CAFTADR Quiz

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Economics

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Feb 20, 2024

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11 February 2020 CAFTA-DR Quiz 1. the context of trade theories, what explains the economic cleavages in Costa Rica over CAFTA-DR? 2. Hypotheses a. Low-skilled labor should be more likely to support CAFTA-DR than high-skill voters (SS model). b. Export-oriented industries should be most likely to support CAFTA-DR (RV model). c. Controlling for economic factors, the more a party supports/opposes CAFTA-DR, the more likely voters for that party will be to support or oppose CAFTA-DR. d. Controlling for economic factors, the more organized PLN will be better able to get their message out and will therefore have a larger influence on voter preferences than less well-organized parties. 3. The data used was district-level referendum vote returns, low level geographic aggregation, historical anecdotes, degree of party organization, party cueing/framing, and individual-level opinion surveys. 4. Due to the complexity of the agreement, determining the winners and losers might be difficult to determine. Additionally, the researchers dealt with ecological inference problems in which they made inferences about individuals through aggregated data. There was possible endogeneity/omitted variable bias when discussing the relationship between socioeconomic characteristics and party affiliation. 5. Because they found that PLN was in favor of CAFTA-DR, thus confirming that the RV model fits the Costa Rica case. Furthermore, the economic cleavages match those of other developing countries. Additionally, the researchers concluded that the top-down model was more appropriate for the Costa Rica case.
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