For many years, comparative welfare state research has followed a 'methodological nationalism' in the sense that countries were treated as independent units. Yet the recent 'spatial turn' in comparative politics has also influenced welfare state research. For some years now, the field has been witnessing a growing interest in questions about interdependencies and policy diffusion between countries. In this article, we provide a structured overview of the state of the art in the policy diffusion and transfer literature that deals specifically with social policy. We present and critically evaluate existing theoretical concepts and quantitative and qualitative methodological approaches that enable the analysis of interdependencies between countries. Moreover, we summarize the empirical findings of quantitative and qualitative studies on the diffusion and transfer of social policy, from some pioneering studies to the latest findings. Against this background we point out what we believe to be promising avenues for future research. We focus on five areas: theoretical work on the mechanisms underlying diffusion and transfer; methodological approaches; the impact of domestic institutions and policy characteristics on social policy diffusion and transfer; programme-specific dynamics; and the systematic combination of horizontal and vertical interdependencies.

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Existing studies have found only limited empirical evidence of welfare state convergence. Moreover, although there are good theoretical reasons both for and against welfare state convergence, there are virtually no studies that have explicitly tested the assumed effects. We argue that the concept of conditional convergence helps to both better describe and explain the phenomenon. By applying error correction models, we examine conditional convergence of various types of social expenditure in 21 OECD countries between 1980 and 2005. Our empirical findings go beyond the existing literature in two respects. First, we show that there is very strong evidence of convergence across all categories of social expenditure when conditional factors are taken into account. Second, we demonstrate that the speed of convergence is highly driven by globalization and European Union membership and shaped by existing welfare state structures.

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Many scholars have argued that partisan differences have disappeared since the 1980s because of the ever-increasing economic globalization and the deepening of European integration. Using a new primary data set on public ownership that contains detailed information on privatization in 20 countries between 1980 and 2007, we test these claims empirically in relation to state ownership. We pay special attention to the question of whether changes in the international political economy, notably globalization and different aspects of European integration, condition partisan politics. Our empirical findings suggest that political parties have continued to significantly shape national privatization trajectories in line with the classic partisan hypothesis. While partisan differences are somewhat reduced by the liberalizing and market-building efforts of the European Union, globalization does not condition partisan effects. Moreover, the run-up to the European Monetary Union even seems to have reinforced partisan differences.