"Does Economic Globalization Influence the U.S. Policy Mood?: A Study of U.S. Public

September 2013 Does increasing economic globalization influence aggregate policy mood toward the role and size of government in the U.S? Drawing on insights from IPE scholarship, we suggest that the impact of trade on aggregate preferences will depend on citizens' exposure to trade. We hypothesize that employees of import-competing, export-oriented and multinational firms will adopt a 'compensatory' model whereby higher levels of imports (exports) lead to a liberal (conservative) shift in policy preferences for more (less) government. We distinguish between intrafirm and non-intrafirm trade flows. We measure policy mood using Stimson's 'Mood', and estimate Error Correction and Instrumental Variable models. Trade flows strongly influence Mood in a manner consistent with hypotheses drawn from IPE and Heterogeneous Firms trade theory.