A BEJEAP Topics article.

Abstract

Does more wealth inequality lead to more inequitable trade policies? To answer this question, this study develops a political economy model of international trade theory and predicts that in a pro-worker regime, an increase in wealth inequality leads to more equitable trade policies. In a pro-capitalist regime, an increase in wealth inequality leads to more inequitable trade policies. Using cross-country data on political ideology, wealth inequality and different measures of trade policies, this paper finds empirical support for these predictions.

Submitted: June 17, 2006 · Accepted: April 5, 2007 · Published: August 15, 2007

Recommended Citation

Djerdjian, Daron O. (2007) "Ideology, Inequality and Inequitable Trade Policies," The B.E. Journal of Economic Analysis & Policy: Vol. 7 : Iss. 1 (Topics), Article 39.
Available at: http://www.bepress.com/bejeap/vol7/iss1/art39

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