Reports
Discussion Papers
No.855 Who Supports Free Trade in Developing Countries and Why: Comparative Advantage vs the Skill Premium
June 2022
ABSTRACT
Previous studies on free trade preferences in developing countries have shown mixed results thus supporting either model in international trade theory: free trade is favored by unskilled labor (the comparative-advantage model) or skilled labor (the skill-premium model). We apply the synthetic model by Burstein and Vogel while addressing two major issues overlooked in previous research. We distinguish (1) between education levels and occupational categories and (2) between preferences and reasons. Using a survey in Turkey we show that individuals who work in an unskilled occupation but who are better educated tend to favor free trade because of exports.
Keywords: Public opinion, Free trade, Comparative advantage, Skill premium, Turkey, Developing countries
JEL classification:F14, F16, F66
PDF available at http://hdl.handle.net/2344/00053070
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.