This paper investigates the effectiveness of protected areas in slowing tropical forest clearing in 64 countries in Asia/Pacific, Africa and Latin America during the period of 2001–2012 by comparing deforestation rates inside and within 10 km outside of the boundaries of protected areas. Annual time series of these deforestation rates were constructed from recently published high‐resolution data on forest clearing from Hansen et al. (2013). For 4,028 parks, panel estimation based on a variety of park characteristics was conducted to test if deforestation was lower in protected areas because of their protected status, or if other factors explained the difference. From a sample of 726 parks established since 2002, a test was also conducted to investigate the effect of park establishment on protection. Findings suggest park size, national park status and management by indigenous people all are significantly associated with effective protection across regions. For the Asia/Pacific region, the test offers compelling evidence that park establishment has a near‐immediate and powerful effect.