Effects of the Endogenous Scope of Preferentialism on International Goods Trade

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 paper 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.