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Understanding the Origins of Populist Political Parties and the Role of External Shocks

Author

Listed:
  • Eugenio Levi

    (Masaryk University)

  • Isabelle Sin

    (Motu Economic and Public Policy Research)

  • Steven Stillman

    (Free University of Bozen-Bolzano, CESifo, IZA)

Abstract
We use electoral survey data to examine the impact that two large external shocks had on the development of New Zealand First (NZF), one of the oldest populist parties in the OECD. We find that structural reforms, which led to large negative impacts on particular locations, and immigration reforms, which led to large spatially concentrated increases in skilled migration, both increased voting for NZF in its first years of existence. These shocks led to changes in political attitudes and policy preferences and had persistent effects on voting for NZF even twenty years later. Overall, they play an important role in explaining the rise of populism in NZ. Understanding how these shocks led to the development of NZF is particularly relevant for thinking about how populism has been extending its reach in the 2010s.

Suggested Citation

  • Eugenio Levi & Isabelle Sin & Steven Stillman, 2021. "Understanding the Origins of Populist Political Parties and the Role of External Shocks," MUNI ECON Working Papers 2021-10, Masaryk University, revised Feb 2023.
    • Handle: RePEc:mub:wpaper:2021-10
    DOI: 10.5817/WP_MUNI_ECON_2021-10
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    as
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    1. Jakub Grossmann & Stepan Jurajda, 2023. "Voting under Debtor Distress," CERGE-EI Working Papers wp744, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    2. Stephen Drinkwater, 2021. "Brexit and the ‘left behind’: Job polarization and the rise in support for leaving the European Union," Industrial Relations Journal, Wiley Blackwell, vol. 52(6), pages 569-588, November.

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    More about this item

    Keywords

    populism; political parties; trade; immigration; shocks;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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