Enlightened self-interest : how the national economy, ideology, and anti-Americanism influence public opinion on foreign investment

Abstract

Despite the benefits of economic globalization, popular opposition to foreign investment continues to influence policy debates. What explains opposition to foreign investment? Standard political economy theories suggest that support for international trade, immigration, and investment all depend on the impact these policies have on potential earnings in the labor market. According to standard models, those who stand to benefit economically from international exchange are expected to be more supportive than those who will face increased competition and declining wages. An analysis of four cross-national surveys from 57 countries provides empirical evidence that public opinion on foreign investment is not determined by economic self-interest, but rather by evaluations of the national economy, political ideology, and attitudes about the United States. These findings have implications for understanding the debate over globalization policy and domestic support for further liberalization around the world..