The Distributional Consequences of Preferential Trade Liberalization: Firm-Level Evidence

The Distributional Consequences of Preferential Trade Liberalization: Firm-Level Evidence

photo: Dirk Dallas Abstract We analyze data covering the near universe of U.S. foreign direct investment and disaggregated tariff data for all preferential trade agreements (PTA) signed by the United States. We find that preferential trade liberalization disproportionately benefits the largest and most productive multinationals. Specifically, our results indicate that U.S. preferential tariffs increase sales to […]