3,468 research outputs found

    Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization

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    The aim of the paper is to see whether individuals’ attitudes towards globalization are consistent with the predictions of Heckscher-Ohlin theory. The theory predicts that the impact of being skilled or unskilled on attitudes towards trade and immigration should depend on a country’s skill endowments, with the skilled being less anti-trade and antiimmigration in more skill-abundant countries (here taken to be richer countries) than in more unskilled-labour-abundant countries (here taken to be poorer countries). These predictions are confirmed, using survey data for 24 countries. The high-skilled are pro-globalization in rich countries; while in some of the very poorest countries in the sample being high-skilled has a negative (if statistically insignificant) impact on pro-globalization sentiment. More generally, an interaction term between skills and GDP per capita has a negative impact in regressions explaining anti-globalization sentiment. Furthermore, individuals view protectionism and anti-immigrant policies as complements rather than as substitutes, as they would do in a simple Heckscher-Ohlin worldglobalization, attitudes, survey data, Hecksher-Ohlin theory.

    Heckscher-Ohlin Theory and Individual Attitudes Towards GlobalisationInternational Financial Integration

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    The aim of the paper is to see whether individuals' attitudes towards globalisation are consistent with the predictions of Heckscher-Ohlin theory. The theory predicts that the impact of being skilled or unskilled on attitudes towards trade and immigration should depend on a country's skill endowments, with the skilled being less anti-trade and anti-immigration in more skill-abundant countries (here taken to be richer countries) than in more unskilled-labour-abundant countries (here taken to be poorer countries). These predictions are confirmed, using survey data for 24 countries. The high-skilled are pro-globalisation in rich countries; while in some of the very poorest countries in the sample being high-skilled has a negative (if statistically insignificant) impact on pro-globalisation sentiment. More generally, an interaction term between skills and GDP per capita has a negative impact in regressions explaining anti-globalisation sentiment. Furthermore, individuals view protectionism and anti-immigration policies as complements rather than as substitutes, as they would do in a simple Heckscher-Ohlin world.

    Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization

    Get PDF
    The aim of the paper is to see whether individuals' attitudes towards globalization are consistent with the predictions of Heckscher-Ohlin theory. The theory predicts that the impact of being skilled or unskilled on attitudes towards trade and immigration should depend on a country's skill endowments, with the skilled being less anti-trade and anti-immigration in more skill-abundant countries (here taken to be richer countries) than in more unskilled-labour-abundant countries (here taken to be poorer countries). These predictions are confirmed, using survey data for 24 countries. Being high-skilled is associated with more pro-globalization attitudes in rich countries; while in some of the very poorest countries in the sample being high-skilled has a negative (if statistically insignificant) impact on pro-globalization sentiment. More generally, an interaction term between skills and GDP per capita has a negative impact in regressions explaining anti-globalization sentiment. Furthermore, individuals view protectionism and anti-immigrant policies as complements rather than as substitutes, which is what simple Heckscher-Ohlin theory predicts.

    Predicting the Pattern of International Trade in the Neoclassical Model: A Synthesis

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    I propose a framework that takes a set of conceivable outcomes as the primitive and a prediction is defined by identifying a subset on the set of conceivable outcomes. This notion of predictability serves as an organizing principle for characterizing pattern of trade predictions in single economy and integrated equilibrium formulations of the neoclassical trade model. I identify allocative efficiency as the unifying subset selection criterion for the different formulations of the neoclassical trade model, ranging from Ricardo’s (1817) original comparative advantage formulation to the multi-cone Heckscher-Ohlin specification with multiple countries, goods and factors.Predictability, pattern of trade, neoclassical model

    The Empirics of General Equilibrium Trade Theory: What Have We Learned?

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    This paper provides a selective survey of over half a century of research linking the neoclassical trade model to the data. Tensions between restrictive formulations of the model and real world complexities have launched a research agenda aimed at refining and reformulating theory to provide more convincing links between theoretical specification and empirical research design. Three lessons stand out. First, competitive and new trade theory models are complementary rather than competing ways to look at many existing empirical regularities. Second, the Ricardian formulation has proved to be a useful framework for structural estimation exercises regarding the pattern of international specialization. Third, empirical confirmations of the core predictions of the model provide scientific support for employing the competitive trade model in structural estimation.neoclassical trade theory, estimation and testing of trade theories.

    The Determinants of Individual Attitudes Towards Immigration

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    The paper uses a cross-country dataset to investigate the determinants of individual attitudes towards immigration.  There are three main conclusions.  The first is that attitudes towards immigration are not a function of economic interests alone; rather, they also reflect nationalist sentiment among respondents.  The second is that for labour market participants, standard economic theory does a good job of predicting individual attitudes towards immigration.  The high-skilled are less opposed to immigration than the low-skilled, and this effect is greater in richer countries than in poorer countries, consistent with Heckscher-Ohlin theory; and in more equal countries than in more unequal ones (consistent with the Borjas theory of immigrant self-selection).  On the other hand, non-economic factors are much more important in determining the attitudes of those not in the labour force.

    The Factor Content of Trade

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    Study of the factor content of trade has become a laboratory to test our ideas about how the key elements of endowments, production, absorption and trade fit together within a general equilibrium framework. Already a great deal of progress has been made in fitting these pieces together. Nevertheless, the existing research raises a great many questions that should help to focus empirical research in the coming years. Among the more pressing issues is a deeper consideration of the role of intermediates, the role of aggregation biases, and of differences in patterns of absorption. This work should provide a more substantial foundation for future policy work developed within a factor content framework.

    The application of trade and growth theories to agriculture: a survey

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    This article reviews a broad range of theoretical concepts available to explain international trade in agricultural and food products. For many years agricultural trade analyses were largely based on traditional perceptions of comparative advantage following neoclassical theory. Observations of agricultural trade suggest, however, that concepts from modern trade and growth theories are increasingly relevant. This survey demonstrates that many opportunities exist for applying these new theories to the modern food economy.International Development, International Relations/Trade,
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