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The Political Effects of Trade with Japan in the 1980s

Author

Listed:
  • Shuichiro Nishioka

    (West Virginia University, Department of Economics)

  • Eric Olson

    (The University of Tulsa)

Abstract

The 1974 trade act substantially increased the executive branch's authority in trade negotiations through the granting of fast-track and Section 301 authority. This paper evaluates the effect on U.S. voting behavior resulting from trade with Japan over 1976-1992 time period after the act was passed. To capture U.S. trade exposures to Japan, we develop the Bartik index from Autor et al (2013) for import competition with Japan and show that local exposure to import competition had statistically significant negative impacts on Republican presidential candidates over the 1976-1984 period. Although the second Reagan administration used Section 301 to open Japan's markets and Japanese firms shifted production to the United States, job-creation effects of exports and foreign direct investment did not have any influence on voting outcomes.

Suggested Citation

  • Shuichiro Nishioka & Eric Olson, 2022. "The Political Effects of Trade with Japan in the 1980s," Working Papers 22-04, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:22-04
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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1060&context=econ_working-papers
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade exposure; U.S. trade with Japan in the 1980s; U.S. presidential elections;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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