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Title: Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization

Author(s): Kevin Hjortsh�j O'Rourke

Publication Date: August 2003

Keyword(s): attitudes, globalization, Heckscher-Ohlin theory and survey data

Programme Area(s): International Trade and Regional Economics

Abstract: The aim of the Paper is to see whether individuals? attitudes towards globalization are consistent with the predictions of Heckscher-Ohlin theory. The theory predicts that the impact of being skilled or unskilled on attitudes towards trade and immigration should depend on a country?s skill endowments, with the skilled being less anti-trade and anti-immigration in more skill-abundant countries (here taken to be richer countries) than in more unskilled-labour-abundant countries (here taken to be poorer countries). These predictions are confirmed, using survey data for 24 countries. The high-skilled are pro-globalization in rich countries; while in some of the very poorest countries in the sample being high-skilled has a negative (if statistically insignificant) impact on pro-globalization sentiment. More generally, an interaction term between skills and GDP per capita has a negative impact in regressions, explaining anti-globalization sentiment. Furthermore, individuals view protectionism and anti-immigrant policies as complements rather than as substitutes, as they would do in a simple Heckscher-Ohlin world.

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Bibliographic Reference

O'Rourke, K. 2003. 'Heckscher-Ohlin Theory and Individual Attitudes Towards Globalization'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4018