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Who supports Free Trade in Latin America?

  • Eugene Beauliue

    (Univeristy of Calgary & International Trade Canada)

  • Ravi Yatawara

    (University of Delaware)

  • Wei Guo Wang

    (University of Calgary)

Registered author(s):

    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.

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    File URL: http://128.118.178.162/eps/it/papers/0506/0506002.pdf
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    Paper provided by EconWPA in its series International Trade with number 0506002.

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    Length: 24 pages
    Date of creation: 04 Jun 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpit:0506002
    Note: Type of Document - pdf; pages: 24
    Contact details of provider: Web page: http://128.118.178.162

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    1. Anna Maria Mayda (Georgetown University) and Dani Rodrik (Harvard University), 2005. "Why are some people (and countries) more protectionist than others?," Working Papers gueconwpa~05-05-11, Georgetown University, Department of Economics.
    2. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4301, Inter-American Development Bank, Research Department.
    3. 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, 07.
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