Logistic hubs and support for radical-right populism: Evidence from Italy

Abstract

Increasing discontent and the associated growing support for populist parties have been attributed to several drivers, including globalization, technological change, and migration waves. We analyse a phenomenon that encompasses a mix of economic and cultural grievances — the logistic revolution. The Italian logistics industry is characterized by a heavy reliance on low-paying and precarious contracts, it employs a large number of foreign workers, and is dominated by multinational corporations. The construction of large logistic hubs can increase the feeling of economic insecurity and trigger cultural backlash against foreign workers and large corporations. This, in turn, can create a favourable environment for populist radical right-wing parties that portray themselves as protectors of traditional values and national identity, and as defenders of the working class against the perceived threats posed by globalization, immigration, and large corporations. Through an IV and a DiD approach, we provide evidence that the support for Lega, a populist radical-right party, grew in Italian municipalities where new logistic hubs have been built.