In this paper, we empirically investigate how government ideology affects trade policy. The prediction of a partisan, ideology-based model (within a two-sector, two-factor Heckscher-Ohlin framework) is that left-wing governments will adopt more protectionist trade policies in capital rich countries, but adopt more pro-trade policies in labor rich economies than right-wing ones. The data strongly support this prediction in a very robust fashion. There is some evidence, that this relationship may hold better in democracies than in dictatorships though the magnitude of the partisan effect seems stronger in dictatorships.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
9239.
Length: Date of creation: Sep 2002 Date of revision: Handle: RePEc:nbr:nberwo:9239
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Find related papers by JEL classification: F10 - International Economics - - Trade - - - General F11 - International Economics - - Trade - - - Neoclassical Models of Trade
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Gene M. Grossman & Elhanan Helpman, 1992.
"Protection For Sale,"
NBER Working Papers
4149, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Grossman, G.M. & Helpman, E., 1992.
"Protection for Sale,"
Papers
162, Princeton, Woodrow Wilson School - Public and International Affairs.
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