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Why Adjudicate?Enforcing Trade Rules in the WTO$
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Christina L. Davis

Print publication date: 2012

Print ISBN-13: 9780691152752

Published to Princeton Scholarship Online: October 2017

DOI: 10.23943/princeton/9780691152752.001.0001

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Conflict Management: Evaluating the Effectiveness of Adjudication

Conflict Management: Evaluating the Effectiveness of Adjudication

(p.244) 6 Conflict Management: Evaluating the Effectiveness of Adjudication
Why Adjudicate?

Christina L. Davis

Princeton University Press

This chapter examines the effectiveness of legal complaints to bring an end to trade disputes. Using quantitative data from the United States, it shows that when comparing similar kinds of disputes and trade partners, states gained better outcomes through the dispute mechanism. Conditioning on the fact that the most politicized cases are selected for World Trade Organization (WTO) adjudication, the legal forum is quite effective for dispute settlement. The chapter applies statistical techniques of matching to the sample of negotiated trade barriers to adjust for their propensity to be raised in adjudication, and then conducts regression analysis of dispute outcomes in terms of policy change. The results show that adjudication increases the probability of progress to resolve the complaint by one-third. Furthermore, a duration model that controls for the variables that influence strategy selection illustrates how adjudication reduces the time to removal of the barrier.

Keywords:   trade disputes, World Trade Organization, adjudication, dispute settlement, trade barriers, United States

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