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Why does import competition favor republicans? Localized trade shocks and cultural backlash in the US

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  • Ferrara, Federico

Abstract

Evidence that local exposure to Chinese import competition favors right-wing parties has often been attributed to the success of economic nationalism. We test an alternative account. Trade shocks catalyze cultural backlash, which drives support for conservative candidates, as they compete electorally by targeting out-groups. We assess this hypothesis in the 2008–2016 US presidential elections. Using individual-level survey data, we provide evidence that Chinese import shocks drive negative attitudes towards minorities and positive feelings towards in-groups. Opinions about free trade and redistribution are not affected. Results indicate that this rightward shift is primarily driven by non-Hispanic white and male respondents. These findings point to the role played by trade-induced cultural backlash in shaping political outcomes in the US.

Suggested Citation

  • Ferrara, Federico, 2023. "Why does import competition favor republicans? Localized trade shocks and cultural backlash in the US," LSE Research Online Documents on Economics 111961, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:111961
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    References listed on IDEAS

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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.

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    Keywords

    T&F deal;

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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