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Are individuals' attitudes towards globalization consistent with the predictions of the Heckscher-Ohlin (HO) theory? Using newly available data from the Flash Eurobarometer 151b of the European Commission, we find that globalization preferences are significantly and robustly correlated with an individual's relative level of human capital, consistent with the HO theory. The impact of skill on globalization preferences is positive in skill-abundant EU countries and strongly negative in EU countries that are well-endowed with low-skill labour. This study is the first to find a robust and significant negative association between skill and support to globalization in low-skill-abundant countries. [ABSTRACT FROM AUTHOR]

Globalization and growth-maximizing governments may cause countries to converge toward a similar composition of government expenditures. These convergent forces may be even more intensive in the case of EU member states engaged in the European integration process. The results obtained, through calculation of a constructed dissimilarity index and by adapting the usual indicators of convergence (β, σ, and γ), reveal that there has been a harmonization process. In addition, this approximation of the structures of government expenditures has been greater in the EU than in the non-EU countries of the OECD. Nevertheless, EU member states are converging toward a different steady-state composition of government expenditures. [ABSTRACT FROM AUTHOR]

The ‘compensation’ and ‘efficiency’ hypotheses propose that globalization affects both the total, and composition of, public expenditures in different ways. Under the former, economic insecurity leads to expanding public sectors and social expenditures, whereas under the efficiency hypothesis, demands for lower taxes encourage smaller public sectors, and especially ‘privately productive’ spending. We test these hypotheses for a sample of OECD countries from 1980–1997. Using both the inward stock of FDI and openness as measures of globalization we find no effect on the size of government, but FDI significantly shifts the expenditure composition towards social spending, favouring the compensation hypothesis. [Copyright &y& Elsevier]