Can attitudes towards globalization be explained by who perceive themselves to be losers from trade?

University essay from Lunds universitet/Nationalekonomiska institutionen

Abstract: Several events have occurred recently that can be interpreted as springing from increased anti- globalization attitudes. Given this trend, it is of importance to investigate what causes this opposition. This study therefore analyzes if those who are predicted to be perceived losers from trade, according to the Heckscher-Ohlin trade theory, can explain globalization attitudes. The methodology is based on an econometrical regression which uses data from the 50 U.S states, as well as District of Columbia. The empirical assessment finds significant and robust results for that limited education and exposure to manufacture imports have a negative impact on globalization attitudes. Therefore, it would seem as if perceived losers from trade do affect attitudes in this context. The result suggests the importance of efficiently functioning compensation policies to those negatively affected by trade, where those who are the perceived losers depend on the empirical context in which they occur.

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