Varieties of Capitalism: The Institutional Foundations of Comparative Advantage

by Peter A. Hall (Editor), David Soskice (Editor)

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 institutional advantage' 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.
--back cover

Genres: Economics, Nonfiction, Politics, Political Science, History, Social Science, Sociology

540 pages, Paperback

First published January 1, 2001

Reviews

[Jovan Autonomašević · Rating 5 out of 5]

I bought this book because it was recommended in the FT. It sets out the different types of capitalism that exist in the developed world today - from the US style on one hand, i.e. no workers rights, to the German at the other end of the spectrum, in which corporate social responsibility is enshrined as an article of faith. And Germany's is one of the most successful in the world, and one of the first to bounce back from the 2008 crisis. So when our elders and betters tell us we have to tighten our belts, accept the erosion of our rights, and do more with less, don't believe them and don't accept it. In Yugoslavia it used to be "work, order and peace": 8 hours work, 8 hours rest and 8 hours recreation. Now there's no work, law and order are the monopoly of the ruling parties, and while the war is over, peace is constantly under strain from greedy ideologies. Few people have regular jobs, recreation is a luxury, and it's hard to rest properly when under so much stress. People should read this and similar books so they understand the way their world really works. Our rulers don't want you to: "ignorance is strength".

[Leopold Benedict · Rating 4 out of 5]

Classical work in comparative political economy and a useful framework to apply to everyday newspaper reading.

[Noelle · Rating 4 out of 5]

The more times I read this book, the more like it.

[Aksana Rudovich]

I read 1 chapter of the book for the course Political economy of policy reforms

[Richard Marney · Rating 4 out of 5]

This is a very important book. Give it a 4 stars rating only to acknowledge the impact of the passage of time which calls out for an update.

Institutions are central to social, political, and economic development. Like a magnet working on iron scrapings, a sound and appropriate Institutional framework should attract capital (both human and financial). This book moves from a high level, overly theoretical level to investigate this paradigm in a variety of contexts and from multiple perspectives, providing a nuanced set of explanations of successes and failures in political and market environments, and useful applications.

[C · Rating 4 out of 5]

How comparative advantage and competitiveness intermingle is interesting, but the more I read this, the more I see this as an outdated model of globalisation. Surely, new models need to be formalised? still a classic, but I believe becoming rusty.

[Jakob · Rating 4 out of 5]

essential literature for Political Economy, eye opening for poltical or analyitcal minds alike. but, dont read the whole book, cherry pick your chapters.

[!Tæmbuŝu]

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