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Economic Growth and the Rise of Political Extremism

Author

Listed:
  • Markus Bruckner

    (School of Economics, University of Adelaide)

  • Hans Peter Gruner

    (University of Mannheim and CEPR)

Abstract

In many western democracies, political parties with extreme platforms challenge more moderate incumbents. This paper analyses the impact of economic growth on the support for extreme political platforms. We provide a theoretical argument in favor of growth effects (as opposed to level effects) on the support for extreme political parties and we empirically investigate the relationship between growth and extremist votes. Lower growth rates benefit right-wing and nationalist parties, but do not have a robust positive effect on the support for communist parties. Our estimates indicate that extreme political platforms are unlikely to gain majorities in OECD countries, unless there is an extreme drop in the GDP per capita growth rate.

Suggested Citation

  • Markus Bruckner & Hans Peter Gruner, 2011. "Economic Growth and the Rise of Political Extremism," School of Economics and Public Policy Working Papers 2011-05, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2011-05
    as

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    File URL: https://media.adelaide.edu.au/economics/papers/doc/wp2011-05.pdf
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    References listed on IDEAS

    as
    1. Markus Brückner & Antonio Ciccone, 2011. "Rain and the Democratic Window of Opportunity," Econometrica, Econometric Society, vol. 79(3), pages 923-947, May.
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    More about this item

    Keywords

    political regimes; political extremism; economic growth;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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