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Individual attitudes towards trade: Stolper-Samuelson revisited

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  • Jäkel, Ina C.
  • Smolka, Marcel

Abstract

This paper studies to what extent individuals form their preferences towards trade policies along the lines of the Stolper-Samuelson logic. We employ a novel international survey data set with an extensive coverage of high-, middle-, and low-income countries, address a subtle methodological shortcoming in previous studies and condition on aspects of individualenlightenment. We find statistically significant and economically large Stolper-Samuelson effects. In the United States, being high-skilled increases an individual's probability of favoring free trade by up to twelve percentage points, other things equal. In Ethiopia, the effect amounts to eight percentage points, but in exactly the opposite direction. --

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Bibliographic Info

Paper provided by University of Tuebingen, Faculty of Economics and Social Sciences in its series University of Tuebingen Working Papers in Economics and Finance with number 11.

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Date of creation: 2011
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Handle: RePEc:zbw:tuewef:11

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Keywords: Trade policy; Voter preferences; Political economy;

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  1. K. H. O'Rourke & R. Sinnott, 2001. "The Determinants of Individual Trade Policy Preferences: International Survey Evidence," Trinity Economics Papers 200110, Trinity College Dublin, Department of Economics.
  2. O'Rourke, Kevin H, 2003. "Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization," CEPR Discussion Papers 4018, C.E.P.R. Discussion Papers.
  3. 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.
  4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  5. Ehrlich, Sean D., 2007. "Access to Protection: Domestic Institutions and Trade Policy in Democracies," International Organization, Cambridge University Press, vol. 61(03), pages 571-605, July.
  6. Eugene Beaulieu & Michael Benarroch & James D. Gaisford, 2011. "Intra‐industry Trade Liberalization: Why Skilled Workers are More Likely to Support Free Trade," Review of International Economics, Wiley Blackwell, vol. 19(3), pages 579-594, 08.
  7. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  8. 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.
  9. Jens Hainmueller & Michael J. Hiscox, 2005. "Learning to Love Globalization? Education and Individual Attitudes Toward International Trade," International Trade 0505011, EconWPA.
  10. Paul R. Krugman, 2008. "Trade and Wages, Reconsidered," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 103-154.
  11. Eugene Beaulieu & Ravindra A. Yatawara & Wei Guo Wang, 2005. "Who Supports Free Trade in Latin America?," The World Economy, Wiley Blackwell, vol. 28(7), pages 941-958, 07.
  12. Mansfield, Edward D. & Mutz, Diana C., 2009. "Support for Free Trade: Self-Interest, Sociotropic Politics, and Out-Group Anxiety," International Organization, Cambridge University Press, vol. 63(03), pages 425-457, July.
  13. Bruce A., Blonigen, 2011. "Revisiting the evidence on trade policy preferences," Journal of International Economics, Elsevier, vol. 85(1), pages 129-135, September.
  14. Lloyd A. Metzler, 1949. "Tariffs, the Terms of Trade, and the Distribution of National Income," Journal of Political Economy, University of Chicago Press, vol. 57, pages 1.
  15. Edward J. Balistreri, 1997. "The Performance of the Heckscher-Ohlin-Vanek Model in Predicting Endogenous Policy Forces at the Individual Level," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 1-17, February.
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