Trade Policy Preferences and Cross-Regional Differences: Evidence from individual-level data of Japan

Author Name ITO Banri (Harvard University / Senshu University) / MUKUNOKI Hiroshi (Gakushuin University) / TOMIURA Eiichi (Faculty Fellow, RIETI) / WAKASUGI Ryuhei (Faculty Fellow, RIETI)
Creation Date/NO. January 2015 15-E-003
Research Project Empirical Analysis of Trade Policy Preferences at the Individual Level in Japan
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This study examines the determinants of individuals' preferences for trade policies, using micro data of 10,000 individuals selected from Japan's general population. In particular, we focus on the role of regional factors that influence trade policy preferences, considering the fact that there is a significant difference in preferences among regions. The results of the binary choice model reveal that local characteristics affect people's views on trade policy even after controlling for labor market and non-economic attributes. Specifically, people residing in a region with a high share of agricultural workers are likely to support import restrictions even if they do not engage in agriculture, which is the most protected sector in Japan. Moreover, there is a strong correlation between the probability of supporting the protectionist trade policy and the share of local agricultural workers for people not considering migration, suggesting that inter-regional immobility of workers affects their trade policy preferences.

This is the English version of the Japanese Discussion Paper (14-J-052) with some additional information and changes.

Published: Ito, Banri, Hiroshi Mukunoki, Eiichi Tomiura, and Ryuhei Wakasugi, 2019. "Trade policy preferences and cross-regional differences: Evidence from individual-level data of Japan," Journal of the Japanese and International Economies, Vol. 51, pp. 99-109