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Ideology, Inequality and Inequitable Trade Policies

Author

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  • Djerdjian Daron O

    (American University of Sharjah)

Abstract

Does more wealth inequality lead to more inequitable trade policies? To answer this question, this study develops a political economy model of international trade theory and predicts that in a pro-worker regime, an increase in wealth inequality leads to more equitable trade policies. In a pro-capitalist regime, an increase in wealth inequality leads to more inequitable trade policies. Using cross-country data on political ideology, wealth inequality and different measures of trade policies, this paper finds empirical support for these predictions.

Suggested Citation

  • Djerdjian Daron O, 2007. "Ideology, Inequality and Inequitable Trade Policies," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-26, August.
  • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:39
    DOI: 10.2202/1935-1682.1636
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    References listed on IDEAS

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    1. National Research Council & Institute of Medicine Panel to review the National Children's Study Research Plan of which Allen Schirm is a member, "undated". "Small-Area Estimates of School-Age Children in Poverty: Interim Report 2, Evaluation of Revised 1993 County Estimates for Title I Allocations," Mathematica Policy Research Reports ea76dc09961d429593186b567, Mathematica Policy Research.
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    Cited by:

    1. Subhayu Bandyopadhyay & Suryadipta Roy, 2011. "Political economy determinants of non-agricultural trade policy," Review, Federal Reserve Bank of St. Louis, vol. 93(Mar), pages 89-104.

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