New Approaches to the Political and Economic Consequences of Trade Exposure

Session Submission Type: Full Paper Panel

Session Description

This panel draws on innovative theoretical and empirical approaches to examine the political and economic consequences of trade exposure. Despite a recent deceleration in global trade, the impacts of trade exposure appear to become increasingly relevant over time. Trade exposure is influencing individuals across various dimensions: as citizens shaping social attitudes and beliefs, as voters, as consumers, and as members of the productive economy (i.e., workers or producers). Canonical political models of trade, whether grounded in economic factors, sectors, or firm preferences, need to be complemented and adjusted to encompass the diverse consequences of trade exposure. This panel showcases fresh, original research that delves into how individuals exposed to international trade transform their political and institutional preferences, racial attitudes, and consumption choices. Furthermore, it underscores that the trade effects are contingent on the domestic economic and institutional structure such as the characteristics of supply chains. In addition, the papers presented in this panel contribute to an exploration of these issues across both developed and developing countries, shedding light on pertinent questions regarding the regional and economic diverse effects of trade.

Sub Unit

• Division 16: International Political Economy

Chair

• Ryan Brutger University of California, Berkeley

Discussant

• James Hodgdon Bisbee Vanderbilt University

Individual Presentations

• Love of Variety? Heterogeneous Responses to Foreign Goods in the Marketplace - Jude C. Hays, University of Pittsburgh; Valentina Gonzalez-Rostani, Princeton University

• Differential Exposure to Negative Economic Shocks and Racial Resentment - Daniel Jones, University of Pittsburgh; Erica Owen, University of Pittsburgh; Rena Sung, Kyung Hee University

• Firm Contracting and Trade Costs - Timm Betz, Washington University in St. Louis; Søren Frank Etzerodt; Amy Pond, Washington University in St. Louis

• Electoral rules and voting for protection: evidence from the trade wars - Michael Becher, IE UNIVERSIDAD; Irene Menendez, IE University

• The Politics of Consumer Home-Bias: Evidence from Scanner Data in Brazil - Santiago López-Cariboni, Universidad de la República; Paula Martinez, Universidad de la Republica