Effects of the Endogenous Scope of Preferentialism on International Goods Trade

Abstract

Abstract Previous empirical research has assumed that goods trade responds to goods trade preferentialism only, while other forms of preferentialism — such as services trade or investment preferentialism — are irrelevant for goods trade. This article provides novel evidence for the gains from a broader scope of preferentialism (in terms of the number of dimensions covered: goods, services, and investment) at the intensive and extensive country margins of bilateral goods trade.