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Globalization and the welfare state


  • Gülsün Gürkan Yay

    () (Yıldız Technical University)

  • Tolga Aksoy

    () (Yıldız Technical University)


Abstract This paper analyzes the impact of globalization on the Welfare State (WS). Some argue that globalization poses a serious threat to WS and therefore questions its sustainability. On the other hand, some others suggest that WS has to expand more as economies are integrating. After reviewing different hypothesis on the relationship between globalization and WS, we empirically examine the relationship by using 32 countries covering 1980 through 2010. According to the estimation results, there is no direct linkage between globalization and the WS. However the reaction of the WS against globalization is found to vary dramatically depending on welfare regimes. We find evidence in favor of compensation hypothesis in Social Democrat, Conservative and Mediterranean Welfare State regimes, whereas efficiency effect is in place in liberal Welfare States.

Suggested Citation

  • Gülsün Gürkan Yay & Tolga Aksoy, 2018. "Globalization and the welfare state," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(3), pages 1015-1040, May.
  • Handle: RePEc:spr:qualqt:v:52:y:2018:i:3:d:10.1007_s11135-017-0501-z
    DOI: 10.1007/s11135-017-0501-z

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    References listed on IDEAS

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    Cited by:

    1. repec:bla:worlde:v:42:y:2019:i:3:p:959-974 is not listed on IDEAS
    2. Niklas Potrafke, 2019. "The globalisation–welfare state nexus: Evidence from Asia," The World Economy, Wiley Blackwell, vol. 42(3), pages 959-974, March.

    More about this item


    Globalization; Welfare state; Social security expenditures; KOF index;

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • H5 - Public Economics - - National Government Expenditures and Related Policies


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