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Who supports Free Trade in Latin America?

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Author Info

  • Eugene Beauliue

    (Univeristy of Calgary & International Trade Canada)

  • Ravi Yatawara

    (University of Delaware)

  • Wei Guo Wang

    (University of Calgary)

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    Abstract

    This paper examines individual trade policy preferences across the 17 countries in Latin America. The focus is on whether skilled or unskilled workers are more likely to support liberalized trade and on whether country characteristics, such as factor endowments, alter the preferences of skilled and unskilled workers. Based on the standard Heckscher-Ohlin model and the Stolper-Samuelson theorem, wage inequality in developing countries will decrease under free trade and unskilled workers will benefit. We find that on average skilled workers are more likely than unskilled workers to support free trade in Latin American countries. Separate country regressions reveal that this pattern is only statistically significant in 8 out of 17 Latin American countries. However, there are no countries in our sample in which unskilled workers are statistically more likely to support free trade than skilled workers. Not even in the lowest skill endowed country among our 17 Latin American countries. We also find that people from Latin American countries with higher GDP, faster growth, more cropland, and a longer period of time since reform were more likely on average to support free trade.

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    File URL: http://128.118.178.162/eps/it/papers/0506/0506002.pdf
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    Bibliographic Info

    Paper provided by EconWPA in its series International Trade with number 0506002.

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    Length: 24 pages
    Date of creation: 04 Jun 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpit:0506002

    Note: Type of Document - pdf; pages: 24
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    Web page: http://128.118.178.162

    Related research

    Keywords: Trade policy; Latin America; Stolper-Samuelson theorem;

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    References

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    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.:
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    1. Eugene Beaulieu, 2002. "Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper-Samuelson Theorem," Economics and Politics, Wiley Blackwell, vol. 14(2), pages 99-131, 07.
    2. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
    3. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4303, Inter-American Development Bank, Research Department.
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    Citations

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    Cited by:
    1. Jeffrey Drope & Abdur Chowdhury, 2014. "Economic (In)Security and Gender Differences in Trade Policy Attitudes," William Davidson Institute Working Papers Series wp1067, William Davidson Institute at the University of Michigan.

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