Cultural attitudes, economic shocks and political radicalization

Annie Tubadji and Peter Nijkamp

The Annals of Regional Science, 2019, vol. 62, issue 3, No 5, 529-562

Abstract: Abstract The present paper focuses on the emergence and consequences of the so-called ‘Dogville Effect’, i.e., the negative socioeconomic and spatial impacts caused by radicalization of cultural attitudes in a region. After a conceptual and historical outline of this phenomenon, we present an empirical case, viz. the rise of the ultra-right-wing party in Greece, Chrysi Avgi. We analyze the party’s spatial dispersion and its aftermaths in the period 1993–2015, using both local and regional election results. Spatial-economic controls are derived from the EUI (European University Institute, Florence) regional database. We employ a 2SLS approach (with historical voting results from 1974 as an instrumental variable) and a difference-in-differences approach with a propensity score matching. Our findings show that there exists a cultural persistence in the local share of ultra-right-wing support. The growth in this radicalization, however, is predominantly determined by the shrinking regional household welfare caused by exogenous forces in our model. Finally, the ‘Dogville Effect’, i.e., a further impoverishment of more radicalized localities, seems to be present in Greece, in the vein of the notion of Myrdal’s vicious circles.

JEL-codes: N44 P16 R32 R38 Z10 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s00168-019-00906-1

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