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Firm Heterogeneity and Trade-Policy Stances: Evidence from a Survey of Japanese Producers

Plouffe, M; (2017) Firm Heterogeneity and Trade-Policy Stances: Evidence from a Survey of Japanese Producers. Business and Politics , 19 (1) pp. 1-40. 10.1017/bap.2016.6. Green open access

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Abstract

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 market behaviors, especially with respect to firms’ abilities to engage foreign markets. This heterogeneity similarly leads 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 and representative 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. Other producers do not know how they would be impacted by liberalization; these tend to be smaller than their counterparts. The relationship between productivity and pro-trade attitudes is robust, even when controlling for a wide range of internationalization modes.

Type: Article
Title: Firm Heterogeneity and Trade-Policy Stances: Evidence from a Survey of Japanese Producers
Open access status: An open access version is available from UCL Discovery
DOI: 10.1017/bap.2016.6
Publisher version: https://doi.org/10.1017/bap.2016.6
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Political Science
URI: https://discovery.ucl.ac.uk/id/eprint/1516073
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