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Risk, Government and Globalization: International Survey Evidence

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Author Info

  • Anna Maria Mayda

    (Georgetown University)

  • Kevin H. O’Rourke

    () (Department of Economics, Trinity College Dublin)

  • Richard Sinnott

    (University College Dublin)

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.

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File URL: http://www.tcd.ie/Economics/TEP/2007/TEP0507.pdf
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Bibliographic Info

Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number tep0507.

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Length: 28 pages
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:tcd:tcduee:tep0507

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Postal: Trinity College, Dublin 2
Phone: (+ 353 1) 6081325
Fax: 6772503
Web page: http://www.tcd.ie/Economics/
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Keywords: Trade attitudes; risk;

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References

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  1. 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.
  2. Giovanni Facchini & Anna Maria Mayda, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants across Countries," CESifo Working Paper Series 1768, CESifo Group Munich.
  3. Jens Hainmueller & Michael J. Hiscox, 2005. "Learning to Love Globalization? Education and Individual Attitudes Toward International Trade," International Trade 0505011, EconWPA.
  4. Mayda, Anna Maria & Rodrik, Dani, 2001. "Why are Some People (and Countries) More Protectionist than Others?," CEPR Discussion Papers 2960, C.E.P.R. Discussion Papers.
  5. Hays, Jude C. & Ehrlich, Sean D. & Peinhardt, Clint, 2005. "Government Spending and Public Support for Trade in the OECD: An Empirical Test of the Embedded Liberalism Thesis," International Organization, Cambridge University Press, vol. 59(02), pages 473-494, April.
  6. Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, 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. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," Harvard Institute of Economic Research Working Papers 1936, Harvard - Institute of Economic Research.
  9. Christian Dustmann & Ian Preston, 2004. "Is Immigration Good or Bad for the Economy? Analysis of Attitudinal Responses," CReAM Discussion Paper Series 0406, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  10. James E. Rauch & Vitor Trindade, 1999. "Ethnic Chinese Networks in International Trade," NBER Working Papers 7189, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Brian Burgoon & Panicos O. Demetriades & Geoffrey R.D. Underhill, 2011. "Sources and Legitimacy of Financial Liberalization," Discussion Papers in Economics 11/45, Department of Economics, University of Leicester.
  2. Mayda, Anna Maria, 2007. "Why Are People More Pro-trade Than Pro-migration?," CEPR Discussion Papers 6351, C.E.P.R. Discussion Papers.
  3. Giuseppe BERTOLA & Anna LO PRETE, 2009. "Openness, Financial Markets and Policies: Cross-Country and Dynamic Patterns," Annales d'Economie et de Statistique, ENSAE, issue 95-96, pages 167-182.
  4. Giuseppe Bertola, 2010. "Inequality, integration, and policy: issues and evidence from EMU," Journal of Economic Inequality, Springer, vol. 8(3), pages 345-365, September.
  5. Giuseppe Bertola, 2007. "Finance and Welfare States in Globalising Markets," RBA Annual Conference Volume, in: Christopher Kent & Jeremy Lawson (ed.), The Structure and Resilience of the Financial System Reserve Bank of Australia.
  6. Naci Canpolat & Hüseyin Ozel, 2008. "Evolutionary Dynamics of Globalization," Working Papers 2008/16, Turkish Economic Association.

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