In particular, the t-tests applied to [[beta].sub.12] and [[beta].sub.14] reject the hypotheses that [[beta].sub.12] and [[beta].sub.14]--WAR1's and WAR3's coefficients--equal 0, significant at the 5% level.
Moreover, because countries do not punish transgressors instantaneously, WAR1, WAR2, WAR3, and WAR4, were each lagged, allowing countries multiple years to re-allocate exports away from transgressors.