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The Impact of In-group Favoritism on Trade Preferences

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  • Mutz, Diana C.
  • Kim, Eunji

Abstract

Using a population-based survey experiment, this study evaluates the role of in-group favoritism in influencing American attitudes toward international trade. By systematically altering which countries gain or lose from a given trade policy (Americans and/or people in trading partner countries), we vary the role that in-group favoritism should play in influencing preferences. Our results provide evidence of two distinct forms of in-group favoritism. The first, and least surprising, is that Americans value the well-being of other Americans more than that of people outside their own country. Rather than maximize total gains, Americans choose policies that maximize in-group well-being. This tendency is exacerbated by a sense of national superiority; Americans favor their national in-group to a greater extent if they perceive Americans to be more deserving. Second, high levels of perceived intergroup competition lead some Americans to prefer trade policies that benefit the in-group and hurt the out-group over policies that help both their own country and the trading partner country. For a policy to elicit support, it is important not only that the US benefits, but also that the trading partner country loses so that the US achieves a greater relative advantage. We discuss the implications of these findings for understanding bipartisan public opposition to trade.

Suggested Citation

  • Mutz, Diana C. & Kim, Eunji, 2017. "The Impact of In-group Favoritism on Trade Preferences," International Organization, Cambridge University Press, vol. 71(4), pages 827-850, October.
    • Handle: RePEc:cup:intorg:v:71:y:2017:i:04:p:827-850_00
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    Cited by:

    1. Boulu-Reshef, Béatrice & Schulhofer-Wohl, Jonah, 2022. "The impact of distance on parochial altruism: An experimental investigation," European Journal of Political Economy, Elsevier, vol. 75(C).
    2. Liesbet Hooghe & Tobias Lenz & Gary Marks, 2019. "Contested world order: The delegitimation of international governance," The Review of International Organizations, Springer, vol. 14(4), pages 731-743, December.
    3. Erin Lockwood, 2021. "The international political economy of global inequality," Review of International Political Economy, Taylor & Francis Journals, vol. 28(2), pages 421-445, March.
    4. Gazmararian, Alexander F., 2024. "Valuing the Future: Changing Time Horizons and Policy Preferences," OSF Preprints 2m9fy, Center for Open Science.
    5. Barbara Dluhosch, 2021. "The role of perceptions about trade and inequality in the backlash against globalization," SN Business & Economics, Springer, vol. 1(12), pages 1-24, December.
    6. Kiratli, Osman Sabri & Ertan, Sabri Arhan, 2023. "When to Not Respond in Kind? Individuals’ Expectations of the Future and Their Support for Reciprocity in Foreign Policy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Latest Ar, pages 1-1.
    7. Barbara Dluhosch, 2018. "Trade, Inequality, and Subjective Well-Being: Getting at the Roots of the Backlash Against Globalization," LIS Working papers 741, LIS Cross-National Data Center in Luxembourg.
    8. Alrababah, Ala & Casalis, Marine & Masterson, Daniel & Hangartner, Dominik & Wehrli, & Weinstein, Jeremy, 2023. "Reducing Attrition in Phone-based Panel Surveys: A Web Application to Facilitate Best Practices and Semi-Automate Survey Workflow," OSF Preprints gyz3h, Center for Open Science.
    9. Asif Efrat & Abraham L. Newman, 2020. "Intolerant justice: ethnocentrism and transnational-litigation frameworks," The Review of International Organizations, Springer, vol. 15(1), pages 271-299, January.
    10. Philipp Harms & Nils D. Steiner, 2023. "Attitudes towards Globalization: A Survey," Working Papers 2305, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

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