Abstract
Does an individual’s exposure to aspects of globalization impact their willingness to redistribute to the poor? We hypothesize that the “glitter” of foreign direct investment (FDI) in developing countries leads relatively better-off citizens to perceive that the poor now have more opportunities and are thereby less deserving of help. Findings from an experiment across three states in India reveal that subjects lower their financial support for the poor upon learning a foreign firm in a low-skilled sector is located in the vicinity. Text analysis of subjects’ responses supports the mechanism underlying our hypothesis: FDI reduces support for redistribution when subjects believe that foreign firms offer the uneducated poor higher wages and increased job opportunities.
Get full access to this article
View all access options for this article.
References
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
