Societal Explanations of Trade Politics

Societal Explanations of Trade Politics - 2 March Societal...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
2 March: Societal explanations of trade politics I. Trade politics Even though trade helps society as a whole, it distributional impact on different groups varies. Which of these groups are most important in trade politics? How do they interact with institutions? Rogowski (1987) looks at how the level of trade changes the coalitions that form within countries. (That is, he’s providing an international economic explanation for a domestic societal outcome.) Starting from the Stolper-Samuelson framework, Rogowski assumes three factors of production: land, labor, and capital. In his basic model, either land or labor is abundant; rich countries are capital-abundant and poor countries are capital-scarce. Since every factor that is abundant (or scarce) has the same interest with respect to international economic policies, abundant (scarce) factors join together. So a rich, sparsely populated country would have class conflict, with land and capital owners joining together to favor trade against the protectionist laboring class. A rich, densely populated country would have urban/rural conflict, with laborers and capitalists banding together against protectionist landowners. Knowing these coalition patterns might illuminate trade preferences and, indirectly, policy outcomes – though of course it is implausible that trade organizes all domestic politics. Oatley presents both factor and sector models of trade policy. The factor model is simply the Heckscher- Ohlin/Stolper-Samuelson model: the abundant factor favors trade, the scarce factor closure.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern