Populism and financial markets

Taking back control over the economy: From economic populism to the economic consequences of populism

“…One of the major lessons that can be learnt from the ideational approach is the highly flexible and adaptable nature of populism. Populism is highly context‐dependent (Hartwell, 2021). The ideational definition can help social scientists along with policy analysts to identify populism across a wide range of countries and contexts, without limiting the study of the phenomenon to any particular set of economic or public policies.…”

Do Trade Agreements Enhance Bilateral Trade? Focus on India and Sri Lanka

“…A notable limitation of our research might be the volatile and evolving landscape of global trade policies in the aftermath of the global financial crisis. The rise of populist leaders in both developed and emerging-market economies, as highlighted by Verner and Gyöngyösi [94]; Heydarian [95]; Hartwell and Devinney [96]; Hartwell [97]; and Gyöngyösi and Verner [98], triggered a wave of protectionism and the termination of multilateral agreements, as pointed out by Paiva et al [99] and Campello et al [100]. This political and economic backdrop significantly complicates the analysis of trade agreements' impact on bilateral trade between India and Sri Lanka.…”

A Responsibility to Whom? Populism and Its Effects on Corporate Social Responsibility

“…In terms of policies that have a pro-business orientation, from a utilitarian point of view, savvy populist regimes are aware that some parts of a country’s private sector are necessary for achieving populist visions. In particular, there is a need for capital to finance works programs or government spending, which then leads to a more laissez-faire approach to the financial sector (Hartwell, 2021). Similarly, under a populist government with an emphasis on “national greatness,” the need for reinvigorating industry and generating jobs may take precedence, with political leaders tolerating or actively encouraging commerce as a means toward national renewal (Chandra & Walton, 2020; Yoshida, 2020).…”

“…In spite of these various mutations, and despite the fact that some populism may be overtly pro-business, populism, in general, generates uncertainty (de Sousa et al, 2021; Hartwell & Devinney, 2021) while at the same time deliberately creating institutional volatility (Hartwell, 2018) in an attempt to change the “rules of the game.” A variety of research has explored the channels by which populism may affect firms, including the effects of protectionism and its disruption of supply chains (Free & Hecimovic, 2021), the ramifications of anti-immigration policies on human resource management in multinational companies (MNCs; Cumming et al, 2020), issues with financing and financial volatility (Stöckl & Rode, 2021), and even overt effects on strategic positioning within the home country (Mbalyohere & Lawton, 2021; Ozawa, 2019). For the most part, the influence of populism is negative overall, although this effect may be evanescent as firms adapt, or, alternatively, the specific effects are highly context-dependent (de Sousa et al, 2021; Hartwell, 2021).…”