Gains or Losses? WTO Dispute Settlement Impacts for Indonesia Trade Flows

Deskripsi

Analyzing all of Indonesia's WTO disputes from 1996 to 2020 and comparing Indonesia's trade flows with other WTO members, this study examines the impacts of WTO disputes on Indonesia's trade flows within the MFN principle framework. FE is utilized to account for the potential influence of unobserved features in each dispute. Our findings indicate that Indonesia gains more compared to other WTO members. Furthermore, we find only limited evidence that market power influences post-disputed imports and cannot confirm that democratic countries tend to avoid discriminatory settlements. Demonstrated by the bootstrap, our outcomes are robust, the coefficients remain consistent and significant.