WTO accession and firm exports in developing economies

The World Trade Organization (WTO) has a significant impact on international business activities due to its actions and decisions that set the rules of trade. However, our understanding how WTO affects firm behavior is limited. Taking advantage variations in entry dates Organization, we perform difference-in-differences estimation examine whether country’s accession significantly increases firms’ export intensity. In addition, apply insights from threat-rigidity hypothesis argue reactions supranational institutions vary depending managers perceive institutional environment. We find firms countries enter experience higher growth intensity when their have positive perceptions about domestic institutions. contrast, does not increase whose as obstacles. Our findings suggest institutions, such WTO, play an important role strategic make. full value can only be realized if are aware positively disposed engage with these