Globalization and Redistribution Towards the Poor in Developing Countries: Experimental Evidence from India

Sera Linardi () and Nita Rudra

Artefactual Field Experiments from The Field Experiments Website

Abstract: Can globalization change our willingness to redistribute to the poor? We propose the hypothesis that in developing countries, the 'glitter' of foreign direct investment (FDI) reduces public support for redistribution by creating perceptions of better employment opportunities for the poor. Initial evidence is derived from World Value Survey responses from developing economies. Delving deeper, a framed field experiment in India reveals foreign ownership of low-skilled firms reduces redistribution to the poor. We further find that rich conservatives drive this reduction. This analysis provides the first experimental evidence of the causal impact of globalization on redistribution, mediated by ideology and income.

Date: 2015
New Economics Papers: this item is included in nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:feb:artefa:00399

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