Consumer attitudes toward trade liberalization

Abstract

This paper fills an existing gap in the international trade literature by empirically modelling consumer attitudes regarding trade liberalization efforts. Data are taken from the policy response section of a monthly consumer confidence survey, with estimation accomplished using a trinomial logit methodology. Results indicate that uncertainty, import competition risk, cyclical, educational, and demographic factors play significant roles in determining consumer beliefs with respect to trade policy.

Skill and support to globalization in the EU

“…This result is in line with Doyle and Fidrmuc (2005), who also find a U-shaped relationship between age and support for accession to the EU, with an inflection age of 50 years. The elderly might be less likely to oppose globalization because they face lower job and income-uncertainty associated with globalization (Denslow and Fullerton, 1996). Manual worker status reduces the probability of supporting globalization when compared with the self-employed segment of the population, which is the omitted category.…”

“…Denslow and Fullerton (1996) and Mah (2002) contend that educated individuals are more likely to support globalization because they are better able to take advantage of the opportunities and more aware of the beneficial aspects offered by globalization. Feenstra and Hanson (1997) argued that production activities outsourced by firms are relatively unskilled-labour from the skill-abundant countries' perspective, but they use more skilled-labour than other previous production in the low-skill-abundant countries.…”

Explaining Protectionism Support: The Role of Economic Factors

“…e literature focusing on the in�uence of the macroeconomic context on protectionism attitude is scarce. Denslow and Fullerton [8] point to the in�uence of risk aversion on people's attitudes. Using a consumer survey in Florida, they �nd that con�dence about future national performance and education are the most important determinants of consumer attitudes towards trade policy.…”

“…Finally, Denslow and Fullerton [8] show that uncertainty, competition risks, and other cyclical factors play a relevant role in determining people's attitudes towards free trade. Scheve and Slaughter [9] add that labour insecurity (measured by the volatility of wages) tends to favour proprotectionism attitudes.…”