Bringing the state back in: Populism and economic nationalism in Europe

ObjectiveEconomic nationalism has been on the rise for the past two decades. Scholars have also noted the shift away from globalization and deregulation toward a more prominent role of the state in the economy. I explore the role played by populist governments in the increased adoption of economic nationalism and in this return of the state. I argue that the populist worldview lends itself naturally to a consolidation of power-not just political, but also economic. This consolidation of economic power results in a more prominent state even in countries where the populist regime is a right-leaning one.MethodsI test this argument quantitatively by analyzing governments in 30 European countries since 1990, levels of state ownership in the economy, and a battery of economic and political controls.ResultsThe election of a populist government is associated with a strengthening of state ownership in the economy.ConclusionI conclude with a discussion of the prospects for the future study of this populist economic agenda both domestically and internationally.