International Trade Policy Preferences: Evidence of the Interaction of Socio-tropic Influences and Uncertainty Shocks
Atlantic Economic Journal
This paper provides new evidence supporting the hypothesis that patriotism and nationalism influence personal trade policy preferences in addition to the typical economic determinants. It also examines the interaction of the 9/11 terrorist attacks along with patriotism and nationalism on policy preferences. Using the Heckscher-Ohlin model as a theoretical framework, ordered probit estimations were applied to survey responses from an International Social Survey Program survey question about preferences towards limiting imports. Extensions of the model were sequentially estimated to investigate the impact of national identity on policy preferences. The model was augmented to test how feelings of nationalism and patriotism influenced personal trade policy preferences. Data from the International Social Survey Program surveys administered in 1995/1996 and 2003/2004 also allowed us to reflect on the impact of the 9/11 terrorist attacks on trade preferences in the U.S. We found that prior to the 9/11 attacks, nationalism was associated with increased inclinations towards limiting imports while patriotism had no statistically significant impact on trade preferences. The 9/11 attacks made U.S. survey respondents less open to imports. Further, the 9/11 attacks served to reduce the impact of nationalism on the tendency to limit imports while it enhanced the desire to do so through patriotism.
Daniels, Joseph; Kapszukiewicz, Emily; and Ruhr, Marc von der, "International Trade Policy Preferences: Evidence of the Interaction of Socio-tropic Influences and Uncertainty Shocks" (2020). Economics Faculty Research and Publications. 605.
ADA Accessible Version
Accepted version. Atlantic Economic Journal, Vol. 48 (March 2020): 87-98. DOI. © 2020 Springer Nature Switzerland AG. Used with permission.