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Populism and the Economics of Globalization

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  • Rodrik, Dani

Abstract

Populism may seem like it has come out of nowhere, but it has been on the rise for a while. I argue that economic history and economic theory both provide ample grounds for anticipating that advanced stages of economic globalization would produce a political backlash. While the backlash may have been predictable, the specific form it took was less so. I distinguish between left-wing and right-wing variants of populism, which differ with respect to the societal cleavages that populist politicians highlight. The first has been predominant in Latin America, and the second in Europe. I argue that these different reactions are related to the relative salience of different types of globalization shocks.

Suggested Citation

  • Rodrik, Dani, 2017. "Populism and the Economics of Globalization," CEPR Discussion Papers 12119, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12119
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    Keywords

    Globalization; populism;

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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