IDEAS home Printed from https://ideas.repec.org/a/spr/revint/v13y2018i2d10.1007_s11558-017-9296-x.html
   My bibliography  Save this article

Domestic political determinants of the onset of WTO disputes

Author

Listed:
  • B. Peter Rosendorff

    (New York University)

  • Alastair Smith

    (New York University)

Abstract

Trade disputes are driven by domestic politics, and the onset of trade disputes are driven by changes in the leadership within states. We offer two stylized facts for explanation: Leader change leads to dispute onset, and the effect is greater in autocracies than in democracies. We develop a model that explains changes in trade policy and dispute onset induced by shifts in the sectors represented in government when leaders change. Democracies protect a wider set of industries at shallower levels than do autocracies. When leaders change in autocracies, new sectors enter the winning coalition, resulting in new deeper barriers that spark disputes. When leaders change in democracies, the change in the winning coalition is not as stark, and the depth of the shifts in trade barriers is not that large, resulting is a smaller effect on dispute initiation.

Suggested Citation

  • B. Peter Rosendorff & Alastair Smith, 2018. "Domestic political determinants of the onset of WTO disputes," The Review of International Organizations, Springer, vol. 13(2), pages 243-272, June.
    • Handle: RePEc:spr:revint:v:13:y:2018:i:2:d:10.1007_s11558-017-9296-x
    DOI: 10.1007/s11558-017-9296-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11558-017-9296-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11558-017-9296-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Edward D. Mansfield & Helen V. Milner & B. Peter Rosendorff, 2015. "Free to Trade: Democracies, Autocracies, and International Trade," World Scientific Book Chapters, in: Edward D Mansfield (ed.), THE POLITICAL ECONOMY OF INTERNATIONAL TRADE, chapter 7, pages 127-143, World Scientific Publishing Co. Pte. Ltd..
    2. Dreher, Axel & Jensen, Nathan M., 2013. "Country or leader? Political change and UN General Assembly voting," European Journal of Political Economy, Elsevier, vol. 29(C), pages 183-196.
    3. Chad P. Bown, 2002. "The Economics of Trade Disputes, the GATT’s Article XXIII, and the WTO’s Dispute Settlement Understanding," Economics and Politics, Wiley Blackwell, vol. 14(3), pages 283-323, November.
    4. Johns, Leslie & Pelc, Krzysztof J., 2014. "Who Gets to Be In the Room? Manipulating Participation in WTO Disputes," International Organization, Cambridge University Press, vol. 68(3), pages 663-699, July.
    5. Edward D. Mansfield & Helen V. Milner & B. Peter Rosendorff, 2015. "Why Democracies Cooperate More: Electoral Control and International Trade Agreements," World Scientific Book Chapters, in: Edward D Mansfield (ed.), THE POLITICAL ECONOMY OF INTERNATIONAL TRADE, chapter 11, pages 227-263, World Scientific Publishing Co. Pte. Ltd..
    6. Jensen, J. Bradford & Quinn, Dennis P. & Weymouth, Stephen, 2015. "The Influence of Firm Global Supply Chains and Foreign Currency Undervaluations on US Trade Disputes," International Organization, Cambridge University Press, vol. 69(4), pages 913-947, October.
    7. Tomz, Michael & King, Gary & Zeng, Langche, 2003. "ReLogit: Rare Events Logistic Regression," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 8(i02).
    8. Rosendorff, B. Peter & Milner, Helen V., 2001. "The Optimal Design of International Trade Institutions: Uncertainty and Escape," International Organization, Cambridge University Press, vol. 55(4), pages 829-857, October.
    9. de Mesquita, Bruce Bueno & Siverson, Randolph M., 1995. "War and the Survival of Political Leaders: A Comparative Study of Regime Types and Political Accountability," American Political Science Review, Cambridge University Press, vol. 89(4), pages 841-855, December.
    10. Marc L. Busch, 2000. "Democracy, Consultation, and the Paneling of Disputes under GATT," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(4), pages 425-446, August.
    11. Goldstein, Judith & Martin, Lisa L., 2000. "Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note," International Organization, Cambridge University Press, vol. 54(3), pages 603-632, July.
    12. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
    13. Betz, Timm & Kerner, Andrew, 2016. "Real Exchange Rate Overvaluation and WTO Dispute Initiation in Developing Countries," International Organization, Cambridge University Press, vol. 70(4), pages 797-821, October.
    14. Chaudoin, Stephen, 2014. "Audience Features and the Strategic Timing of Trade Disputes," International Organization, Cambridge University Press, vol. 68(4), pages 877-911, October.
    15. Rosendorff, B Peter, 1996. "Voluntary Export Restraints, Antidumping Procedure, and Domestic Politics," American Economic Review, American Economic Association, vol. 86(3), pages 544-561, June.
    16. Broz, J. Lawrence & Werfel, Seth H., 2014. "Exchange Rates and Industry Demands for Trade Protection," International Organization, Cambridge University Press, vol. 68(2), pages 393-416, April.
    17. Chad P. Bown, 2004. "On the Economic Success of GATT/WTO Dispute Settlement," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 811-823, August.
    18. Talya Bobick & Alastair Smith, 2013. "The impact of leader turnover on the onset and the resolution of WTO disputes," The Review of International Organizations, Springer, vol. 8(4), pages 423-445, December.
    19. World Bank, 2010. "World Development Indicators 2010," World Bank Publications - Books, The World Bank Group, number 4373.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Renee Bowen & Manfred Elsig, 2018. "Trade and investment: Introduction to the special issue," The Review of International Organizations, Springer, vol. 13(2), pages 137-142, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeheung Ryu & Randall W. Stone, 2018. "Plaintiffs by proxy: A firm-level approach to WTO dispute resolution," The Review of International Organizations, Springer, vol. 13(2), pages 273-308, June.
    2. Tadashi Ito, 2007. "NAFTA and productivity convergence between Mexico and the US," IHEID Working Papers 26-2007, Economics Section, The Graduate Institute of International Studies, revised 27 Nov 2007.
    3. Aydin B. Yildirim & J. Tyson Chatagnier & Arlo Poletti & Dirk De Bièvre, 2018. "The internationalization of production and the politics of compliance in WTO disputes," The Review of International Organizations, Springer, vol. 13(1), pages 49-75, March.
    4. M. Mahdi Ghodsi, 2018. "Determinants of specific trade concerns raised on technical barriers to trade EU versus non-EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(1), pages 83-128, February.
    5. Kokko, Ari & Gustavsson Tingvall, Patrik & Videnord, Josefin, 2017. "Which Antidumping Cases Reach the WTO?," Ratio Working Papers 286, The Ratio Institute.
    6. Jason S. Davis, 2022. "Screening for losers: Trade institutions and information," The Review of International Organizations, Springer, vol. 17(1), pages 1-37, January.
    7. Horn, Henrik & Mavroidis, Petros C., 2006. "A Survey of the Literature on the WTO Dispute Settlement System," Working Paper Series 684, Research Institute of Industrial Economics.
    8. Simon Schropp, 2007. "Revisiting the "Compliance-vs.-Rebalancing" Debate in WTO Scholarship a Unified Research Agenda," IHEID Working Papers 29-2007, Economics Section, The Graduate Institute of International Studies, revised Dec 2007.
    9. Aaronson, Susan & Abouharb, M. Rodwan, 2011. "Does the WTO Help Member States Clean Up?," Papers 268, World Trade Institute.
    10. Talya Bobick & Alastair Smith, 2013. "The impact of leader turnover on the onset and the resolution of WTO disputes," The Review of International Organizations, Springer, vol. 8(4), pages 423-445, December.
    11. Bown, Chad P., 2014. "Trade policy instruments over time," Policy Research Working Paper Series 6757, The World Bank.
    12. Jeffrey Kucik, 2012. "The Domestic Politics of Institutional Design: Producer Preferences over Trade Agreement Rules," Economics and Politics, Wiley Blackwell, vol. 24(2), pages 95-118, July.
    13. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
    14. Fouad Pervez, 2015. "Waiting for election season," The Review of International Organizations, Springer, vol. 10(2), pages 265-303, June.
    15. Baccini, Leonardo & Dür, Andreas & Elsig, Manfred & Milewicz, Karolina, 2011. "The design of preferential trade agreements: A new dataset in the Making," WTO Staff Working Papers ERSD-2011-10, World Trade Organization (WTO), Economic Research and Statistics Division.
    16. Christina Davis, 2015. "The political logic of dispute settlement: Introduction to the special issue," The Review of International Organizations, Springer, vol. 10(2), pages 107-117, June.
    17. Petros C. Mavroidis, 2016. "Dispute Settlement in the WTO. Mind over Matter," RSCAS Working Papers 2016/04, European University Institute.
    18. Tobias Böhmelt & Edita Butkutė, 2018. "The self-selection of democracies into treaty design: insights from international environmental agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 18(3), pages 351-367, June.
    19. Spilker, Gabriele, 2013. "Compliance with WTO Dispute Rulings," Papers 585, World Trade Institute.
    20. Roy, Martin, 2010. "Endowments, power, and democracy: Political economy of multilateral commitments on trade in services," WTO Staff Working Papers ERSD-2010-11, World Trade Organization (WTO), Economic Research and Statistics Division.

    More about this item

    Keywords

    Leader change; Dispute onset; WTO; Regime type;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:revint:v:13:y:2018:i:2:d:10.1007_s11558-017-9296-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.