Impacts of World Trade Organization to Country
Research Journal 1: Research Design
The research questions are critical postulates to this topic, and they help toward unraveling the positive impacts associated with a country that is a member state to the WTO. WTO as the name suggests is a global or conglomerate trade platform win which countries ascribe their membership, and comply with its policy stipulations and frameworks (Hoekman, Aaditya and Philip 45). The following research questions will help in giving the actual impacts of WTO to a country.
What are the relationships between a country’s participation in the WTO and its level of development? This question seeks to find the real positive impacts that accrue to a country as a result of participating in the WTO. Either, this question, directly probes on the positive impacts that are inherent to a country that is an active member of the WTO over a country that passively seeks WTO.
Is there a positive correlation between participating in the WTO and the trade risks to a given country? This question seeks to enumerate various risks that a country is likely to experience whenever it takes a passive involvement with the WTO. This question again enumerates on the benefits of WTO to a country, especially on risk mitigation platforms.
What are the direct impacts of WTO to the developing countries? This is a major question that probes on the level of development in the developing countries against their participation in the WTO.
According to Bown, (67), the WTO has been an active platform in which most development countries take advantage of their developmental initiatives. Through, participating in the world trade organization, these countries gain the requisite skills to abate any challenges associated with the international trade. In addition, the author contends that WTO has provided the required portfolio for sustainability to these countries through engaging the member sates into binding commitment that rejuvenate their certainty over trade policies.
Michalopoulos (45), the WTO is a framework that has created confidence in the international trade, where the member states are facilitated with the technical assistance that builds and fosters trading capacities within their respective economies. WTO has been impactful in supporting development in the 21st century (Bossche 56). Therefore, the author contends that trade has formed the backbone behind development in this century, and its still, expected to revolutionize the world in terms of development and progress.
A dependent variable is a factor that depends on other factors. In this case, dependent variables include; the level of development in the developing countries, the level of trade risks. The dependent variable shall be measured by quantitative method involving cases study analysis of the trade income to the selected countries. Either, surveys shall be relied upon as a quantitative means to this measure.
Independent variable is a factor that causes changes on other measures. An independent variable in this analysis refers to the impacts of engaging in WTO. This measure will depend on qualitative research methods to the select countries. For example, a developing country shall be selected and interviewed on its involvement in the WTO.
Research hypothesis refers to the key assumptions made on the research question and objectives. There shall be two hypotheses, the positive and the null hypothesis respectively
H1: There is a positive correlation between involvement in the WTO and the level of development in the developing countries
H2: There is a negative correlation between WTO and the level of development experienced in the developing countries
Hint: This research is anchored on the positive hypothesis since preliminary research shows the existence of positive causal relationship between WTO and the developments levels experienced in the developing countries. For example, WTO leads to instigation of global trade policies that mitigate risks associated with trade in these countries.
This research relies on a mixed method approach; constructed on both the quantitative and qualitative methods. However, the methodology will be constructed on a multiple case study analysis of main countries that are members of the WTO.
Research Journal 2: Data Collection
Data collection will be exclusive by surveys of the regional development as a result of exports. The value and volume of exports are key parameters that will lead to the examination of the dependent and Independent variables.
Reference: WTO Secretariat estimates.https://www.wto.org/english/thewto_e/coher_e/mdg_e/development_e.htm
The figure above gives a comparative impression of the trade and development achieved by different world regions over a period of time. The data is extracted from the WTO secretarial estimates of the development index in different regions based on their involvement in the World Trade Organization (Bown 28). The authenticity of this data is guaranteed by the primary probe to the individual countries due to their involvement in the WTO activities.
There are four categories of line graphs showing the level of exports by different regions. Before delving into the post of these specifications, it is important to note that the level of development of a country is directly proportional to its national experts. Therefore, the higher the level of export by a country, the higher is its GDP, which translates to development. In addition, an ample development level is inherent on the international portfolio as unveiled by the WTO.
Back to this narrative, the first line graphs shows the level of exports by the developed economies from 1990 to 2009.
The next line graph shows the progressive levels of exports by the developing countries within this range of time
The dotted blue line gives the export progress of the transition economies within this range of time
The red continues red line graph gives the progress level in the exports by the developing countries
The continuous yellow line is an export graph of the entire world, except Hong Kong and China.
This this a multiple graph that gives a comparative view of the exports by various economies, though out main focus is one the developing countries. Other economies act as control points for making an accurate comparison of the expert levels by different regions over a given span of time.
The graph showing a Share of developing economies in the value of world exports, by region: 1990 to 2009 (per cent)
Reference: WTO Secretariat estimates.https://www.wto.org/english/thewto_e/coher_e/mdg_e/development_e.htm
This graph gives a closer scope of the development levels of regions in terms of the value of their respective exports. While exports account to the intensity of development to a country, the value of these products needs to be examined in order to give an intrinsic value of the country’s performance and developmental level (Michalopoulos 52).
The graphs show five world regions in terms of their value of exports, and a correspondence of this to their actual states of development. The graphs give a pictorial view of the Africa, Latin American, Asian, Middle East and Other Region’s exports by value.
The most important aspect of this data is the correlation between the value of exports with the level of development of a country, and how WTO has contributed to all these. Besides, these graphs illustrate a correlation between the Independent variable and dependent variables, and how their interaction shapes each other in the shortlisted regions.
Research Journal 3: Data Analysis
Reiteration of the IV and DV in this research is in correspondence with the volume and value of exports by the developing countries. Since this research invokes a multiple step or comparative analysis, it is ideal to frame and put the manifestation of the IV and DV into perspective.
The significant rise in the trade prospects by the developing countries was due to the trade openness created by the WTO, which allowed most developing countries to participate in the global economy. The impact of open trade policies adopted by the WTO generated a huge influx of these countries to WTO, and the outcome was instantaneous.
The years between 1990 and 2009 shows a period of activity by the developing countries. During these years, the level of experts by the developing countries rose exponentially, and its rate was estimated to above the world’s standings. The first graphs shows the developing countries take significant, yet consistent lead in the volume of exports. Besides, this period signified a balance of trade in the developing countries, with exports exceeding the level of imparts by these countries (Bossche 87). In addition, the world’s total volumes of imparts was significantly reduced in the developing countries. While the world’s export index increased by 50%, the total volume of exports doubled among the developing countries just between 1990 and 2008. Other indicative parameters that changed as a result of the developing countries incepting the WTO were the level of exports among these countries. For instance, the rate of exports among the member developing countries increased from 29% in 1990 to 47% in the year 2009.
The second graph shows how different regions have participated in the export trade between 1990 and 2009. A measure of value in experts is a very important construct that translates to the extent of regional development and progress. According to this bar graph, Asia was rated the most exporting region in terms of value and quality. Its share of world export increased from 10% in 1990 to 21% by 2009. The represents an indicate value increment from US$ 335 million to US$ 2,603 million by 2009. Africa has however, not experienced a further increment in the world export during this period. However, the overall amount of African exports increased from 106 million in 1990 to and indicative amount of US$ 379 million in 2009. The low developing countries like Africa have not experienced a major turnaround impacts in the global marking exports, but at least they have had some improvements. Besides, the Latin America has stagnated in its overall impact on the world’s export trade.
Significance of Regional Exports to its economic Development
Then main focus of this analysis is to vary the correlation between the inception of WTO and the level of development experienced by the developing countries. Considering Asia as a case a case study, its developmental levels have been mainstreamed by its active involvement in export trade. The volume and value of exports by the developing countries have been attributed to their direct association with the WTO trade. On the other hand, such interaction has led to increased volume and value of exports by these countries. These two concepts have further generated a balance of trade where the level of exports exceeds imports.
The fair balance of trade created by high volumes and values of export by the developing countries has transformed their economies and development. For instance, Asian regions enjoy the status of economic hub due to its involvement in international trade. The graph clearly shows that these regions began enjoying a stable economy the moment they took active roles into the WTO. Thus, international trade is fundamental construct to trade and development to these countries.
In conclusion, an adoption of active international trade by joining the WTO has generated fair balance of trade which has spurred development in the developing countries (Bown 43). This position clearly justifies the dependence and positive correlation between the independent (WTO), and the dependent variables (high development level experienced by the developing countries). The adoption of WTO standards, leads to high levels of exports compared to imports, and hence creating a balance of trade between exports and imports of a region (Michalopoulos 75). The end result is positive impacts to the economy, which leads to high levels of development. Principally, the data analysis leads to the achievement of the research hypothesis linking WTO to the high development levels experience din the developing countries.
Bossche, Peter . The Law and Policy of the World Trade Organization: Text, Cases, and Materials. Cambridge: Cambridge University Press, 2008. Print.
Bown, Chad P. Self-enforcing Trade: Developing Countries and Wto Dispute Settlement. Washington, D.C: Brookings Institution Press, 2009. Internet resource.
Hoekman, Bernard M, Aaditya Mattoo, and Philip English. Development, Trade, and the Wto: A Handbook. Washington, D.C: World Bank, 2002. Print.
Michalopoulos, Constantine. Emerging Powers in the Wto: Developing Countries and Trade in the 21st Century. , 2014. Internet resource.