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Populism and the Economics of Globalization

Dani Rodrik

NBER Working Paper No. 23559
Issued in June 2017, Revised in July 2017
NBER Program(s):International Finance and Macroeconomics Program, International Trade and Investment Program, Political Economy Program

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.

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Document Object Identifier (DOI): 10.3386/w23559

Published: Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, vol 1(1-2), pages 12-33.

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