Populism, Party Ideology, and Economic Expropriations

What is the connection between populism, globalization, and international political economy (IPE) more broadly? Many presume that all populists oppose all forms of globalization, focusing on trade, migration, and international institutions. This article examines the underexplored but important relationship between populism and foreign direct investment, specifically whether populists are more likely than other leaders to expropriate foreign-owned economic assets. The article develops a theory proposing that left populists but not right populists are more likely to expropriate foreign-owned assets, to maintain their domestic political support. The article presents new quantitative panel data on expropriations in all states from 1990 to 2018, finding that left populists but not right populists are significantly more likely than other leaders to expropriate. Further, neither bilateral investment treaties or domestic political institutions, such as democratic constraints, prevent left populists from expropriating. Complementing the quantitative analysis, the article demonstrates these points with an illustrative case study of Bolivia under Evo Morales. The article advances our understanding of the relationship between populism, globalization, and IPE, highlighting the importance of distinguishing between left and right populism and different forms of globalization.