Endogenous trade policy through majority voting: An empirical investigation

Pushan Dutt, Devashish Mitra

Research output: Contribution to journalArticle

68 Scopus citations

Abstract

The median-voter approach to trade policy determination (within a Heckscher-Ohlin framework) as in Mayer [Am. Econ. Rev. 74(5) (1984) 970] predicts that an increase in inequality, holding constant the economy's overall relative endowments, raises trade barriers in capital-abundant economies and lowers them in capital-scarce economies. We find support for this prediction using cross-country data on inequality, capital-abundance and diverse measures of protection. We perform certain robustness checks that include controlling for the effects of political rights and schooling as well as using alternative datasets on factor endowments.

Original languageEnglish (US)
Pages (from-to)107-133
Number of pages27
JournalJournal of International Economics
Volume58
Issue number1
DOIs
StatePublished - Jul 30 2002
Externally publishedYes

Keywords

  • Inequality
  • Median voter
  • Openness
  • Protection

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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