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Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization
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Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization

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  • Kevin 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. Being high-skilled is associated with more pro-globalization attitudes 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, which is what simple Heckscher-Ohlin theory predicts.

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  • Kevin O'Rourke, 2003. "Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization," NBER Working Papers 9872, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:9872
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    2. Kevin H. O'Rourke, 2003. "The Era of Free Migration: Lessons for Today," Trinity Economics Papers 200315, Trinity College Dublin, Department of Economics.
    3. Barbara Dluhosch & Daniel Horgos, 2013. "Trading Up the Happiness Ladder," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 973-990, September.
    4. Hessami, Zohal, 2009. "Globalization's Winners and Losers - Evidence from Life Satisfaction Data, 1975 - 2000," MPRA Paper 26412, University Library of Munich, Germany.
    5. Hessami, Zohal, 2011. "Globalization's winners and losers--Evidence from life satisfaction data, 1975-2001," Economics Letters, Elsevier, vol. 112(3), pages 250-253, September.
    6. Pasadilla, Gloria & Liao, Christine Marie, 2004. "Determinants of Individual Trade Policy Preference in the Philippines," Discussion Papers DP 2004-16, Philippine Institute for Development Studies.
    7. Claudia M. Buch & Jörn Kleinert, 2007. "Multinational Firms and New Protectionisms," IAW Discussion Papers 33, Institut für Angewandte Wirtschaftsforschung (IAW).
    8. Francesc Ortega, 2004. "Immigration and the survival of the welfare state," Economics Working Papers 815, Department of Economics and Business, Universitat Pompeu Fabra.
    9. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement: Paper Presented at the 41st Economic Policy Panel in Luxembourg, 15/16 April 2005," Discussion Papers of DIW Berlin 481, DIW Berlin, German Institute for Economic Research.
    10. Timothy J. Hatton & Jeffrey G. Williamson, 2005. "A Dual Policy Paradox: Why Have Trade and Immigration Policies Always Differed in Labor-Scarce Economies," NBER Working Papers 11866, National Bureau of Economic Research, Inc.
    11. J. Broz, 2008. "Congressional voting on funding the international financial institutions," The Review of International Organizations, Springer, vol. 3(4), pages 351-374, December.
    12. Nuno Limão & Arvind Panagariya, 2018. "Inequality and endogenous trade policy outcomes," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 8, pages 237-254, World Scientific Publishing Co. Pte. Ltd..
    13. Clair Brown & Julia Lane & Timothy Sturgeon, 2013. "Workers' Views of the Impact of Trade on Jobs," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(1), pages 1-21, January.
    14. Tito Boeri, 2010. "Immigration to the Land of Redistribution," Economica, London School of Economics and Political Science, vol. 77(308), pages 651-687, October.
    15. Ina Jäkel & Marcel Smolka, 2013. "Individual Attitudes Towards Trade: Stolper-Samuelson Revisited," Open Economies Review, Springer, vol. 24(4), pages 731-761, September.
    16. Binagwaho, Agnes & Hartwig, Renate & Ingeri, Denyse & Makaka, Andrew, 2012. "Mutual health insurance and its contribution to improving child health in Rwanda," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-66-12, University of Passau, Faculty of Business and Economics.
    17. Boeri, Tito & Brücker, Herbert, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute of Labor Economics (IZA).
    18. Teng, Faxin, 2008. "Warum sind manche Individuen und Länder protektionistischer als andere? [Why Are Some People and Countries More Protectionist than Others?]," MPRA Paper 31958, University Library of Munich, Germany.
    19. Nur Feriyanto, 2012. "Employment effect of Indonesia’s non-oil export," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(2), pages 211-221, April.

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    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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