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Political Ideology and Endogenous Trade Policy: An Empirical Investigation

Year: 2002
Type: report
Abstract: In this paper, we empirically investigate how government ideology affects trade policy.The prediction of a partisan, ideology-based model (within a two-sector, two-factor Heckscher-Ohlin framework) is that left-wing governments will adopt more protectionist trade policies in capital rich countries, but adopt more pro-trade policies in labor rich economies than right-wing ones.The data strongly support this prediction in a very robust fashion.There is some evidence, that this relationship may hold better in democracies than in dictatorships though the magnitude of the partisan effect seems stronger in dictatorships.
Language: English
Open Access status: green
OpenAlex ID: W2111783247
Cites: 44
Cited by: 33
Related to: 10