Political ideology and endogenous trade policy: An empirical investigation

Pushan Dutt, Devashish Mitra

Research output: Contribution to journalArticle

86 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)59-72
Number of pages14
JournalReview of Economics and Statistics
Volume87
Issue number1
DOIs
StatePublished - Feb 1 2005

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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