Populism and the economics of globalization

Rodrik, Dani

doi:10.1057/s42214-018-0001-4

Cited by 903 publications

(566 citation statements)

References 64 publications

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“…In line with the political economy and empirical literature on the impact of trade liberalization and trade openness on advanced economies (Milanovic, 2016;Rodrik, 2011Rodrik, , 2017, we argue that economic globalization ceteris paribus has negatively affected the wages and/or employment of non-university educated workers in advanced economies via globalization (or at least radical expansion) of labor markets to include large numbers of relatively low wage workers in developing economies. This literature stresses the negative impact on non-university-educated workers in advanced economies, because these workers are more likely than universityeducated workers to find themselves in direct competition with workers from developing economies.…”

Section: The Political Problem Of Globalization In Advanced Economiessupporting

confidence: 75%

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

Butzbach

Fuller

Schnyder

2020

Global Strategy Journal

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Research Summary There is mounting evidence of a widespread popular backlash against globalization in advanced economies, which can hurt multinational companies' (MNCs) interests. In this article, we argue that MNCs are both “culprits” and “victims” of backlash against globalization. Building on the comparative capitalism literature, we argue that national institutions influence the likelihood of a backlash by either encouraging MNCs to embrace a “labor arbitrage” strategy consisting in tapping into cheap labor markets overseas or preventing them from doing so. Where institutional constraints lead firms to adopt an “upgrading” route of using domestic workers, popular backlash is less likely. Such institutional factors help to explain variation in the likelihood of backlash across countries. We also discuss the strategic options available to firms facing backlash. Managerial Summary Multinational companies are increasingly facing a backlash against globalization that, in some countries, may lead to policies that directly hurt their interests. Yet little is known about the link of this phenomenon with firm‐level strategies. In this article, we draw on comparative capitalism analysis to show that national institutions play a key role in determining the likelihood of backlash. They do so by inducing/discouraging MNCs to adopt certain strategies that expose non‐university‐educated workers to globalization pressures, influencing, in turn, the electorate's attitude toward globalization. We also present and discuss the strategic options available to firms facing backlash.

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Section: The Political Problem Of Globalization In Advanced Economiessupporting

confidence: 75%

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

Butzbach

Fuller

Schnyder

2020

Global Strategy Journal

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“…The perception that there have been significant losers from globalization-and the objective fact that a segment of the population has lost in real as well as relative terms from global changes, have been significant factors not only in the U.S. but across Europe (Rodrik, 2007). This is conflated with opposition to "mass" immigration, further entwined with cultural arguments against "alien" cultures, most notably Islamic immigrant groups, leading to the emergence of anti-globalization movements and the subsequent protectionist policies that are meant to satisfy such movements (Kobrin, 2017;Rodrik, 2018;Stiglitz, 2002Stiglitz, , 2006. This political and rhetorical movement has occurred at a time of retrenchment by significant and salient Western MNEs.…”

Section: The Drivers and Consequences Of Anti-globalization To Mnesmentioning

confidence: 99%

Skepticism toward globalization, technological knowledge flows, and the emergence of a new global system

Buckley

Hashai

2020

Global Strategy Journal

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Research Summary This article examines the potential effect of anti‐globalization on a key attribute of multinational enterprises (MNEs)—the ability to transfer efficiently complex firm‐specific technological knowledge internationally. Anti‐globalization policies can suppress the transfer of complex technological knowledge by limiting the international transfer of intellectual property, restricting the free movement of scientists and engineers or by disharmonizing regulations across nations. Such suppression is shown to significantly change the global system in terms of the location of value‐adding activities, their organizational firm boundaries and the origin of MNEs. The model predicts that after a “shock” of anti‐globalization policies, which significantly increases international technological knowledge flow costs, a smaller number of firm and MNE location and control configurations emerges, and domestic firms become more dominant. Managerial Summary Anti‐globalization policies threaten a key feature of multinational enterprises (MNEs)—the ability to transfer efficiently complex technological knowledge across political borders. They do so through limitations on the international transfer of intellectual property, restrictions on the free movement of scientists and engineers as well as through dis‐harmonization of regulations across nations. We present a model that shows that such limitations are likely to change the global system making it much more similar to the one that existed pre‐WW1 and WW2. The emerging global system is predicted to include a large proportion of domestic firms engaging in international trade and MNEs that locate only a small number of value chain activities abroad.

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“…Eguia and Giovannoni (2019) argue that electorally disadvantaged parties may invest in extremist platforms. Rodrik (2018) empirically associates populism with new issues and distributive conflicts brought about by globalization.…”

Section: Primariesmentioning

confidence: 99%

Crashing the Party? Elites, Outsiders, and Elections

Buisseret

Weelden

2019

American J Political Sci

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We consider an election between two parties that nominate candidates for office. The parties are polarized along a traditional cleavage, but they are also internally divided along a second issue dimension. We introduce a threat of entry from Outsider candidates, who have the prominence and resources to bypass party elites. We consider when voters will turn to Outsiders, and identify the conditions under which Outsiders will enter the election through an established party's nomination process, as opposed to circumventing established parties via a third‐party challenge. We further explore when the elites will fail to respond to the threat of Outsider candidates. Our framework highlights how established parties will be especially vulnerable to Outsider primary entry in periods of intense ideological polarization between the parties, and that this vulnerability is especially heightened for the majority party.

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Populism and the economics of globalization

Cited by 903 publications

References 64 publications

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

Manufacturing discontent: National institutions, multinational firm strategies, and anti‐globalization backlash in advanced economies

Skepticism toward globalization, technological knowledge flows, and the emergence of a new global system

Crashing the Party? Elites, Outsiders, and Elections

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