CrabbedOne
Walking sideways snippily
On VoxEU Globalisation and Brexit
This would be a bit ironic as the Three Brexiteers appear mad keen on a brave new world of free trade beyond the somewhat protectionist EU and flooding UK markets with cheap goods. Just as Trump rides in by winning Rust Belt swing states that are convinced that sort of thing is a pointed headed global conspiracy to utterly shaft the white lower orders. It has occurred to me the flyover Red Necks may be a step ahead.
Well it's a theory....
Import competition and attitudes towards immigration
We have not found evidence that higher levels of immigration are significantly related to higher support for Leave. And yet, dissatisfaction with immigration has been identified as one of the most important self-reported reasons for voters supporting the Leave option (Ipsos MORI 2016, Lord Ashcroft 2016). How can we reconcile these pieces of evidence? In our individual-level data, we find evidence that negative attitudes towards immigration are themselves determined by stronger exposure to Chinese imports, more than by the extent of immigration in the region of residence. Overall, regardless of the self-reported reasons for voting Leave, concerns with immigration might be better understood as a scapegoat for a malaise that has more structural economic origins. These are related to large scale economic transformations that inflict disproportionate losses on some sectors of society.
Conclusion
Globalisation, and in particular the Chinese import shock, was a key driver of the vote for Brexit. While free trade has generated significant welfare gains for advanced economies such as the UK, the distribution of these gains has been highly unequal. This has left some social groups and, importantly, some geographic areas, much worse off. Our results suggest that redistribution policies that spread the benefits of globalisation across society are crucial to ensure that globalisation itself is sustainable in the long run.
This would be a bit ironic as the Three Brexiteers appear mad keen on a brave new world of free trade beyond the somewhat protectionist EU and flooding UK markets with cheap goods. Just as Trump rides in by winning Rust Belt swing states that are convinced that sort of thing is a pointed headed global conspiracy to utterly shaft the white lower orders. It has occurred to me the flyover Red Necks may be a step ahead.