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Determinants of Individual Trade Policy Preference in the Philippines

  • Liao, Christine Marie
  • Pasadilla, Gloria O.

In a democratic country, economic policies succeed or fail depending on its political support. Open trade policies that were initiated and accepted years ago, in particular, can be reversed, within the limits of the country’s international commitments, depending on the government’s conviction as well as popular pressure. If trade policy were to be subject to a national vote, doubtless, many would show inclination towards greater protectionism. Using ISSP survey data for the Philippines, the paper examines factors that affect individual preferences towards more protectionism as well as towards greater trade liberalization. It finds, surprisingly, that years of education, economic class, employment in public sector, and urban population negatively correlate with pro-trade attitude. In the case of the negative relation of years of education with pro-trade preference, the authors argue that this has its justification in the Hecksher-Ohlin-Samuelson model of trade and factor returns.

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Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2004-16.

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Length: 27
Date of creation: 2004
Date of revision:
Handle: RePEc:phd:dpaper:dp_2004-16
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  1. Kevin H. O'Rourke, 2003. "Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization," The Institute for International Integration Studies Discussion Paper Series iiisdp07, IIIS.
  2. Edward E. Leamer & James Levinsohn, 1994. "International Trade Theory: The Evidence," NBER Working Papers 4940, National Bureau of Economic Research, Inc.
  3. Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
  4. Cororaton, Caesar B., 2003. "Analyzing the Impact of Trade Reforms on Welfare and Income Distribution Using CGE Framework: The Case of the Philippines," Discussion Papers DP 2003-01, Philippine Institute for Development Studies.
  5. Orbeta, Aniceto Jr. C., 2002. "Globalization and Employment: The Impact of Trade on Employment Level and Structure in the Philippines," Discussion Papers DP 2002-04, Philippine Institute for Development Studies.
  6. Donald R. Davis, 1996. "Trade Liberalization and Income Distribution," Harvard Institute of Economic Research Working Papers 1769, Harvard - Institute of Economic Research.
  7. 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.
  8. repec:rus:hseeco:121615 is not listed on IDEAS
  9. 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.
  10. Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494 Elsevier.
  11. 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.
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