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Four Simple Tests of Campaign Contributions and Trade Policy Preferences

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  • Eugene Beaulieu
  • Christopher Magee

Abstract

This paper uses campaign contribution data to examine trade policy preferences among political action committees. With perfect factor mobility, as the Heckscher-Ohlin (HO) model assumes, interest group trade positions should depend on their factor of production but not on their industry. We show, consistent with the 2 � 2 HO model, that capital groups consistently back representatives supporting trade liberalization while labor groups favor protectionists. Unlike previous work, we also measure the variation in trade policy preferences within capital and labor groups. We find evidence that the industry net export position significantly affects labor unions' trade policy preferences. Industry characteristics have no impact on capital group lobbying. The former result suggests that empirical analyses of labor PAC contributions that exclude industry characteristics may be misspecified. Copyright Blackwell Publishing Ltd 2004.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Economics & Politics.

Volume (Year): 16 (2004)
Issue (Month): 2 (07)
Pages: 163-187

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Handle: RePEc:bla:ecopol:v:16:y:2004:i:2:p:163-187

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985

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Cited by:
  1. Hyejoon Im & Hankyoung Sun, 2008. "Empirical Analyses of U.S. Congressional Voting on Recent FTA Bills," Governance Working Papers 22992, East Asian Bureau of Economic Research.
  2. Jochen Michaelis & Marco de Pinto, 2014. "The labor market effects of trade unions - Layard meets Melitz," IAAEU Discussion Papers 201406, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  3. Dhingra, Swati, 2006. "Re-examination of the Mayer Median Voter Model of Trade Policy," MPRA Paper 892, University Library of Munich, Germany, revised 14 Nov 2006.
  4. Blanchard, Emily & Willmann, Gerald, 2011. "Escaping a protectionist rut: Policy mechanisms for trade reform in a democracy," Journal of International Economics, Elsevier, vol. 85(1), pages 72-85, September.

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