VoC Re-Cap Flashcards
What is the argument within the VoC?
- 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
Describe a relational view of the firm>?
- relations matter ie they are problematic
- how to coordinate industrial relations, training/education, corporate governance, inter firm relations, employees
What sort of institutions to CME’s need? Exemplify
- ones that facilitate coordination - business associations, trade unions, collaboration-friendly legal/regulatory regimes, deliberative institutions
what do Hall and soskice say about certain factors that go together well (institutional complementarities)
- Certain factors go together well - e.g. high employment protection and low stock market capitalisation (Hall and Soskice, 2001. P. 19)
what do hall and soskice say is the most superior form of capitalism?
- ‘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)
essentially what is comparative institutional advantage?
Radical innovation versus incremental innovation
what do Hanckè et al ., 2007 say about LME v CME?
holders of assets
’ 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’
what are criticisms of VoC (from Hanckè et al., 2007)
- 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
what did Hall and Gingereich conclude in 2009?
- The poor performance of hybrids
what are the two key distinctions within firms and their relation to economic life?
- Distinction rests on the extent to which key dilemmas of economic life are resolved by competition or cooperation within firms
Describe Liberal market economy:
- 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
Describe coordinated market economy
- 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)
what does the LME model imply in terms of a social model?
- the social model is weaker
- market allocation, little state interference
- more work anxiety - less productivity
- fleixble labour force, high income inequality
CME implies what kind of social model?
- stronger social model
- more coordinated allocation, role of intermediary institutions , usually more state intervention
- higher productivity
- lower income inequality
what do hall and soskice say about how different types of economy react to certain challenges?
- ‘firms in different types of economy react different to similar challenges’
in Streeck 2010 (varieties and commonalities of capitalism) Polyani calls different forms of capitalism what?
(Instituted)
- 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
briefly give some history on VoC
- 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
how does streeck define the social embeddedness account of capitalism?
- 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
how do esping andersen describe SD?
- “politics against markets”
Streeck’s historical institutionalist model states what?
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
what does streeck’s rationalist functionalist model emphasise?
How did capitalist variety come about?
- 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
How does Goodin criticise the Hall and Soskice typology?
he rejects its binary and dualism
- for example is there a third type, like a Mediterranean
What additions does Boyer add to the LME CME distinction?
- market led, corporate, social democratic and state led capitalism.
What are the types that Amable determined using analytical economic techniques on a large set of macroeconomic variables?
- maket based
- Asian
- Continental European
- Social Democratic
- Mediterranean
