Do We Really Know That the WTO Increases Trade? Revisited.

The article presents a study which analyzes the implications of the Generalized Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO) to bilateral trade. The study used the gravity model, in which the focus is on the variables such as multilateral trade arrangements and military alliances. The results showed that the GATT/WTO membership increases bilateral trade, while military alliance has limited effect on bilateral trade.