Does the Generalized System of Preferences Promote Peace in Fragile Economies?

The Generalized System of Preferences (GSP) was established to promote the exports of developing economies to industrialized economies through non reciprocal trade preferences. This chapter investigates the effect of the GSP on
making trade work for peace in fragile economies. We find that increasing exports to GSP-granting countries reduces the risk of intra-state conflict onset in fragile economies. A higher utilization rate of the GSP could further contribute to this
peace-promoting effect. This effect also differs across products. More exports of agricultural products could amplify the pro-peace effect of exports under the GSP, while we do not find statistically significant effects for manufacturing or resource-based products.