Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization
AbstractThe aim of the paper is to see whether individuals' attitudes towards globalization are consistent with the predictions of Heckscher-Ohlin theory. The theory predicts that the impact of being skilled or unskilled on attitudes towards trade and immigration should depend on a country's skill endowments, with the skilled being less anti-trade and anti-immigration in more skill-abundant countries (here taken to be richer countries) than in more unskilled-labour-abundant countries (here taken to be poorer countries). These predictions are confirmed, using survey data for 24 countries. Being high-skilled is associated with more pro-globalization attitudes in rich countries; while in some of the very poorest countries in the sample being high-skilled has a negative (if statistically insignificant) impact on pro-globalization sentiment. More generally, an interaction term between skills and GDP per capita has a negative impact in regressions explaining anti-globalization sentiment. Furthermore, individuals view protectionism and anti-immigrant policies as complements rather than as substitutes, which is what simple Heckscher-Ohlin theory predicts.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9872.
Date of creation: Jul 2003
Date of revision:
Publication status: published as Findlay, R., R. Henriksson, H. Lindgren and M. Lundahl (eds.) Eli Heckscher, International Trade, and Economic History. MIT Press, 2006.
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Other versions of this item:
- O'Rourke, Kevin H, 2003. "Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization," CEPR Discussion Papers 4018, C.E.P.R. Discussion Papers.
- Kevin H. O'Rourke, 2003. "Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization," The Institute for International Integration Studies Discussion Paper Series iiisdp07, IIIS.
- F1 - International Economics - - Trade
- F2 - International Economics - - International Factor Movements and International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-07-29 (All new papers)
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