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Risk, Government andd Globalization: International Survey Evidence

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  • Anna Maria Mayda
  • Kevin H. O'Rourke

Abstract

This paper uses international survey data to document two stylized facts. First, risk aversion is associated with anti-trade attitudes. Second, this effect is smaller in countries with greater levels of government expenditure. The paper thus provides evidence for the microeconomic underpinnings of the argument associated with Ruggie (1982), Rodrik (1998) and others that government spending can bolster support for globalization by reducing the risk associated with it in the minds of voters.

Suggested Citation

  • Anna Maria Mayda & Kevin H. O'Rourke, 2007. "Risk, Government andd Globalization: International Survey Evidence," The Institute for International Integration Studies Discussion Paper Series iiisdp218, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp218
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    Cited by:

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    2. Burgoon, Brian & Demetriades, Panicos & Underhill, Geoffrey R.D., 2012. "Sources and legitimacy of financial liberalization," European Journal of Political Economy, Elsevier, vol. 28(2), pages 147-161.
    3. Tomiura, Eiichi & Ito, Banri & Mukunoki, Hiroshi & Wakasugi, Ryuhei, 2021. "Individual characteristics and the demand for reciprocity in trade liberalization: Evidence from a survey in Japan," Japan and the World Economy, Elsevier, vol. 58(C).
    4. Italo Colantone & Piero Stanig, 2017. "The Trade Origins of Economic Nationalism: Import Competition and Voting Behavior in Western Europe," BAFFI CAREFIN Working Papers 1749, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    5. Mayda, Anna Maria, 2008. "Why are people more pro-trade than pro-migration?," Economics Letters, Elsevier, vol. 101(3), pages 160-163, December.
    6. Ehrlich Sean D, 2010. "Who Supports Compensation? Individual Preferences for Trade-Related Unemployment Insurance," Business and Politics, De Gruyter, vol. 12(1), pages 1-24, April.
    7. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2020. "The political economy of trade and migration: Evidence from the U.S. Congress," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 250-278, July.
    8. Giuseppe Bertola & Anna Lo Prete, 2009. "Openness, Financial Markets and Policies: Cross-Country and Dynamic Patterns," Annals of Economics and Statistics, GENES, issue 95-96, pages 167-182.
    9. Giuseppe Bertola, 2007. "Finance and Welfare States in Globalising Markets," RBA Annual Conference Volume (Discontinued), in: Christopher Kent & Jeremy Lawson (ed.),The Structure and Resilience of the Financial System, Reserve Bank of Australia.
    10. Kono Daniel Y., 2011. "Insuring Free Trade: Unemployment Insurance and Trade Policy," Business and Politics, De Gruyter, vol. 13(3), pages 1-31, October.
    11. Philipp Harms & Nils D. Steiner, 2023. "Attitudes towards Globalization: A Survey," Working Papers 2305, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    12. Giovanni Facchini & Tommaso Frattini & Cora Signorotto, 2013. "Mind What Your Voters Read: Media Exposure and International Economic Policy Making," Development Working Papers 358, Centro Studi Luca d'Agliano, University of Milano.
    13. Ina Jäkel & Marcel Smolka, 2013. "Individual Attitudes Towards Trade: Stolper-Samuelson Revisited," Open Economies Review, Springer, vol. 24(4), pages 731-761, September.
    14. Jonas A. Gunnarsson & Gylfi Zoega, 2017. "East Versus West on the European Populism Scale," CESifo Working Paper Series 6663, CESifo.
    15. Joonghyun Kwak & Michael Wallace, 2018. "The Impact of the Great Recession on Perceived Immigrant Threat: A Cross-National Study of 22 Countries," Societies, MDPI, vol. 8(3), pages 1-23, July.
    16. Nils D Steiner, 2018. "Attitudes towards the Transatlantic Trade and Investment Partnership in the European Union: The treaty partner heuristic and issue attention," European Union Politics, , vol. 19(2), pages 255-277, June.
    17. Giuseppe Bertola, 2010. "Inequality, integration, and policy: issues and evidence from EMU," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 345-365, September.
    18. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2020. "The political economy of trade and migration: Evidence from the U.S. Congress," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 250-278, July.
    19. Naci Canpolat & Hüseyin Ozel, 2008. "Evolutionary Dynamics of Globalization," Working Papers 2008/16, Turkish Economic Association.
    20. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2012. "The Political Economy of Trade and Migration: Evidence from the US Congress: CEPR Discussion Paper 9270," Working Papers ECARES ECARES 2012-49, ULB -- Universite Libre de Bruxelles.
    21. Jäkel, Ina C. & Smolka, Marcel, 2017. "Trade policy preferences and factor abundance," Journal of International Economics, Elsevier, vol. 106(C), pages 1-19.

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    More about this item

    Keywords

    Trade attitudes; risk;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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