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Summer 2021
ISSN 0890-913X
Volume 36, Number 2

Left-Populism, Commodity Prices, and Economic Crises in Latin America

Nicolás Cachanosky, Metropolitan State University of Denver
Alexandre Padilla, Metropolitan State University of Denver
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/index.php?action=ajax&rs=GDMgetPage&rsargs[]=PARTE1 2021 Journal of Private Enterprise Vol 36 No 2 Summer.pdf&rsargs[]=0
TheJournalofPrivateEnterprise36(2),2021,117Left-Populism,CommodityPrices,andEconomicCrisesinLatinAmericaNicolásCachanoskyMetropolitanStateUniversityofDenverAlexandrePadillaMetropolitanStateUniversityofDenver______________________________________________________AbstractThispaperstudiestheeffectofcommoditypricesandeconomiccrisisontwenty-firstcenturyLatinAmericanleft-leaningpopulism.Ourresultsshowsthathighereconomicpricesarecorrelatedwithmorepopulismconditionaloncountriesalreadybeingunderapopulistregime.Wedonothaveconclusivestatisticalevidenceoftheeffectofeconomiccrisisonpopulistregimes.______________________________________________________JELCodes:E02;P11;P51Keywords:LatinAmerica,populism,commodityprices,crisisI.IntroductionTheriseoftwenty-firstcenturypopulismisarecenttopicofstudyineconomicsandpoliticalsciences.Thisliteraturefocusesontheproblematicissuesofdefiningpopulism,theirreturntogovernmentpower,anditspolicieseconomicandsocialcosts.Thispaperstudiestheimpactofcommoditypricesandeconomiccrisesinthetwentyfirstcenturyriseofleft-leaningpopulisminLatinAmerican.Wefocusontwoquestions.Doweseemoreleft-leaningpopulisminLatinAmericawhencommoditypricesincrease?Also,doweseeanincreaseinpopulismafterarecenteconomiccrisis?Thesearetwotypicalfeaturespresentinthepopulismliterature.Commodityexportcountriesbenefitfromawindfallofresourcesduringhighinternationalpricesthatallowgovernmentstoexecuteredistributiveandtypicalpopulistpolicies.Aneconomiccrisiscanalsoresultinapopulistreactiontotheeconomicandsocialdownturntakingplace.Asweexplaininthenextsection,thetermpopulismisparticularlydifficulttodefine.However,acommonthreadisthatapopulistleaderseeshislegitimacyoriginatingdirectlyfromthepublic
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