Economic crises and the nationalisation of politics

Abstract

The literature on party system nationalisation has yet to provide a better understanding of the impact of short-term factors upon the nationalisation of politics. This article helps to fill this literature gap by analysing the effect of economic conditions on party system nationalisation. The argument is that economic crises will decrease levels of nationalisation by amplifying territorial variation in preferences for redistribution, limiting political parties’ capacity to coordinate divergent interests across districts and triggering the emergence of new political forces. Data on 47 countries for the 1960–2011 period confirm this hypothesis and show that lower economic growth during the years prior to the election is associated with a decrease in levels of party system nationalisation in the next election. The result is robust to variation in the specification of the econometric model and to the use of different measures of nationalisation. Results also show that federal institutions increase the impact of economic conditions on the nationalisation of politics, whereas any moderating effect of electoral system proportionality on the economy is not found