Knowledge-intensive intangibles, spatial transaction costs, and the rise of populism

Populism is rising in many parts of the world and appears from both ends of the political spectrum. I identify two distinct global trends that underlie its rise. First, the rising knowledge-intensity of world output has turned the terms of trade against primary activities like agriculture and mining. Countries that have remained dependent on these activities have seen their economies stall. Second, falling spatial transaction costs have resulted...