Domestic structures, foreign economic policies and global economic order: Implications from the rise of large emerging economies

2015

Socioecon Rev

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127

The article discusses advances and limitations of Comparative Capitalism scholarship on the causes of the Eurozone crisis. It explains the crisis by highlighting four basic mechanisms: first, the absence of a system of coordinated wage bargaining has been made responsible for the loss of cost competitiveness. Second, the specialization in price-sensitive medium-quality goods and the corresponding loss of market shares to emerging markets has been attributed to the weak innovation systems of Southern economies. Third, the loss of competitiveness has been masked temporarily by a strong increase of public indebtedness and, fourth, private household indebtedness. These four explanations do not put the blame for the Eurozone crisis on a single government or a single type of actors, but rather highlight the systemic causes for the crisis, brought about by the construction of a common currency for institutionally very heterogeneous economies.

Section: Three Generations Of CC Researchmentioning

confidence: 99%

Economic causes of the Eurozone crisis: the analytical contribution of Comparative Capitalism

2015

Socioecon Rev

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127

“…Drawing on concepts developed in Comparative Capitalism, we can explain preferences in international economic negotiations by looking at domestic capitalist institutions, while assuming that states will try to prevent international institutions that strongly interfere with those institutions that support domestic capitalist development (Fioretos, 2010(Fioretos, , 2011Nölke, 2011;Kalinowski, 2013;Nölke et al, 2014). From this perspective, the dominating role of state factions and of national capitalists is not unique to China, but rather typical for the type of capitalism that has been evolving in large emerging economies such as India and Brazil.…”

Section: Factions In a Broader Perspective: China As A Smementioning

confidence: 99%

“…At the core of the article is the assumption that different models of capitalism provide important analytical leverage for understanding the behavior of (emerging) economies in international institutions. In line with an emerging research program on 'second image IPE', we link the comparative institutional study of capitalism with the analysis of broader global institutions and structures (Fioretos, 2010(Fioretos, , 2011Nölke, 2011;McNally, 2012;Kalinowski, 2013;Vermeiren, 2014;Nölke et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

International financial regulation and domestic coalitions in state-permeated capitalism: China and global banking rules

2015

Int Polit

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China plays a 'mainstream' role in global banking negotiations and does not articulate positions that considerably contradict those of the dominant actors (for example, the United States or United Kingdom). Still, the Chinese banking sector differs quite considerably from those of Western economies. In order to understand the Chinese stance on international banking regulation, we need to look at the development of domestic regulation in China. An analysis of institutional changes in Chinese banking regulations highlights the importance of various political-economic factions that have different positions on banking regulation. These factions are a core ingredient of the Chinese statepermeated model of capitalism. Moreover, it is impossible to understand the development of this type of capitalism without taking the size of the economy and the timing of its historical insertion into global capitalism into account.

“…However, at least from an International Political Economy perspective, the most interesting question is whether the increasing importance of China will lead to a different, more statist model of global capitalist regulation, if compared with the current liberal model. So far, this question has only been addressed by a number of popular, somewhat speculative treatments (Choate, 2009;Bremmer, 2010), while comprehensive empirical studies have only just begun (McNally, 2012;Nölke et al, 2014).…”

mentioning

confidence: 98%

“…The latter have been characterized as 'state-permeated market economies' (Nölke, 2012 and this issue;Nölke et al, 2014), given the pre-dominance of close networks between public authorities and private domestic capital. The most prominent application of comparative capitalism categories to Chinese foreign economic policies has been developed by McNally (2012 and this issue).…”

mentioning

confidence: 98%

Second image revisited: The domestic sources of China’s foreign economic policies

2015

Int Polit

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The rise of emerging economies and its likely implications for the global order are among the most exciting topics of contemporary International Relations scholarship. Among the emerging markets, China counts as a particularly interesting case for the study of future global rulemaking, given the countries' economic and political power. Therefore, the question whether the further rise of China will be peaceful or confrontational -and the corresponding policy conclusions -has become one of the most widely debated over the last decade. Recent discussions about this issue have been oscillating between the prediction of an increasing number of conflicts on the one side and the assumption of China's harmonious integration into the existing global order on the other.