Why Does Globalization Fuel Populism? Economics, Culture, and the Rise of Right-wing Populism

By Dani Rodrik. Annual Review of Economics, 2020

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There is compelling evidence that globalization shocks, often working through culture and identity, have played an important role in driving up support for populist movements, particularly of the right-wing kind. I start with an empirical analysis of the 2016 presidential election in the United States to show that globalization-related attitudinal variables were important correlates of the switch to Trump. I then provide a conceptual framework that identifies four distinct channels through which globalization can stimulate populism, two each on the demand and supply sides of politics. I evaluate the empirical literature with the help of this framework, discussing trade, financial globalization, and immigration separately. I conclude the review by discussing some apparently anomalous cases in which populists have been against, rather than in favor of, trade protection.

Subfields: Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/fbcc71eef923dbbd1d0d95ca15ee99942ebff9f4

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