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ID131060
Title ProperDoes compensating the losers increase support for trade
Other Title Informationan experimental test of the embedded liberalism thesis
LanguageENG
AuthorEhrlich, Sean D ;  Hearn, Eddie
Publication2014.
Summary / Abstract (Note)The political economy of trade literature argues that compensating those who lose from trade is an important component of maintaining public support for free trade, a linkage known as the compensation hypothesis or embedded liberalism thesis. Previous research has found support for many elements of the causal chain underlying embedded liberalism; however, there has been little research on the most crucial element of the causal chain, namely that compensation policies lead to increased support for trade. This article provides a direct test of the compensation hypothesis using a survey-based experiment conducted in the United States that exposes half of the respondents to knowledge of compensation programs and then asks for their opinion on trade policy. The article explores whether knowledge of compensation increases support for trade as well as who is influenced by this knowledge and, thus, provides a crucial test of the embedded liberalism thesis.
`In' analytical NoteForeign Policy Analysis Vol.10, No.2; April 2014: p.149-164
Journal SourceForeign Policy Analysis Vol.10, No.2; April 2014: p.149-164
Key WordsForeign Policy ;  International Cooperation - IC ;  International Coordination ;  International Relations - IR ;  Liberalism ;  Increase Support ;  Political Support ;  Economic Support ;  United States - US ;  Influences ;  Political Economy ;  Trade Policy ;  Economic Policy