International Trade and Political Conflict (Trade, Alliances, and the Degree of Factor Mobility)

Author: (American) Michael Heckscher, edited by Hai Wen, translated by Yu Yangjie
Publisher:
Publish Date: 2005-05-01
Features: In the field of political economy, the debate over whether class conflict or industry group competition plays the dominant role in political conflicts has long been ongoing. This book presents a compelling new perspective on this issue. It summarizes under what conditions one type of political conflict is more likely to occur than another, going deeper and further than all previous research in this field. Michael Heckscher focuses on a critical factor influencing people's attitudes toward free trade—the degree of factor mobility, or the ability of owners of factors of production (land, labor, or capital) to transfer factors between industries. He points out that the form of political alliances that will emerge in trade conflicts largely depends on the degree of factor mobility between industries. Heckscher demonstrates that when factor mobility is high, class alliances are more likely to form; whereas when factor mobility is low, narrow, industry-based alliances become the mainstream. The book also provides systematic evidence from the trade politics of six Western countries over nearly two centuries to support its theory, combining case studies and quantitative analysis to open up new avenues for research. The book draws entirely new conclusions about the impact of trade policies, offering profound insights into the possible evolutionary direction of the global trade system—especially regarding the trade policies of the United States. International Trade and Political Conflict is a significant contribution to academia, and all those interested in understanding and predicting the development of trade policies should read it.