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Trade Policy Preferences and Cross-Regional Differences: Evidence from individual-level data of Japan

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  • ITO Banri
  • MUKUNOKI Hiroshi
  • TOMIURA Eiichi
  • WAKASUGI Ryuhei

Abstract

This study examines the determinants of individuals' preferences for trade policies, using micro data of 10,000 individuals selected from Japan's general population. In particular, we focus on the role of regional factors that influence trade policy preferences, considering the fact that there is a significant difference in preferences among regions. The results of the binary choice model reveal that local characteristics affect people's views on trade policy even after controlling for labor market and non-economic attributes. Specifically, people residing in a region with a high share of agricultural workers are likely to support import restrictions even if they do not engage in agriculture, which is the most protected sector in Japan. Moreover, there is a strong correlation between the probability of supporting the protectionist trade policy and the share of local agricultural workers for people not considering migration, suggesting that inter-regional immobility of workers affects their trade policy preferences.

Suggested Citation

  • ITO Banri & MUKUNOKI Hiroshi & TOMIURA Eiichi & WAKASUGI Ryuhei, 2015. "Trade Policy Preferences and Cross-Regional Differences: Evidence from individual-level data of Japan," Discussion papers 15003, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:15003
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    Cited by:

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    2. Banri Ito, 2021. "Trade exposure and electoral protectionism: evidence from Japanese politician-level data," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 181-205, February.
    3. Tomiura, Eiichi & Ito, Banri & Mukunoki, Hiroshi & Wakasugi, Ryuhei, 2021. "Individual characteristics and the demand for reciprocity in trade liberalization: Evidence from a survey in Japan," Japan and the World Economy, Elsevier, vol. 58(C).
    4. Leonid Aleksandrovich Bragin & Svetlana Viktoronva Panasenko & Alexander Fedorovich Nikishin & Svetlana Borisovna Aleksina & Anastasiya Vladimirovna Boykova, 2019. "Regional aspects of the development of the cheese market in terms of the trend of healthy nutrition," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 626-636, September.
    5. Ito, Banri & Tanaka, Ayumu & Jinji, Naoto, 2023. "Why do people oppose foreign acquisitions? Evidence from Japanese individual-level data," Japan and the World Economy, Elsevier, vol. 66(C).
    6. Gabriel Felbermayr & Toshihiro Okubo, 2022. "Individual preferences on trade liberalization: evidence from a Japanese household survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 305-330, February.
    7. Wickes, Ron, 2021. "Trade deficits and trade conflict: The United States and Japan," Japan and the World Economy, Elsevier, vol. 60(C).
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    9. Kagitani, Koichi & Harimaya, Kozo, 2017. "Electoral motives, constituency systems, ideologies, and a free trade agreement: The case of Japan joining the Trans-Pacific Partnership negotiations," Journal of the Japanese and International Economies, Elsevier, vol. 45(C), pages 51-66.
    10. Ito, Banri, 2015. "Does electoral strength affect politician's trade policy preferences? Evidence from Japan," MPRA Paper 62525, University Library of Munich, Germany.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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