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Ideology, Inequality and Inequitable Trade Policies


  • Djerdjian Daron O

    () (American University of Sharjah)


Does more wealth inequality lead to more inequitable trade policies? To answer this question, this study develops a political economy model of international trade theory and predicts that in a pro-worker regime, an increase in wealth inequality leads to more equitable trade policies. In a pro-capitalist regime, an increase in wealth inequality leads to more inequitable trade policies. Using cross-country data on political ideology, wealth inequality and different measures of trade policies, this paper finds empirical support for these predictions.

Suggested Citation

  • Djerdjian Daron O, 2007. "Ideology, Inequality and Inequitable Trade Policies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-26, August.
  • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:39

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    References listed on IDEAS

    1. Ruffle, Bradley J. & Sosis, Richard, 2006. "Cooperation and the in-group-out-group bias: A field test on Israeli kibbutz members and city residents," Journal of Economic Behavior & Organization, Elsevier, vol. 60(2), pages 147-163, June.
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    5. Bradley Ruffle & Richard Sosis, 2003. "Religious ritual and cooperation: Testing for a relationship on israeli religious and secular kibbutzim," Artefactual Field Experiments 00103, The Field Experiments Website.
    6. Jean Ensminger, 1997. "Transaction Costs and Islam: Explaining Conversion in Africa," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(1), pages 1-4, March.
    7. Eli Berman, 2000. "Sect, Subsidy, and Sacrifice: An Economist's View of Ultra-Orthodox Jews," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 905-953.
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