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Micro-foundations of individual preferences for protectionism in Canada and Uruguay

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  • Natalia Melgar

    (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

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    Abstract

    Even when the majority of economists agree on the benefits of free trade, everywhere we turn to,trade is restricted. In contexts where politicians offer different policy options and voters demand them based on their individual preferences, one may ask what determines personal preferences on trade policy; which economic, cultural, social elements shape them. The goal of this paper is to answer these questions in the case of two different economies: Canada and Uruguay. The data source is the module on National Identity (2003) which was carried out in accordance with the International Social Survey Program. Based on probit models, the main conclusion of this paper is that the evidence does not support the conclusions on preference formation of the Hecksher-Ohlin trade model, while elements such as religion, political preferences, and nationalism, as well as demographic characteristics, have a significant impact on trade policy preferences.

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    File URL: http://decon.edu.uy/publica/2007/1707.pdf
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    Bibliographic Info

    Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 1707.

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    Length: 32 pages
    Date of creation: Nov 2007
    Date of revision:
    Handle: RePEc:ude:wpaper:1707

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    Keywords: Preferences; micro-foundations; protectionism; rationality; ISSP;

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    1. Anna Maria Mayda (Georgetown University) and Dani Rodrik (Harvard University), 2005. "Why are some people (and countries) more protectionist than others?," Working Papers gueconwpa~05-05-11, Georgetown University, Department of Economics.
    2. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2002. "People's Opium? Religion and Economic Attitudes," CEPR Discussion Papers 3588, C.E.P.R. Discussion Papers.
    3. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
    4. K. H. O'Rourke & R. Sinnott, 2001. "The Determinants of Individual Trade Policy Preferences: International Survey Evidence," CEG Working Papers 20016, Trinity College Dublin, Department of Economics.
    5. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, EconWPA.
    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.
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