Firm Heterogeneity and Trade-Policy Stances: Evidence from a Survey of Japanese Producers

30 Pages Posted: 10 Feb 2016  

Michael Plouffe

School of Public Policy, University College London

Date Written: February 10, 2016

Abstract

Recent research in international political economy has begun to explore the implications of producer heterogeneity for trade politics. Variations in productivity and size lead to systematic variations in both market and political behaviors. These similarly lead to systematic variations in policy stances: highly productive firms are more likely to favor trade liberalization than their less productive counterparts. I test the role of firm heterogeneity on trade-policy stances using original survey data of Japanese manufacturers. I find that highly productive firms are more likely to favor liberalization than others, while a large portion of producers is indifferent to trade-policy reform. The relationship between productivity and pro-trade attitudes is robust, even when controlling for a wide range of internationalization methods.

Keywords: Firm heterogeneity, Japanese economy, Survey analysis, Trade policy

JEL Classification: D21, D22, F12, F13, F14, F50

Suggested Citation

Plouffe, Michael, Firm Heterogeneity and Trade-Policy Stances: Evidence from a Survey of Japanese Producers (February 10, 2016). Available at SSRN: https://ssrn.com/abstract=2730515

Michael Plouffe (Contact Author)

School of Public Policy, University College London ( email )

29/30 Tavistock Square
London, WC1H 9QU
United Kingdom

Paper statistics

Downloads
13
Abstract Views
78