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Trade, societal interests, and political parties

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  • Hwang Wonjae
  • Down Ian

    (University of Tennessee, Knoxville, TN, USA)

Abstract

We argue that international trade affects party systems but that this impact is conditioned on the types of societal interests trade brings about. When factor mobility is high, trade promotes class-based grievances that are unlikely to affect the structure of the party system. However, when factor mobility is low, trade will increase the diversity of group interests and policy preferences, thereby pressuring structural change in the party system. A consequence is an increase in the effective number of political parties. The empirical analysis supports these expectations. This paper contributes to our understanding of the political impact of economic liberalization on representative democracy.

Suggested Citation

  • Hwang Wonjae & Down Ian, 2014. "Trade, societal interests, and political parties," Business and Politics, De Gruyter, vol. 16(2), pages 1-26, August.
    • Handle: RePEc:bpj:buspol:v:16:y:2014:i:2:p:26:n:6
    DOI: 10.1515/bap-2013-0038
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    References listed on IDEAS

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    1. Brian Aitken & Ann Harrison & Robert E. Lipsey, 2022. "Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 4, pages 61-87, World Scientific Publishing Co. Pte. Ltd..
    2. Eugene Beaulieu, 2002. "Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper–Samuelson Theorem," Economics and Politics, Wiley Blackwell, vol. 14(2), pages 99-131, July.
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