WTO Accessing Negotiations and Economic Growth: Dynamic Panel Data (Panel GMM) Approach

Document Type : Research Paper


Senion consultant/ the Institute for Trade Studies and Research


Membership in the World Trade Organization (WTO) is one of the most important economic challenges of Iran, after removal of international sanctions. The aim of this paper is to investigate the potential effects of trade negotiations process and WTO membership on economic growth, by exploring and simulating on acceded countries experiences. To this end, we estimated an endogenous economic growth model, using longitudinal data from 179 countries during 1980 and 2015, with dynamic panel data and instrumental variables (Panel GMM) approach. We conclude that there is likely to be a positive and significant relationship between economic growth and WTO accessing negotiation process, as well as WTO membership. It means that, the effects of accession to the WTO on economic growth is not limited to the period after the full membership, but also the process of accession negotiations - because of required reforms in the economic institutions and policies - affect the country's economic growth too.


Main Subjects

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Volume 21, Issue 83 - Serial Number 83
September 2017
Pages 135-182
  • Receive Date: 01 February 2017
  • Revise Date: 03 July 2017
  • Accept Date: 10 July 2017
  • First Publish Date: 23 August 2017