Globalization and the Welfare State: Four Hypotheses and Some Empirical Evidence
AbstractThis paper examines some implications of the 'new globalism' for the welfare state. We examine four hypotheses about globalization and their implications for welfare state spending: the 'downward harmonization', 'upward convergence', 'convergence clubs' and 'globalization irrelevance' hypotheses. We provide evidence concerning these hypotheses by examining changes in the levels of welfare state spending for a subset of OECD countries. We find some evidence for a convergence of welfare state spending, not universally, but among countries with similar political institutions. Domestic political institutions, therefore, may affect the way in which countries respond to globalization pressures.
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Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 23 (1997)
Issue (Month): 3 (Summer)
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Find related papers by JEL classification:
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
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