The General Agreement on Tariffs and Trade (GATT) and the World Trade
Organization (WTO) have been touted as premier examples of international
institutions, but few studies have offered empirical proof. This article
comprehensively evaluates the effects of the GATT/WTO and other trade
agreements since World War II. Our analysis is organized around two
factors: institutional standing and institutional
embeddedness. We show that many countries had rights and obligations,
or institutional standing, in the GATT/WTO even though they were not
formal members of the agreement. We also expand the analysis to include a
range of other commercial agreements that were embedded with the
GATT/WTO. Using data on dyadic trade since 1946, we demonstrate that
the GATT/WTO substantially increased trade for countries with
institutional standing, and that other embedded agreements had similarly
positive effects. Moreover, our evidence suggests that international trade
agreements have complemented, rather than undercut, each other.An earlier version of this article was presented
at the 99th Annual Meeting of the American Political Science
Association, Philadelphia, August 28–31, 2003. We thank Tim
Büthe, Joanne Gowa, Miles Kahler, Andrew Rose, Arthur Stein, Richard
Steinberg, and seminar participants at Stanford University, the University
of Chicago (PIPES), the University of California, Los Angeles, the
University of California, San Diego, and the University of Virginia, for
many helpful comments. We especially thank Claire Adida, Ashley Conner,
Moonhawk Kim, Erin Krampetz, James Morrison, Mike Nardis, Natan Sachs,
Rachel Rubinfeld, and Jessica Weeks for excellent research assistance. We
are grateful for financial support from the National Science Foundation
(CAREER grant SES-0548285 to Tomz), the Stanford Center for International
Development, and the Vice Provost for Undergraduate Education at
Stanford.