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1. Beyond Convergence versus Path Dependence: The Internationalization of Industrial Relations at Ford Germany and Britain (1967–1985)

Author:
Thomas Fetzer
Publication Date:
03-2009
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
For a long time scholars of industrial relations tended to associate notions of internationalization with the debate about the cross-border convergence of industrial relations systems. Convergence versus path dependence was thus a key controversy in industrial relations studies for decades. This debate was mirrored in multinational companies when their attempts to “export” industrial relations practices to foreign subsidiaries encountered host country influences that constrained such attempts. In recent years many scholars shown the need for a wider and more complex analysis of internationalization processes that goes beyond the convergence/path dependence dichotomy. Building on this development, the paper presents a historical case study of the impact of cross-border subsidiary integration on industrial relations at Ford Germany and Ford UK between 1967 and 1985. I argue that convergence and path dependence need to be combined with a third “differential internationalization” approach that reflects the country-specific gradual change that emerges from subsidiary integration. The paper concludes by reflecting on the implications of the case study for contemporary internationalization debates.
Topic:
International Relations, Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Britain, United Kingdom, and Germany

2. Learning and Change in Twentieth-Century British Economic Policy

Author:
Michael J. Oliver and Hugh Pemberton
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Despite considerable interest in the means by which policy learning occurs, and in how it is that the framework of policy may be subject to radical change, the “black box” of economic policymaking remains surprisingly murky. This article utilizes Peter Hall's concept of “social learning” to develop a more sophisticated model of policy learning; one in which paradigm failure does not necessarily lead to wholesale paradigm replacement, and in which an administrative battle of ideas may be just as important a determinant of paradigm change as a political struggle. It then applies this model in a survey of UK economic policymaking since the 1930s: examining the shift to “Keynesianism” during the 1930s and 1940s; the substantial revision of this framework in the 1960s; the collapse of the “Keynesian-plus” framework in the 1970s; and the major revisions to the new “neo-liberal” policy framework in the 1980s and 1990s.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United Kingdom and Europe

3. Outsourcing and Inequality

Author:
Paul Brenton, Bob Anderton, and Eva Oscarsson
Publication Date:
10-2002
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This paper brings together and analyses the results of empirical analyses which, in contrast to most other studies, find that trade has been a significant cause of labour market inequality in various industrialised countries. The approach is based upon the concept of outsourcing – whereby the low-skill parts of the production chain are 'outsourced' to low-wage countries. A distinguishing feature of the empirical work is the use of highly detailed trade data, which allow imports from high- and low-wage countries to be separately identified at the industry level. Using cost minimisation framework, we show that imports from low-wage countries have made a significant contribution to the decline in the wage-bill share and/or relative employment of less-skilled workers in the UK, the USA, Sweden and Italy. We also show how the country-specific characteristics of outsourcing can lead to quite different inequality outcomes in different countries. In line with other studies, we also find that technology has played an important role in causing the increase in inequality in many countries. However, there is also some evidence that some of the rapid increase in the application of new technologies in recent decades has been trade-induced through mechanisms such as 'defensive innovation'.
Topic:
Economics, Industrial Policy, International Trade and Finance, and Science and Technology
Political Geography:
United States and United Kingdom

4. Decentralized Cooperation and the Future of Regulatory Reform

Author:
Pepper D. Culpepper
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Faced with the fact of sweeping regulatory reform, how do companies decide how to respond to a new set of policies? This paper argues that this problem requires a new conception of policymaking: a conception that recognizes the analytical primacy of achieving coordination under uncertainty. I call this challenge the problem of securing decentralized cooperation. Negotiated reforms are a common leitmotif of the current wave of reforms taking place in various European countries, whereas American attempts to reinvent government opt to replace the state with the market. There are general lessons in this approach for both strategies. Unlike the earlier attempts to establish neo-corporatist bargains at the national level in European countries, the success of bargained pacts in Europe will depend increasingly on allowing private actors to design the best solutions to centrally identified problems. The challenges of bringing private information to bear on public policy will increase in the future, and not only in supply-side economic policy reforms. One such area is environmental regulation, which is typically viewed as an area of pure state regulation. This is also an area where market-based solutions are frequently proposed as the most efficient solution to problems of pollution. As I demonstrate through the initiative of the Chesapeake Bay Program in the United States, the challenges identified above for areas of economic policymaking are now relevant to environmental initiatives, even in liberal market economies such as the US and the UK. The extent of government success in such initiatives will be determined by the ability of governments to understand the importance of private information and their capacity to develop private sector institutions that can help procure it. Attempts to replace a malfunctioning state with a market solution, currently very much in vogue in certain quarters in the United States, will fail, as long as they do not recognize the distinctive problems inherent in securing decentralized cooperation.
Topic:
Economics and Industrial Policy
Political Geography:
United States, United Kingdom, and Europe

5. The Place of the Defense Industry in National Systems of Innovation

Author:
Kenneth Flamm, Ann Markusen, Judith Reppy, John Lovering, Claude Serfati, Andrew D. James, Eugene Cobble, Judith Sedaitis, Corinna-Barbara Francis, Dov Dvir, Asher Tishler, and Etel Solingen
Publication Date:
04-2000
Content Type:
Working Paper
Institution:
The Judith Reppy Institute for Peace and Conflict Studies
Abstract:
A review of current and forthcoming developments in the European defense industry (which here means mainly Britain, France, Germany, and Italy) would lead, I believe, to some fairly clear conclusions. The relationship between sectoral and national (including regional) economic development is changing profoundly. This is above all because the defense industry currently represents a major and extremely significant instance of globalization. However, this is not the kind of globalization described in many summaries.
Topic:
Security, Defense Policy, Economics, and Industrial Policy
Political Geography:
Russia, United States, China, United Kingdom, Middle East, and France

6. New Answers To Old Questions: Explaining The Slow Adoption Of Ring Spinning In Lancashire, 1880-1913

Author:
Timothy Leunig
Publication Date:
10-2000
Content Type:
Working Paper
Abstract:
This paper re-examines theories previously advanced to explain Lancashire's slow adoption of ring spinning. New cost estimates show that although additional transport costs and technical complementarities between certain types of machine reduced ring adoption rates, these supply side constraints were not dominant. Instead what mattered most were demand side factors. Lancashire produced far more fine yarns than other countries and that yarn was better spun on mules. Furthermore, Lancashire had a sizeable export yarn trade, a market again more suited to mule spinning. Low ring adoption rates were a positive response to demand patterns dominated by high quality goods.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United Kingdom

7. Distribution Dynamics: Stratification, Polarization and Convergence Among OECD Economies, 1870-1992

Author:
Philip Epstein
Publication Date:
10-2000
Content Type:
Working Paper
Abstract:
Since the 1980s the debate about economic convergence has dominated empirical work about the dynamics of growth. Economic historians have been attracted, in particular, by stories of club convergence. However, the analytical foundations of most of the work in this area have rested on linear, or more usually log-linear, regression analysis. Thus, the results tend to be dependent on a conditional average in which time is the dominant player. This is surprising as space, and issues of distribution, have long been important to both theorists and historians. A notable exception to the 'regression school' has been the work on distribution dynamics pioneered in a series of papers by Danny Quah (1993, 1996, 1997). He believes that only by considering the issues of growth and distribution simultaneously can we understand their underlying dynamics. He has argued, for example, that there is no simple causal relationship between the concepts of β-convergence and σ- convergence and that similar stories of global (or club) convergence may be driven by very different stories of individual economy mobility. This is an approach that should appeal to economic historians (both because it can encompass a rich diversity of individual economy experience and because it emphasises that same diversity). We hope to illustrate this by considering the experience of some of the leading OECD economies since 1870 within an explicit distribution dynamics framework.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United Kingdom

8. Competition and Innovation in 1950's Britain

Author:
Stephen Broadberry and Nicholas Crafts
Publication Date:
10-2000
Content Type:
Working Paper
Abstract:
We find little support for the Schumpeterian hypothesis of a positive relationship between market power and innovation in 1950's Britain even though many economists and policymakers accepted it at the time. Price-fixing agreements were very widespread prior to the 1956 Restrictive Practices Act and they seem to have had adverse effects on costs and productivity. Competition policy appears to have been much too lenient but the productivity problems of British industry at this time are best viewed as arising largely from the difficulties of reaping the benefits of innovation rather than from a failure to innovate per se.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Britain and United Kingdom

9. The Myth of Meritocracy? An Inquiry into the Social Origins of Britain's Business Leaders Since 1850

Author:
Tom Nicholas
Publication Date:
01-1999
Content Type:
Working Paper
Abstract:
Recent sociological analysis of the extent to which modern British society has become more meritocratic raises important conceptual issues for the recurrent economic history debate concerning the social mobility of Britain's business leaders. The majority view in this debate is that high social status backgrounds have predominated in the profiles of businessmen throughout the nineteenth and twentieth centuries. François Crouzet's The First Industrialists reveals that Britain's industrial pioneers were drawn largely from the middle-and upper-classes, and that the image of the self-made man as the mainstay of the Industrial Revolution is a myth. Stanworth and Giddens identify a prevalence of 'elite self-recruitment' among deceased company chairmen active in large corporations and banks between 1900 and 1970. Scott's work on the upper classes distinguishes a 'core' business stratum characterised by kinship and privilege. Bringing together a range of research on the social origins of businessmen in the twentieth century, Jeremy asserts that 'it was rare for sons of the semi-skilled and unskilled to rise to national leadership in Britain'. The typical twentieth century business leader is upper-or upper middle-class by social origin, rising through the public schools and Oxbridge into the higher echelons of the business community.
Topic:
Economics, Industrial Policy, and Regional Cooperation
Political Geography:
Britain and United Kingdom

10. Nutrition and Economic Destitution in Northern Ghana, 1930-1957. A Historical Perspective on Nutritional Economics

Author:
Jérùme Destombes
Publication Date:
01-1999
Content Type:
Working Paper
Abstract:
This research takes Iliffe's suggestion seriously. For the student of Sub- Saharan Africa who has decided to explore a plausible route of causation between nutrition and poverty, the most urgent task is to disregard the initial discouragement triggered by the scarcity of references. The lack of relevant data is commonly pointed out and the contrast with the powerful insights made throughout the last decade by development economists is striking: poverty issues have been comprehensively investigated with behavioural models that strive to capture household strategies to cope with nutritional inadequacy and scarcity of resources. Although these strategies potentially have immense effects on welfare, development and the effectiveness of public policies, there have been few attempts to examine nutrition in less-developed countries through an economic history lens.
Topic:
Economics and Industrial Policy
Political Geography:
United Kingdom and Ghana

11. Electricity: Liberal Futures

Author:
Walt Patterson
Publication Date:
11-1997
Content Type:
Working Paper
Institution:
Chatham House
Abstract:
Like the international dimension of electricity discussed in Working Paper 1, the liberal dimension of electricity has emerged only recently, at least as a recognized concept. However, whereas the international dimension is genuinely new, the dimension now characterized as 'liberal' needs closer examination. The language of policy discourse is not always consistent. Until the 1990s, policy analysts habitually referred to the electricity industry as 'conservative', in the sense that it was resistant to change and deeply wary of risk. However, those who first acted to 'liberalize' electricity were themselves 'conservative', in conventional political terms, notably the governments of Chile and the UK in the 1980s. That apparent irony in itself suggests that 'liberalizing' electricity is a more subtle and complex process than the term itself might indicate.
Topic:
Energy Policy, Environment, Government, Industrial Policy, International Trade and Finance, and Science and Technology
Political Geography:
United Kingdom and Chile

12. Political Identities

Author:
Charles Tilly
Publication Date:
05-1995
Content Type:
Working Paper
Institution:
Center for Studies of Social Change
Abstract:
Observation of state-military relations in Israel reveals an apparent paradox: Within a period of about seventy years, the more the militarization of Israeli society and politics gradually increased, the more politicians were successful in institutionalizing effective control over the Israel Defence Forces (IDF, and the pre-state organizations). Militarization passed through three main stages: (1) accepting the use of force as a legitimate political instrument during the pre-state period (1920-1948), subsequent to confrontation between pacifism and activism; (2) giving this instrument priority over political-diplomatic means in the state's first years up to the point in which (3) military discursive patterns gradually dominated political discourse after the 1967 War. At the same time, political control over the IDF was tightened, going from the inculcation of the principle of the armed forces' subordination to the political level during the pre-state period to the construction of arrangements working to restrain the military leverage for autonomous action.
Topic:
Education, Industrial Policy, and Politics
Political Geography:
United Kingdom, Europe, and Israel