Does WTO Accession Raise Income? When External Commitments Create Value

Accessions to the World Trade Organization/General Agreement on Tariffs and Trade often entail reforms that go beyond narrowly defined trade liberalization. Many such reforms have to overcome fierce resistance in the acceding countries, as reflected in protracted negotiations. We study the growth and investment consequences of WTO/GATT accessions, with attention to a possible selection bias. We find that the answer to the question in the title is a resounding yes, but only for those countries that were subject to rigorous accession procedures. Policy commitments associated with the accessions were helpful, especially for countries with poor governance