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The Impact of In-group Favoritism on Trade Preferences

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  • Mutz, Diana C.
  • Kim, Eunji

Abstract

Using a population-based survey experiment, this study evaluates the role of in-group favoritism in influencing American attitudes toward international trade. By systematically altering which countries gain or lose from a given trade policy (Americans and/or people in trading partner countries), we vary the role that in-group favoritism should play in influencing preferences. Our results provide evidence of two distinct forms of in-group favoritism. The first, and least surprising, is that Americans value the well-being of other Americans more than that of people outside their own country. Rather than maximize total gains, Americans choose policies that maximize in-group well-being. This tendency is exacerbated by a sense of national superiority; Americans favor their national in-group to a greater extent if they perceive Americans to be more deserving. Second, high levels of perceived intergroup competition lead some Americans to prefer trade policies that benefit the in-group and hurt the out-group over policies that help both their own country and the trading partner country. For a policy to elicit support, it is important not only that the US benefits, but also that the trading partner country loses so that the US achieves a greater relative advantage. We discuss the implications of these findings for understanding bipartisan public opposition to trade.

Suggested Citation

  • Mutz, Diana C. & Kim, Eunji, 2017. "The Impact of In-group Favoritism on Trade Preferences," International Organization, Cambridge University Press, vol. 71(4), pages 827-850, October.
    • Handle: RePEc:cup:intorg:v:71:y:2017:i:04:p:827-850_00
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    Cited by:

    1. Philipp Harms & Nils D. Steiner, 2023. "Attitudes towards Globalization: A Survey," Working Papers 2305, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    2. Boulu-Reshef, Béatrice & Schulhofer-Wohl, Jonah, 2022. "The impact of distance on parochial altruism: An experimental investigation," European Journal of Political Economy, Elsevier, vol. 75(C).
    3. Erin Lockwood, 2021. "The international political economy of global inequality," Review of International Political Economy, Taylor & Francis Journals, vol. 28(2), pages 421-445, March.
    4. Barbara Dluhosch, 2021. "The role of perceptions about trade and inequality in the backlash against globalization," SN Business & Economics, Springer, vol. 1(12), pages 1-24, December.
    5. Liesbet Hooghe & Tobias Lenz & Gary Marks, 2019. "Contested world order: The delegitimation of international governance," The Review of International Organizations, Springer, vol. 14(4), pages 731-743, December.
    6. Kiratli, Osman Sabri & Ertan, Sabri Arhan, 2023. "When to Not Respond in Kind? Individuals’ Expectations of the Future and Their Support for Reciprocity in Foreign Policy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Latest Ar, pages 1-1.
    7. Barbara Dluhosch, 2018. "Trade, Inequality, and Subjective Well-Being: Getting at the Roots of the Backlash Against Globalization," LIS Working papers 741, LIS Cross-National Data Center in Luxembourg.
    8. Alrababah, Ala & Casalis, Marine & Masterson, Daniel & Hangartner, Dominik & Wehrli, & Weinstein, Jeremy, 2023. "Reducing Attrition in Phone-based Panel Surveys: A Web Application to Facilitate Best Practices and Semi-Automate Survey Workflow," OSF Preprints gyz3h, Center for Open Science.
    9. Asif Efrat & Abraham L. Newman, 2020. "Intolerant justice: ethnocentrism and transnational-litigation frameworks," The Review of International Organizations, Springer, vol. 15(1), pages 271-299, January.

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