Comparative Political Economy and Alternative Theories of Economic Growth

Comparative Political Economy (CPE) is a field in the social sciences that explores the interaction of economic dynamics and political institutions in a comparative cross-country fashion. Recently, the growth models approach (GMA), which builds on post-Keynesian economics (PKE), has challenged the more supply-side oriented varieties of capitalism approach. This paper gives an overview of the debate around GMA, with a focus on macroeconomic issues. It first, discusses the fragmentation of the 19th century political economy approach into heterodox economics and the subsequent formation of CPE and International Political Economy in the social sciences. Second, it clarifies the relations between VoC, GMA and PKE. Third, it reviews debates on identifying growth models empirically; the interpretations of finance-led growth; and the application of GMA to emerging economies, which requires extending and possible reconsidering the analytical framework of GMA. It concludes by discussing similarities and differences between the growth models approach and the French Regulation Theory and Social Structures of Accumulation. It argues that GMA’s analytical framework has been shaped by the experience of the pre-GFC boom and current debates are about building a more general analytical framework.