Geography, International Trade, and Political Mobilization in U.S. Industries

Abstract

posed industries, geographic concentration strongly increases (a) the formation of common trade policy preferences among workers; (b) employees' contributions to political campaigns; and (c) voter turnout. This activism traces not to the behavior of political elites, but rather to the increased possibility for collective action that spatial proximity affords individuals in trade-exposed industries. ,eS ~ eography is everywhere in vogue. From studies of Silicon Valley effects and industrial agglomeration (Audretsch 1998; Dyer 1994) to the pricing practices of monopolies, from corporate alliances to regional economic development (Porter 1998), the spatial proximity of firms is shedding new light on some of the most enduring puzzles in business and economics. Yet despite this interest in industrial clusters, few studies have asked-and fewer still have empirically assessed-how spatial proximity conditions an industry's political behavior. This link is particularly important for sectors exposed to international trade, given the longstanding debate over how geographic concentration affects an industry's ability to secure import relief. Recent studies (Busch and Reinhardt 1999; McGiliivray 1997) find that spatially proximate industries are, indeed, more successful in gaining protection, although the mechanisms by which they exert greater political influence remain little understood. We seek to explain how geographic concentration facilitates political mobilization on the part of trade-exposed industries. Geographic concentration bolsters an industry's capacity for collective action. In particular, as a wide variety of literatures insists, spatial proximity facilitates greater face-to-face communication, aids in the diffusion of specialized political knowledge, provides the basis for denser social networks, and enables more effective monitoring and sanctioning of those who might free-ride on the political contributions of others. In short, individuals in geographically concentrated groups are more likely to recognize and act upon their collective interests. Yet spatial proximity alone is not sufficient to motivate political mobilization: underlying common interests must exist as well. Looking at manufacturing industries, we hypothesize