1. "Whither 'Varieties of Capitalism'? National Responses to EU Enlargement".
- Author
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Roederer-Rynning, Christilla and Klitgaard, Michael
- Subjects
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COMPARATIVE economics , *ECONOMIC policy , *SOCIAL pressure , *CAPITALISM , *ECONOMIC expansion , *LABOR market , *INTERNATIONAL competition - Abstract
An influential framework in comparative political economy, the "Varieties of Capital-ism" thesis predicts the systematic variation of national policy responses across differ-ent types of advanced economies and claims that policy differences in national political and economic arrangements are likely to persist in the midst of increased international pressure. These two claims are founded upon the propositions that: 1) different varie-ties of capitalism produce different corporate strategies and associated political re-sponses; and more specifically 2) domestic institutional settings define comparative institutional advantages, which remain the dominant frame of reference of corporate actors. While generating important insights into patterns of national adjustment, the varieties of capitalism has been criticized for not paying enough attention to the type of "global pressures" to which national economies are exposed. We examine the robustness of this framework in light of the EU's eastern enlargement and the policy choices made by individual European Union member states on the issue of the opening up of national labor markets. The decision of the EU-15, at the Copenhagen Summit in December 2002, to invite eight Central and East-European Countries (CEECs) to join the EU on May 1, 2004 fuelled fears in many European countries that intensifying competition from low-wage manpower from the new member states would erode national regulatory regimes. In this paper, we investi-gate the usefulness of the varieties of capitalism framework by conducting a structured comparative analysis of Britain, Denmark, and Sweden. Though the variety of capitalism literature captures important aspects of national policy-responses to the enlargement process, the main conclusion of the paper is that this influential perspective needs to be supplemented by more sophisticated accounts of politics, which shed light on how inter-party competition shapes national adjustment. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]
- Published
- 2007