Working Paper: CEPR ID: DP4018
Authors: Kevin H. O'Rourke
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: attitudes; globalization; Heckscher-Ohlin theory; survey data
JEL Codes: F10; F20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| high-skilled individuals in wealthier countries (J61) | support for free trade (F13) |
| high-skilled individuals in poorer countries (F22) | protectionist sentiments (F52) |
| GDP per capita (O49) | negative impact of being high-skilled on protectionist sentiment (F66) |
| anti-immigrant policies (K37) | protectionist sentiments (F52) |
| international mobility (J61) | favorable views towards trade and immigration (F19) |