Found 3 article(s) for author 'protectionism'

Labor Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys

Labor Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys. Rafael Di Tella, Dani Rodrik, January 16, 2019, Paper, “We study preferences for government action in response to layoffs resulting from different types of labor-market shocks. We consider the following shocks: technological change, a demand shift, bad management, and three kinds of international outsourcing. Respondents are given a choice among no government action, compensatory transfers, and trade protection. In response to these shocks, support for government intervention generally rises sharply and is heavily biased towards trade protection. Demand for import protection increases significantly in all cases, except for the “bad management” shock. Trade shocks generate more demand for protectionism, and among trade shocks, outsourcing to a developing country elicits greater demand for protectionism than outsourcing to a developed country. The “bad management” shock is the only scenario that induces a desired increase in compensatory transfers; it is also the only case without a significant increase in desired trade protection. Effects appear to be heterogeneous across subgroups with different political preferences and education. In particular, Trump supporters are more protectionist than Clinton supporters. But preferences seem malleable and easy to manipulate: Clinton supporters primed with trade shocks are as protectionist as baseline Trump voters.Link

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Identity Politics and Trade Policy

Identity Politics and Trade Policy. Elhanan Helpman, October 2, 2018, Paper, “We characterize trade policies that result from political competition when assessments of wellbeing include both material and psychosocial components. The material component reflects, as usual, satisfaction from consumption. Borrowing from social identity theory, we take the psychosocial component as combining the pride and self-esteem an individual draws from the status of groups with which she identities and a dissonance cost she bears from identifying with those that are different from herself.Link

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How To Avoid a Trade War

How To Avoid a Trade War. Dani Rodrik, July 10, 2018, Opinion, “Economists typically argue against focusing excessively on the losers from freer trade, and they decry the tendency to overlook the beneficiaries on the export side. They should not be prone to the same fallacy now, by ignoring that US protectionism surely will generate some beneficiaries as well in other countries.Link

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