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

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  • Dani Rodrik

    (John F. Kennedy School of Government, Harvard University, Cambridge, Massachusetts 02138, USA)

Abstract

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.

Suggested Citation

  • Dani Rodrik, 2021. "Why Does Globalization Fuel Populism? Economics, Culture, and the Rise of Right-Wing Populism," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 133-170, August.
    • Handle: RePEc:anr:reveco:v:13:y:2021:p:133-170
    DOI: 10.1146/annurev-economics-070220-032416
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    Keywords

    globalization; populism;

    JEL classification:

    • F0 - International Economics - - General

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