Firm Heterogeneity and Trade-Policy Stances: Evidence from a Survey of Japanese Producers
30 Pages Posted: 10 Feb 2016
Date Written: February 10, 2016
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: Suggested Citation