Varieties of Capitalism: The Institutional Foundations of Comparative Advantage

Front Cover
Peter A. Hall, David Soskice
OUP Oxford, Aug 30, 2001 - Business & Economics - 556 pages
What are the most fundamental differences among the political economies of the developed world? How do national institutional differences condition economic performance, public policy, and social well-being? Will they survive the pressures for convergence generated by globalization and technological change? These have long been central questions in comparative political economy. This book provides a new and coherent set of answers to them. Building on the new economics of organization, the authors develop an important new theory about which differences among national political economies are most significant for economic policy and performance. Drawing on a distinction between 'liberal' and 'coordinated' market economies, they argue that there is more than one path to economic success. Nations need not converge to a single Anglo-American model. They develop a new theory of 'comparative institutionaladvantage' that transforms our understanding of international trade, offers new explanations for the response of firms and nations to the challenges of globalization, and provides a new theory of national interest to explain the conduct of nations in international relations. The analysis brings the firm back into the centre of comparative political economy. It provides new perspectives on economic and social policy-making that illuminate the role of business in the development of the welfare state and the dilemmas facing those who make economic policy in the contemporary world. Emphasizing the 'institutional complementarities' that link labour relations, corporate finance, and national legal systems, the authors bring interdisciplinary perspectives to bear on issues of strategic management, economic performance, and institutional change. This pathbreaking work sets new agendas in the study of comparative political economy. As such, it will be of value to academics and graduate students in economics, business, and political science, as well as to many others with interests in international relations, social policy-making, and the law.

From inside the book

Contents

An Introduction to Varieties of Capitalism
1
Varieties of Labor Politics in the Developed Democracies
71
Institutional and Sectoral Interactions in Monetary Policy
104
When Why and How Does
184
Varieties
213
Business Government and Patterns of Labor Market
247
Employers Public Policy and the Politics of Decentralized
275
Coordination and Restructuring
307
Comparing Germany
337
Macrovarieties of Capitalism and Microvarieties
361
How Unifying Law Ends up in
417
National Varieties of Standardization
442
Bibliography
474
Index
521
Copyright

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Page 417 - A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.
Page 417 - Good faith and fair dealing (1) Each party must act in accordance with good faith and fair dealing in international trade.
Page xiv - ELLWOOD is professor of public policy at the John F. Kennedy School of Government at Harvard University and a faculty research fellow at the National Bureau of Economic Research.
Page 438 - The question of relative bargaining strength under para (a) and of the opportunity to buy seeds without a limitation of the seedsman's liability under para (b) were interrelated. The evidence was that a similar limitation of liability was universally embodied in the terms of trade between seedsmen and farmers and had been so for very many years. The limitation had never been negotiated between representative bodies but, on the other hand, had not been the subject of any protest by the National Farmers
Page 216 - Regimes can be defined as sets of implicit or explicit principles, norms, rules, and decision-making procedures around which actor expectations converge in a given issue-area.
Page 5 - For this purpose, we construe the key relationships in the political economy in game-theoretic terms and focus on the kinds of institutions that alter the outcomes of strategic interaction.
Page viii - I also gratefully acknowledge support through a grant from the Research and Writing Initiative of the Program on Global Security and Sustainability of the John D. and Catherine T. MacArthur Foundation.
Page 227 - The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist. For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed at: - speeding up the adjustment of industry to structural changes; - encouraging an environment favourable to initiative and to the development of undertakings throughout...
Page 9 - North (1990: 3), we define institutions as a set of rules, formal or informal, that actors generally follow, whether for normative, cognitive, or material reasons, and organizations as durable entities with formally recognized members, whose rules also contribute to the institutions of the political...

About the author (2001)

Peter A. Hall is Frank G. Thomson Professor of Government and Harvard College Professor at Harvard University where he is also the Director of the Minda de Gunzburg Center for European Studies. He is the author or editor of several books and many articles on European politics, policy-making, and comparative political economy. His work has received numerous awards including the Woodrow Wilson Award for the best book in political science published in 1986 and the Luebbert Award for the best article in comparative politics published in 1998. David Soskice is Research Professor of Political Science at Duke University and Adjunct Research Professor at the School for Social Sciences of the Australian National University. He is Emeritus Fellow in Economics at University College, Oxford, and on leave from the Wissenschaftszentrum für Sozialforschung in Berlin (WZB) where he has been Director of the Research Unit on Employment and Economic Change since 1990. He is the author or editor of several books and many articles on comparative political economy, macroeconomics, and labor economics.

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