The Group of Eight (G8) is an unofficial forum of the heads of state of the
eight leading industrialized countries. In this paper, I examine the effect of
the G8 (and its predecessor, the G7) on international trade. I use a gravity
model of trade; the panel data set covers bilateral trade between 175
countries from 1948 through 1999. I find that membership in the G7/G8 is
consistently associated with a strong positive effect on trade.