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  • 1
    Electronic Resource
    Electronic Resource
    Who Rides the Storm? Political Institutions and Trade Adjustment (2007)
    Berkeley, Calif. : Berkeley Electronic Press (now: De Gruyter)
    Business and politics 9.2007, 1, art2 
    Details
    ISSN: 1369-5258
    Source: Berkeley Electronic Press Academic Journals
    Topics: Political Science , Economics
    Notes: Both policymakers and scholars have expressed concern that trade has increased inequality in advanced industrialized countries (AICs). We argue that the impact of trade on inequality depends on the availability of public goods, such as educational opportunities, that allow displaced workers to upgrade their skills and adjust to trade. The provision of public goods, in turn, depends on political institutions: institutions that unify budgetary powers promote public-good spending while institutions that separate budgetary powers discourage it. Trade should thus increase inequality more (reduce inequality less) in countries with a high separation of budgetary powers. We test and find support for these hypotheses with a cross-sectional time-series analysis of fourteen AICs. Our results imply that trade can improve aggregate welfare without worsening economic inequities, but only if governments adopt complementary policies that facilitate human capital formation and labor-market adjustment.
    Type of Medium: Electronic Resource
    URL: http://www.bepress.com/bap/vol9/iss1/art2
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    Paper (German National Licenses)
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  • 2
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    Does Public Opinion Affect Trade Policy? (2008)
    Cambridge University Press
    Details
    Publication Date: 2008-08-01
    Description: Although scholars have begun to explore the determinants of public attitudes toward trade policy, we still do not know whether these attitudes have policy consequences. This paper presents the first systematic analysis of this question. I find that higher public support for free trade leads to lower tariffs, but only in democracies. I also find that democracy leads to lower tariffs only where public support for free trade is relatively high. Hence, although both public opinion and regime type are important, neither matters independently of the other. This finding suggests a need for further research on the conditional effects of both.
    Print ISSN: 1369-5258
    Electronic ISSN: 1469-3569
    Topics: Political Science , Economics
    Published by Cambridge University Press
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  • 3
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    Insuring Free Trade: Unemployment Insurance and Trade Policy (2011)
    Cambridge University Press
    Details
    Publication Date: 2011-10-01
    Description: Research shows that trade openness and high social spending go hand in hand, at least in wealthy democracies. It is not clear, however, exactly why this is so. Many scholars and policymakers argue that generous social spending facilitates trade liberalization, but there is no direct empirical support for this claim. This paper is the first to show directly that social spending promotes freer trade. Specifically, I show that U.S. state-level unemployment insurance makes Congress members significantly more likely to vote for freer trade. Since state unemployment insurance is exogenous to individual congressional votes, my analysis shows clearly that the former affects the latter. My results imply that social spending insures not only citizens but also open trade policies against hard economic times. They also highlight the importance of subnational policy choices to national policy outcomes.
    Print ISSN: 1369-5258
    Electronic ISSN: 1469-3569
    Topics: Political Science , Economics
    Published by Cambridge University Press
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  • 4
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    Who Rides the Storm? Political Institutions and Trade Adjustment (2007)
    Cambridge University Press
    Details
    Publication Date: 2007-04-01
    Description: Both policymakers and scholars have expressed concern that trade has increased inequality in advanced industrialized countries (AICs). We argue that the impact of trade on inequality depends on the availability of public goods, such as educational opportunities, that allow displaced workers to upgrade their skills and adjust to trade. The provision of public goods, in turn, depends on political institutions: institutions that unify budgetary powers promote public-good spending while institutions that separate budgetary powers discourage it. Trade should thus increase inequality more (reduce inequality less) in countries with a high separation of budgetary powers. We test and find support for these hypotheses with a cross-sectional time-series analysis of fourteen AICs. Our results imply that trade can improve aggregate welfare without worsening economic inequities, but only if governments adopt complementary policies that facilitate human capital formation and labor-market adjustment.
    Print ISSN: 1369-5258
    Electronic ISSN: 1469-3569
    Topics: Political Science , Economics
    Published by Cambridge University Press
    Location Call Number Expected Availability
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    PAPER CURRENT
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