Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization

Kevin O'Rourke

No 4018, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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. 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 world.

Keywords: Globalization; Attitudes; Survey data; Heckscher-ohlin theory (search for similar items in EconPapers)
JEL-codes: F10 F20 (search for similar items in EconPapers)
Date: 2003-08
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Citations: View citations in EconPapers (9)

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Working Paper: Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization (2003)
Working Paper: Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization (2003)
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