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he Political Economy of Trade and Migration: Evidence from the U.S. Congress

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Author Info

  • Paola Conconi

    (Université Libre de Bruxelles, ECARES and CEPR)

  • Giovanni Facchini

    (University of Nottingham, University of Milan, CEPR, CES-Ifo, IZA and LdA)

  • Max F. Steinhardt

    (Hamburg Institute for International Economics, LdA and CELSI)

  • Maurizio Zanardi

    (Université Libre de Bruxelles and ECARES)

Abstract

Over the last decades, the United States has become increasingly integrated in the world economy. Very low trade barriers and comparatively liberal migration policies have made these developments possible. What drove US congressmen to support the recent wave of globalization? While much of the literature has emphasized the differences that exist between the political economy of trade and migration, in this paper we find that important similarities should not be overlooked. In particular, our analysis of congressional voting between 1970 and 2006 suggests that economic drivers that work through the labor market play an important role in shaping representatives’ behavior on both types of policies. Representatives from more skilled-labor abundant districts are more likely to support both trade liberalization and a more open stance vis-à-vis unskilled immigration. Still, important systematic differences exist: welfare state considerations and network effects have an impact on the support for immigration liberalization, but not for trade; Democratic lawmakers are systematically more likely to support a more open migration stance than their Republican counterparts, whereas the opposite is true for trade liberalization.

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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 346.

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Length: 41
Date of creation: 13 Nov 2012
Date of revision: 13 Nov 2012
Handle: RePEc:csl:devewp:346

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Keywords: Trade Reforms; Immigration Reforms;

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References

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  1. Jorge G. Gonzalez & Nipoli Kamdar, 2000. "Do Not Give Me Your Tired, Your Poor! Determinants of Legislator Voting on Immigration Issues," Eastern Economic Journal, Eastern Economic Association, vol. 26(2), pages 127-143, Spring.
  2. Facchini, Giovanni & Steinhardt, Max, 2011. "What Drives U.S. Immigration Policy? Evidence from Congressional Roll Call Votes," CEPR Discussion Papers 8299, C.E.P.R. Discussion Papers.
  3. Gordon H. Hanson & Antonio Splimbergo, 1999. "Political Economy, Sectoral Shocks, and Border Enforcement," NBER Working Papers 7315, National Bureau of Economic Research, Inc.
  4. Gordon H. Hanson & Kenneth Scheve & Matthew J. Slaughter, 2007. "Public Finance And Individual Preferences Over Globalization Strategies," Economics and Politics, Wiley Blackwell, vol. 19(1), pages 1-33, 03.
  5. Hainmueller, Jens & Hiscox, Michael J., 2007. "Educated Preferences: Explaining Attitudes Toward Immigration in Europe," International Organization, Cambridge University Press, vol. 61(02), pages 399-442, April.
  6. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
  7. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
  8. Kishore Gawande & Usree Bandyopadhyay, 2000. "Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 139-152, February.
  9. Baldwin, Robert E & Magee, Christopher S, 2000. " Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills," Public Choice, Springer, vol. 105(1-2), pages 79-101, October.
  10. Paola Conconi & Giovanni Facchini & Maurizio Zanardi, 2012. "Fast-Track Authority and International Trade Negotiations," ULB Institutional Repository 2013/137521, ULB -- Universite Libre de Bruxelles.
  11. Collins, William J & O'Rourke, Kevin H & Williamson, Jeffrey G, 1997. "Were Trade and Factor Mobility Substitutes in History?," CEPR Discussion Papers 1661, C.E.P.R. Discussion Papers.
  12. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September.
  13. Anna Maria Mayda (Georgetown University), 2005. "Who Is Against Immigration? A Cross-Country Investigation of Individual Attitudes towards Immigrants," Working Papers gueconwpa~05-05-10, Georgetown University, Department of Economics.
  14. Hatton, Timothy J. & Williamson, Jeffrey G., 2006. "A Dual Policy Paradox: Why Have Trade and Immigration Policies Always Differed in Labor-Scarce Economies?," IZA Discussion Papers 2146, Institute for the Study of Labor (IZA).
  15. Wellisch, Dietmar & Walz, Uwe, 1998. "Why do rich countries prefer free trade over free migration? The role of the modern welfare state," European Economic Review, Elsevier, vol. 42(8), pages 1595-1612, September.
  16. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
  17. Claudia Goldin, 1994. "The Political Economy of Immigration Restriction in the United States, 1890 to 1921," NBER Chapters, in: The Regulated Economy: A Historical Approach to Political Economy, pages 223-258 National Bureau of Economic Research, Inc.
  18. Blonigen, Bruce A & Figlio, David N, 1998. "Voting for Protection: Does Direct Foreign Investment Influence Legislator Behavior?," American Economic Review, American Economic Association, vol. 88(4), pages 1002-14, September.
  19. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
  20. Facchini, Giovanni & Willmann, Gerald, 2005. "The political economy of international factor mobility," Journal of International Economics, Elsevier, vol. 67(1), pages 201-219, September.
  21. Paola Conconi & Giovanni Facchini & Maurizio Zanardi, 2011. "Policymakers’ Horizon and Trade Reforms," Development Working Papers 311, Centro Studi Luca d\'Agliano, University of Milano.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The political economy of migration (the US)
    by UDADISI in UDADISI on 2013-01-14 01:53:00
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Cited by:
  1. Vöpel, Henning, 2013. "A Zidane clustering theorem: Why top players tend to play in one team and how the competitive balance can be restored," HWWI Research Papers 141, Hamburg Institute of International Economics (HWWI).
  2. James Lake & Daniel L. Millimet, 2014. "An Empirical Analysis of Trade-Related Redistribution and the Political Viability of Free Trade," Departmental Working Papers 1405, Southern Methodist University, Department of Economics.

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