Risk, Government and Globalization: International Survey Evidence
31 Pages Posted: 18 Apr 2007
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Risk, Government and Globalization: International Survey Evidence
Risk, Government and Globalization: International Survey Evidence
Risk, Government and Globalization: International Survey Evidence
Date Written: April 2007
Abstract
This paper uses international survey data to document two stylized facts. First, risk aversion is associated with anti-trade attitudes. Second, this effect is smaller in countries with greater levels of government expenditure. The paper thus provides evidence for the microeconomic underpinnings of the argument associated with Ruggie (1982), Rodrik (1998) and others that government spending can bolster support for globalization by reducing the risk associated with it in the minds of voters.
Keywords: Trade attitudes, risk
JEL Classification: F13, F16
Suggested Citation: Suggested Citation
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