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Who supports Free Trade in Latin America?

Author

Listed:
  • Eugene Beauliue

    (Univeristy of Calgary & International Trade Canada)

  • Ravi Yatawara

    (University of Delaware)

  • Wei Guo Wang

    (University of Calgary)

Abstract

This paper examines individual trade policy preferences across the 17 countries in Latin America. The focus is on whether skilled or unskilled workers are more likely to support liberalized trade and on whether country characteristics, such as factor endowments, alter the preferences of skilled and unskilled workers. Based on the standard Heckscher-Ohlin model and the Stolper-Samuelson theorem, wage inequality in developing countries will decrease under free trade and unskilled workers will benefit. We find that on average skilled workers are more likely than unskilled workers to support free trade in Latin American countries. Separate country regressions reveal that this pattern is only statistically significant in 8 out of 17 Latin American countries. However, there are no countries in our sample in which unskilled workers are statistically more likely to support free trade than skilled workers. Not even in the lowest skill endowed country among our 17 Latin American countries. We also find that people from Latin American countries with higher GDP, faster growth, more cropland, and a longer period of time since reform were more likely on average to support free trade.

Suggested Citation

  • Eugene Beauliue & Ravi Yatawara & Wei Guo Wang, 2005. "Who supports Free Trade in Latin America?," International Trade 0506002, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpit:0506002
    Note: Type of Document - pdf; pages: 24
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/it/papers/0506/0506002.pdf
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    References listed on IDEAS

    as
    1. Eugene Beaulieu, 2002. "Factor or Industry Cleavages in Trade Policy? An Empirical Analysis of the Stolper-Samuelson Theorem," Economics and Politics, Wiley Blackwell, vol. 14(2), pages 99-131, July.
    2. Mayda, Anna Maria & Rodrik, Dani, 2005. "Why are some people (and countries) more protectionist than others?," European Economic Review, Elsevier, vol. 49(6), pages 1393-1430, August.
    3. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4303, Inter-American Development Bank, Research Department.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bernauer, Thomas & Spilker, Gabriele & Umaña, Víctor, 2014. "Different countries same partners: Experimental Evidence on PTA Partner Country Choice from Costa Rica, Nicaragua and Vietnam," Papers 739, World Trade Institute.
    2. Drope Jeffrey & Chowdhury Abdur, 2014. "The puzzle of heterogeneity in support for free trade," Business and Politics, De Gruyter, vol. 16(3), pages 1-27, October.
    3. Jeffrey Drope & Abdur Chowdhury, 2014. "Economic (In)Security and Gender Differences in Trade Policy Attitudes," William Davidson Institute Working Papers Series wp1067, William Davidson Institute at the University of Michigan.
    4. repec:eee:inecon:v:106:y:2017:i:c:p:1-19 is not listed on IDEAS

    More about this item

    Keywords

    Trade policy; Latin America; Stolper-Samuelson theorem;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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