TY - JOUR
T1 - Political ideology and endogenous trade policy
T2 - An empirical investigation
AU - Dutt, Pushan
AU - Mitra, Devashish
PY - 2005/2
Y1 - 2005/2
N2 - In this paper, we investigate empirically 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 countries, 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.
AB - In this paper, we investigate empirically 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 countries, 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.
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U2 - 10.1162/0034653053327621
DO - 10.1162/0034653053327621
M3 - Article
AN - SCOPUS:15944404665
SN - 0034-6535
VL - 87
SP - 59
EP - 72
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 1
ER -