Ideology, Inequality and Inequitable Trade Policies

Djerdjian Daron O ()
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Djerdjian Daron O: American University of Sharjah

The B.E. Journal of Economic Analysis & Policy, 2007, vol. 7, issue 1, 26

Abstract: Does more wealth inequality lead to more inequitable trade policies? To answer this question, this study develops a political economy model of international trade theory and predicts that in a pro-worker regime, an increase in wealth inequality leads to more equitable trade policies. In a pro-capitalist regime, an increase in wealth inequality leads to more inequitable trade policies. Using cross-country data on political ideology, wealth inequality and different measures of trade policies, this paper finds empirical support for these predictions.

Keywords: trade policy; ideology; inequality; protection; welfare (search for similar items in EconPapers)
Date: 2007
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DOI: 10.2202/1935-1682.1636

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