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Does international trade competition influence candidates and voters? The case of Japanese Lower House elections

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  • Kagitani, Koichi
  • Harimaya, Kozo

Abstract

In this study, we explore the effects of regional exposure to manufacturing imports and exports on candidates and voters in national elections through panel data analyses, dealing with the possible endogeneity issues. We show that candidates tailor their stances toward trade policy in response to changes in local trade exposure. Increased manufacturing exports drive candidates to support relatively open trade policies; however, increased manufacturing imports do not influence candidates’ stances on trade policy. We also find that changes in local trade exposure influence citizens’ voting behavior. In districts with increased exports of manufacturing products, voters tend to cast ballots for parties that pledge to promote a free trade agreement as opposed to those that adopt a cautious attitude toward it. In districts that experience increased imports of manufacturing products, voters tend to support parties that are clearly opposed to establishing it. The economic issues related to international trade appear to be important to both candidates and voters in elections.

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  • Kagitani, Koichi & Harimaya, Kozo, 2020. "Does international trade competition influence candidates and voters? The case of Japanese Lower House elections," Journal of the Japanese and International Economies, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:jjieco:v:57:y:2020:i:c:s0889158320300289
    DOI: 10.1016/j.jjie.2020.101091
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    Cited by:

    1. Tomiura, Eiichi & Ito, Banri & Mukunoki, Hiroshi & Wakasugi, Ryuhei, 2021. "Individual characteristics and the demand for reciprocity in trade liberalization: Evidence from a survey in Japan," Japan and the World Economy, Elsevier, vol. 58(C).
    2. Wickes, Ron, 2021. "Trade deficits and trade conflict: The United States and Japan," Japan and the World Economy, Elsevier, vol. 60(C).

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    More about this item

    Keywords

    Trade competition; Trade policy; Election; Candidates’ policy; Voter support;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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