Abstract
AbstractWhat factors affect trade preferences? This article focuses on current‐account balances, which despite being de‐emphasized by mainstream economic theory, play an outsized role in political rhetoric regarding the costs and benefits of free trade. This article shows that individual preferences over trade openness reflect the mercantilist belief that when a country is running a current‐account deficit, trade reduces that country's aggregate employment prospects and diminishes its status on the world stage. This article shows that current‐account balances are an important driver of individual trade preferences. The theory's predictions are borne out by hierarchical analysis of cross‐national observational survey data, and further supported by the results of an original survey priming experiment in the United States. These results contribute to a growing literature emphasizing the effect of macroeconomic factors on preferences.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
