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Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper-Samuelson Theorem

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Author Info
Eugene Beaulieu

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Abstract

If factors of production are mobile between industries, the Stolper-Samuelson Theorem predicts that cleavages over trade policy will form along factor lines. Conversely, if factors are immobile, cleavages will form along industry lines. These two hypotheses are empirically examined using micro-data from a survey conducted during the 1988 Canadian federal election-a de facto referendum on free trade. Factors of production are found to be important determinants of preferences on trade policy. However, the industry of employment also helps determine preferences on trade policy. These results are consistent with partial factor mobility. Copyright 2002 Blackwell Publishers Ltd..

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Publisher Info
Article provided by Blackwell Publishing in its journal Economics and Politics.

Volume (Year): 14 (2002)
Issue (Month): 2 (07)
Pages: 99-131
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Handle: RePEc:bla:ecopol:v:14:y:2002:i:2:p:99-131

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  1. Daniel Ortega & Francisco Rodríguez, 2005. "Trade Policy and Factor Prices: An Empirical Strategy," Wesleyan Economics Working Papers 2005-004, Wesleyan University, Department of Economics. [Downloadable!]
  2. Eugene Beauliue & Ravi Yatawara & Wei Guo Wang, 2005. "Who supports Free Trade in Latin America?," International Trade 0506002, EconWPA. [Downloadable!]
  3. Jens Hainmueller & Michael J. Hiscox, 2005. "Learning to Love Globalization? Education and Individual Attitudes Toward International Trade," International Trade 0505011, EconWPA. [Downloadable!]
    Other versions:
  4. Franziska Ohnsorge & Daniel Trefler, 2004. "Sorting It Out: International Trade and Protection With Heterogeneous Workers," NBER Working Papers 10959, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-22.


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