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The Financial System and Corporate Governance in Germany: Institutions and the Diffusion of Innovations

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  • Wever, Kirsten S.
  • Allen, Christopher S.

Abstract

Germany's economic resilience, even in the face of the extreme pressures of unification, cannot be explained by the neoclassical economic approach. Its social market institutions induce the major actors in the political economy to negotiate over the terms of economic and political adjustment in such a fashion as to diffuse innovative new organizational and institutional practices broadly and thoroughly throughout the economy and polity. The reorganization of the financial sector and the spread of new forms of workplace organization and corporate governance are used to illustrate this dynamic. The paper concludes with implications for how we think about regulation.

Suggested Citation

  • Wever, Kirsten S. & Allen, Christopher S., 1993. "The Financial System and Corporate Governance in Germany: Institutions and the Diffusion of Innovations," Journal of Public Policy, Cambridge University Press, vol. 13(2), pages 183-202, April.
    • Handle: RePEc:cup:jnlpup:v:13:y:1993:i:02:p:183-202_00
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