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334 Revision > VoC Re-Cap > Flashcards

VoC Re-Cap Flashcards

1
Q

What is the argument within the VoC?

A
  • a relational view of the firm
  • LMEs and CMEs
  • The role of institutions and organisations
  • The role of culture, informal rules and organisations
  • institutional infrastructure and corporate strategy
  • institutional complementarities
  • ideas, perception, interpretation, culture ideology
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2
Q

Describe a relational view of the firm>?

A
  • relations matter ie they are problematic

- how to coordinate industrial relations, training/education, corporate governance, inter firm relations, employees

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3
Q

What sort of institutions to CME’s need? Exemplify

A
  • ones that facilitate coordination - business associations, trade unions, collaboration-friendly legal/regulatory regimes, deliberative institutions
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4
Q

what do Hall and soskice say about certain factors that go together well (institutional complementarities)

A
  • Certain factors go together well - e.g. high employment protection and low stock market capitalisation (Hall and Soskice, 2001. P. 19)
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5
Q

what do hall and soskice say is the most superior form of capitalism?

A
  • ‘although each type of capitalism has its partisans, we are not arguing here that one is superior to another. Despite some variation over specific periods, both liberal and coordinated market economies seem capable of providing satisfactory levels of long run economic performance’ (Hall and Soskice)
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6
Q

essentially what is comparative institutional advantage?

A

Radical innovation versus incremental innovation

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7
Q

what do Hanckè et al ., 2007 say about LME v CME?

holders of assets

A

’ In LMEs, holders of mobile assets (workers with general skills, investors in fluid capital markets) will seek to make markets still more fluid and accept further deregulatory policies.’

‘In CMEs, holders of specific assets (workers with industry specific skills and investors in co-specific assets) will more often oppose greater market competition and form status quo supporting cross class coalitions… change therefore is, most likely to be path dependent’

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8
Q

what are criticisms of VoC (from Hanckè et al., 2007)

A
  • too static (focus on path dependency)
  • functionalist
  • Reductionalist
  • nationalist methodology (nations are ‘hermetically sealed’
  • Apolitical (under emphasises conflict)
  • ‘sex blind’
  • neglects the role of the state
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9
Q

what did Hall and Gingereich conclude in 2009?

A
  • The poor performance of hybrids
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10
Q

what are the two key distinctions within firms and their relation to economic life?

A
  • Distinction rests on the extent to which key dilemmas of economic life are resolved by competition or cooperation within firms
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11
Q

Describe Liberal market economy:

A
  • competitive capital markets (stock market capitalism)
  • Firms aim for maximum return to share holders - short term profits, not long term sustainability
  • prone to crash
  • competitive labour markets (decentralised wage setting, high labour mobility)
  • systemic demand for migrants / workers outside the firm

Competitive product markets (Easy entry into markets, little inter firm cooperation

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12
Q

Describe coordinated market economy

A
  • regulated capital markets (bank focused, strong investor company relationship)
  • shareholders important but not key
  • companies aim for long term sustainability and growth rather than short term profits
  • coordinated labour markets (Centralised wage setting, works councils, low mobility/flexibility)
  • long term training
  • unions part of the management
  • stable/life jobs
  • less cut throat competition in local product markets (inter-firm technology transfer etc)
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13
Q

what does the LME model imply in terms of a social model?

A
  • the social model is weaker
  • market allocation, little state interference
  • more work anxiety - less productivity
  • fleixble labour force, high income inequality
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14
Q

CME implies what kind of social model?

A
  • stronger social model
  • more coordinated allocation, role of intermediary institutions , usually more state intervention
  • higher productivity
  • lower income inequality
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15
Q

what do hall and soskice say about how different types of economy react to certain challenges?

A
  • ‘firms in different types of economy react different to similar challenges’
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16
Q

in Streeck 2010 (varieties and commonalities of capitalism) Polyani calls different forms of capitalism what?

(Instituted)

A
  • Polyani calls different forms of capitalism an ‘instituted process’ –> private property and free markets etc came about in different historical contexts and local traditions, institutions and power structures
17
Q

briefly give some history on VoC

A
  • Two decades after world war two were the high time of convergence theory but then differences started to come up
  • (Schonfield) described in the 60s a shift of power from private capitalism to interventionist nation states
18
Q

how does streeck define the social embeddedness account of capitalism?

A
  • societies are distinguished by the extent to which traditional, pre capitalist codes of social behaviour and modes of social control continue under capitalism to moderate the egoistic pursuit of economic interests
19
Q

how do esping andersen describe SD?

A
  • “politics against markets”
20
Q

Streeck’s historical institutionalist model states what?

A

it emphasises the role of inherited institutions, as both constraints and opportunities for economic action –> obligations, not just rights erve rational economic objectives but also serve a wide range of further purposes

21
Q

what does streeck’s rationalist functionalist model emphasise?

How did capitalist variety come about?

A
  • capitalist variety as the outcome of a search cor economic advantage –> background is shift of convergence discourse in the 80s and 90s from technological economic determinism
22
Q

How does Goodin criticise the Hall and Soskice typology?

A

he rejects its binary and dualism

- for example is there a third type, like a Mediterranean

23
Q

What additions does Boyer add to the LME CME distinction?

A
  • market led, corporate, social democratic and state led capitalism.
24
Q

What are the types that Amable determined using analytical economic techniques on a large set of macroeconomic variables?

A
  • maket based
  • Asian
  • Continental European
  • Social Democratic
  • Mediterranean
25
Q

What does Schmidt suggest in order to accommodate the peculiarities of the French system?

A
  • Market capitalism
  • Managed capitalism
  • State Capitalism
26
Q

Why have Hall and Soskice been criticised for pairing the UK and USA?

A
  • Because there is major difference between the two, (e.g. USA strong state role in technological innovation due to state spending, without which Silicon valley or the internet would never have come to fruition)
27
Q

What weakens the argument of comparative advantage?

A
  • States are not prisoners of their institutions –> they can move to where best suits them
  • Firms can take advantage of porous national borders which allows them to get resources internationally
28
Q

name some authors who doubt the rigidity of VoC

A
  • Hanecke/Goyer, Batt, Nohara, Doelgast, Wood et al.
29
Q

What does Morgan note about firms?

A
  • growing strategic capacity to make individual choises independent of national insttutional constraints = more diversity and blurring of differences
30
Q

Campbell and Pedersen say what about structural homegeneity advantages assumed by the VoC?

A
  • they might not actually be tightly coupled as suggested. They point to the frequency and high economic viability of national systems that combine coordination by institutions with coordination by markets
31
Q

Good quote from Krugman?

“Country is not a company”

A
  • “a country is not a company: : not only can it not be structured and restructured from the top for the purposes of efficiency and competitiveness but it comprises a broad variety of sometimes conflicting objectives that can not be authoritatively reduced to a single common goal, even that of economic efficiency or prosperity”
    Krugman 1996
32
Q

what do Amable and Palobarini say about labor as an actor?

A
  • VoC fails to see labor as an actor that is different in interests from those of capital. Also theory neglects political as distinguished from the economic conditions of social stability and change

(***Others have emphasised the absence of cultural motives as oppose to economic ones in VoC counts of stability and change in capitalist political economies (e.g. Germany since the 70s, Streeck argued that empirically capitalist development cannot be explained as a result of rational economizing but must be accounted for as shaped by conflict between profit seeking and social counter movements contesting the dominance of capitalist market relations over social life

33
Q

how does the VoC theory view welfare?

A
  • Voc Views welfare as institutional device designed to enchance the efficeincy of economic transactions. –> Asset specificity, skills and skill formation
34
Q

What historical consideration does VoC fail to make?

A
  • doesn’t mention anything about change and historical development between the two types, e.g. how did post war Britain or the Beveridge reports come about and fit the conceptual framework

Bonus –> it also ignores the liberalisation of CMEs, seen as typologically insignificant

35
Q

What does Goodin remind us about the LME/CME dichotomy?

A
  • It allows for two modes of change which are seen at the coordinated end of the typological continuum (e.g. Financial deregulation is the “string that unravels coordinated market economies”
36
Q

what did Höpner argue about non liberal capitalism?

A
  • It was not just coordinated but also organised, with institutions providing not only for the efficiency of makrets but also for their social containment and control
37
Q

What is a good way to understand capitalism?

A

An institutional balance or configuration, firms are the main institution (they interact with themselves and the state)

38
Q

describe the firm

A
  • institutional, survival, profit orientated, can lobby for environment (conditions for employees) relationship based
39
Q

How is CME different from a statist economy?

A
  • A CME is based on collective agreements (coordination)

334 Revision (10 decks)

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