Coordinated Market Economy - 17621 Words

MPIfG Discussion Paper 04/5 Varieties of Capitalism and Institutional Complementarities in the Macroeconomy An Empirical Analysis Peter A. Hall and Daniel W. Gingerich Peter A. Hall is Krupp Foundation Professor of European Studies and the Director of the Minda de Gunzburg Center for European Studies at Harvard University. Daniel W. Gingerich is a Graduate Associate of the Weatherhead Center for International Affairs and a Ph. D. candidate in the Department of Government at Harvard University. Peter A. Hall phall@fas.harvard.edu Daniel W. Gingerich gingeric@fas.harvard.edu Peter A. Hall and Daniel W. Gingerich Varieties of Capitalism and Institutional Complementarities in the Macroeconomy: An Empirical Analysis MPIfG†¦show more content†¦This question has been central to comparative political economy for many years. However, most answers to it focus on institutions in a single sphere of the political economy. In economics, there are large but separate literatures on labor and financial markets. One explores the impact of labor regulations, social regimes, and trade unions on growth or unemployment (Nickell 1997; OECD 1994; Calmfors/ Driffil 1988). The other considers the effects of accounting standards, the legal standing of owners or creditors, ownership patterns, and equity or bank-based finance on levels of investment or growth (Carlin/Mayer 1999a, 1999b; LaPorta et al. 1998a; Huang/Xu 1999; Mayer 1996). A similar separation is evident in political science. Although neocorporatism can be defined in broad terms (cf. Katzenstein 1985; Schmitter/Lehmbruch 1978), analyses of its economic impact usually focus on the organization of the trade union movement, considering its interactio n mainly with the partisanship of governance (Cameron 1984; Alvarez et al. 1991; Garrett 1999).1 An entirely different literature examines the structure of financial systems (Verdier 2000; Cox 1986; Zysman 1984).2 However, there are good reasons to expect interaction effects among institutions across spheres of the political economy. In recent years, significant interaction effects have been found between monetary institutions and those governingShow MoreRelated Varieties of Capitalism Essay2378 Words   |  10 Pagesdistinguished and identified two types of coordination - Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs), in which competitive markets are dominant in LMES while CMEs are mainly based on strategic interaction. Using the UK as an example of LME and Germany as an example of CME, this essay will consider the ‘varieties of capitalism’ (VoC) implications for financial structures as well as labour relations of the respective economies. The definition of institutional complementarities willRead More6 Step Financial Management Process745 Words   |  3 PagesAs of 2013, there are a total of 196 recognized sovereign countries in the world. The economies of each of these 196 countries all face the challenge of trying to tackle the central economic problem of scarcity. There is scarcity because people have infinite wants but the resources available to fulfill these wants are finite. This situation has raised the key economic question of ‘what?’, ‘how?’ and ‘for whom’ to produce. The way in which a country decides to answer this question tends to determineRead MoreInternational Convergence Of Accounting Standards1494 Words   |  6 Pagesshape nati onal economies. 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These five spheres include industrial relations, corporate governance, inter-firm relations, vocational training and education, and employees. Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs) can be viewed as the two prototypes representing the twoRead MoreCase Study : Management And Communication Essay1263 Words   |  6 Pagesand communication to subsidiaries.(Scullion H and Starkey 2000) Factors to be considered while framing policies MNCs set up subsidiaries or joint ventures in different countries. MNCs should mainly consider the legal practices, minimum wages, Labour market regulations, the culture, industrial relations systems, the character of country’s welfare system and the cross- country differences for framing the policies. MNCs may choose to adapt the environment in the host country or develop policies based on