Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-26T05:45:23.447Z Has data issue: false hasContentIssue false

Globalization as ‘Galton's Problem’: The Missing Link in the Analysis of Diffusion Patterns in Welfare State Development

Published online by Cambridge University Press:  24 April 2006

Detlef Jahn
Affiliation:
University of Greifswald, Germany, djahn@uni-greifswald.de
Get access

Abstract

Most macro cross-national studies in political science that analyze the impact of globalization on domestic policies do not sufficiently consider the methodological consequences of diffusion processes, or “Galton's problem,” as it is often referred to. I argue that globalization is a form of diffusion. Therefore it requires a shift from an exclusively functional analysis, which dominates in almost all established comparative studies in the field, to a diffusional analysis. I assume that globalization leads to a shift in focus on the part of political actors from domestic to international issues. I test this hypothesis by examining social expenditure rates of sixteen highly developed welfare states. The results indicate that globalization has become a highly influential factor since the late 1980s in contrast to the years before. In addition to the actual results presented here, the methodological approach of analyzing globalization as diffusion is relevant to other areas of comparative and international politics and may be a tool in future research.The results of this article are based on a research project, “Environmental Problems as a Global Phenomenon,” which is supported by the German Research Society (DFG; JA 638/7). I wish to thank my research assistants Katrin Daedlow and Bertram Welker for supporting me in data collection and analysis. For constructive comments on different versions of the manuscript, I thank Reinhard Wolf, Kerstin Martens, Susanne Pickel, Kati Kuitto, and above all Elizabeth Zelljadt, two anonymous referees, and the editor of this journal. Most of the revision of this article was written while I visited the Department of Political Science at UCLA. I thank George Tsebelis and James Honaker for comments and advice and Michael Lofchie for his hospitality. I also received invaluable support from Heino von Meyer and Herbert Pfeiffer from the OECD Berlin Centre. Finally I would also like to thank Michael Zürn, who motivated me with his statement that comparative country studies might become obsolete in times of globalization. Without this provocation, this article would not have been written.

Type
Research Article
Copyright
© 2006 The IO Foundation and Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Achen, Christopher H. 2000. Why Lagged Dependent Variables Can Suppress the Explanatory Power of Other Independent Variables. Paper presented at the Annual Meeting of the Political Methodology Section of the American Political Science Association, Los Angeles, July.
Aldrich, Howard. 1999. Organizations Evolving. London: Sage.
Allan, James P., and Lyle Scruggs. 2004. Political Partisanship and Welfare State Reform in Advanced Industrial Societies. American Journal of Political Science 48 (3):496512.Google Scholar
Armingeon, Klaus, Michelle Beyeler, and Harmen Binnema. 2001. The Changing Politics of the Welfare State: A Comparative Analysis of Social Security Expenditures in 22 OECD Countries, 1960–1998. Unpublished manuscript, University of Berne, Switzerland.
Armingeon, Klaus, Philipp Leimgruber, Michelle Beyeler, and Sarah Menegale. 2004. Comparative Political Data Set 1960–2002. Institute of Political Science, University of Berne, Switzerland. Available at 〈www.ipw.unibe.ch/mitarbeiter/ru_armingeon/CPD_Set_en.asp〉. Accessed January 23, 2006.
Baltagi, Badi H. 2001. Ecometric Analysis of Panel Data. 2d ed. New York: Wiley.
Banerjee, Abhijit V. 1992. A Simple Model of Herd Behavior. Quarterly Journal of Economics 107 (3):797817.Google Scholar
Banerjee, Anindya. 1999. Panel Data Unit Roots and Cointegration: An Overview. Oxford Bulletin of Economics and Statistics 61 (special issue):60729.Google Scholar
Basinger, Scott J., and Mark Hallerberg. 2004. Remodeling the Competition for Capital: How Domestic Politics Erases the Race to the Bottom. American Political Science Review 98 (2):26176.Google Scholar
Beck, Nathaniel. 2001. Time-Series-Cross-Section Data: What Have We Learned in the Past Few Years? Annual Review of Political Science 4 (1):27193.Google Scholar
Beck, Nathaniel, and Jonathan N. Katz. 1995. What to do (and not to do) with Time Series Cross-Section Data. American Political Science Review 89 (3):63447.Google Scholar
Beck, Nathaniel, Kristian Gleditsch, and Kyle Beardsley. 2005. Space Is More than Geography: Using Spatial Econometrics in the Study of Political Economy. Unpublished manuscript, New York University, New York. Available at 〈http://www.nyu.edu/gsas/dept/politics/faculty/beck/beck_home.html#Papers〉. Accessed 23 January 2006.
Budge, Ian, Hans-Dieter Klingemann, Andrea Volkens, Judith Bara, and Eric Tannenbaum. 2001. Mapping Policy Preferences: Estimates for Parties, Electors, and Governments, 1945–1998. Oxford: Oxford University Press.
Burgoon, Brian. 2001. Globalization and Welfare Compensation: Disentangling the Ties That Bind. International Organization 55 (3):50951.Google Scholar
Cameron, David. 1978. The Expansion of Public Economy: A Comparative Analysis. American Political Science Review 72 (4):124361.Google Scholar
Castles, Francis G., ed. 1982. The Impact of Parties: Politics and Policies in Democratic Capitalist States. London: Sage.
Castles, Francis G. 1998. Comparative Public Policy: Patterns of Post-War Transformation. Northampton, Mass.: Edward Elgar.
Castles, Francis G. 2002. Developing New Measures of Welfare State Change and Reform. European Journal of Political Research 41 (5):61341.Google Scholar
Cerny, Philip. 1994. The Dynamics of Financial Globalization: Technology, Market Structure, and Policy Response. Policy Sciences 27 (4):31942.Google Scholar
Cerny, Philip. 1995. Globalization and the Changing Logic of Collective Action. International Organization 49 (4):595626.Google Scholar
Collier, David, and Richard E. Messick. 1975. Prerequisites Versus Diffusion: Testing Alternative Explanations of Social Security Adoption. American Political Science Review 69 (4):1299315.Google Scholar
DiMaggio, Paul J., and Walter W. Powell. 1983. The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review 48 (2):14760.Google Scholar
Downs, George W., and David Rocke. 1995. Optimal Imperfection? Domestic Uncertainty and Institutions in International Relations. Princeton, N.J.: Princeton University Press.
Drache, Daniel. 1996. From Keynes to K-Mart: Competitiveness in a Corporate Age. In States Against Markets: The Limits of Globalization, edited by Robert Boyer and Daniel Drache, 3161. New York: Routledge.
Esping-Andersen, Gøsta. 1990. The Three Worlds of Welfare Capitalism. Cambridge: Polity Press.
Evans, Peter. 1997. The Eclipse of the State? Reflections on Stateness in an Era of Globalization. World Politics 50 (1):6287.Google Scholar
Falkner, Gerda. 1998. EU Social Policy in the 1990s: Towards a Corporatist Policy Community. London: Routledge.
Franzese, Robert J., Jr., and Jude C. Hays. 2004. Empirical Modeling Strategies for Spatial Interdependence: Omitted-Variable vs. Simultaneity Biases. Mimeo 24 July 2004. Available at 〈http://www-personal.umich.edu/∼franzese/Publications.html〉. Accessed 23 January 2006.
Garrett, Geoffrey. 1998. Partisan Politics in the Global Economy. Cambridge: Cambridge University Press.
Garrett, Geoffrey, and Deborah Mitchell. 2001. Globalization, Government Spending and Taxation in the OECD. European Journal of Political Research 39 (2):14577.Google Scholar
Gilpin, Robert. 2001. Global Political Economy: Understanding the International Economic Order. Princeton, N.J.: Princeton University Press.
Goldthorpe, John H. 1997. Current Issues in Comparative Macrosociology: A Debate on Methodological Issues. Comparative Social Research 16:126.Google Scholar
Hall, Peter A. 1993. Policy Paradigms, Social Learning, and the State: The Case of Economic Policymaking in Britain. Comparative Politics 25:27596.Google Scholar
Hays, Jude C. 2003. Globalization and Capital Taxation in Consensus and Majoritarian Democracies. World Politics 56 (1):79113.Google Scholar
Hibbs, Douglas A. 1977. Political Parties and Macroeconomic Policy. American Political Science Review 71 (4):146787.Google Scholar
Hicks, Alexander M. 1999. Social Democracy & Welfare Capitalism: A Century of Income Security Politics. Ithaca, N.Y.: Cornell University Press.
Hicks, Alexander M., and Lane Kenworthy. 2003. Varieties of Welfare Capitalism. Socio-Economic Review 1 (1):2761.Google Scholar
Hicks, Alexander M., and Christopher Zorn. 2003. The Paradox of Self-Limiting Immoderation: Explaining Reversals of Welfare Expansion. Unpublished manuscript, version 7.3, June 20, 2003. Emory University, Atlanta.
Huber, Evelyne, Charles Ragin, and John D. Stephens. 1993. Social Democracy, Christian Democracy, Constitutional Structure, and the Welfare State. American Journal of Sociology 99 (3):71149.Google Scholar
Huber, Evelyne, and John D. Stephens. 2001. Development and Crisis of the Welfare State: Parties and Policies in Global Markets. Chicago: University of Chicago Press.
Jacoby, Wade. 2000. Imitation and Politics: Redesigning Modern Germany. Ithaca, N.Y.: Cornell University Press.
Jahn, Detlef, and Matt Henn. 2000. The “New” Rhetoric of New Labour in Comparative Perspective: A Three-Country Discourse Analysis, West European Politics 23 (1):2646.Google Scholar
Katzenstein, Peter. 1985. Small States in World Markets: Industrial Policy in Europe. Ithaca, N.Y.: Cornell University Press.
Kittel, Bernhard, and Hannes Winner. 2005. How Reliable Is Pooled Analysis in Political Economy? The Globalization-Welfare State Nexus Revisited. European Journal of Political Research 44 (2):26993.Google Scholar
Korpi, Walter. 1983. The Democratic Class Struggle. London: Routledge and Kegan Paul.
Korpi, Walter, and Joakim Palme. 2003. New Politics and Class Politics in the Context of Austerity and Globalization: Welfare State Regress in 18 Countries, 1975–95. American Political Science Review 97 (3):42546.Google Scholar
Kurzer, Paulette. 1993. Business and Banking: Political Change and Economic Integration in Western Europe. Ithaca, N.Y.: Cornell University Press.
Leibfried, Stephan. 1992. Towards a European Welfare State? On Integrating Poverty Regimes into the European Community. In Social Policy in a Changing Europe, edited by Zsuzsa Ferge and Jon Eivind Kolberg, 24579. Boulder, Colo.: Westview Press.
Levin, Andrew, Chien-Fu Lin, and Chia-Shang James Chu. 2002. Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics 108 (1):124.Google Scholar
Levy, Jack S. 1994. Learning and Foreign Policy: Sweeping a Conceptual Minefield. International Organization 48 (2):279312.Google Scholar
Lijphart, Arend. 1999. Patterns of Democracy: Government Forms and Performance in Thirty-Six Countries. New Haven, Conn.: Yale University Press.
Maddala, G. S. 1999. Recent Developments in Dynamic Econometric Modeling: A Personal Viewpoint. Political Analysis 7 (1):5987.Google Scholar
Maddala, G. S., and In-Moo Kim. 1998. Unit Roots, Cointegration, and Structural Change. Cambridge: Cambridge University Press.
March, James G., and Johan P. Olsen. 1976. Ambiguity and Choice in Organizations. Bergen, Norway: Universitetsforlaget.
Milner, Helen V., and Robert O. Keohane. 1996. Internationalization and Domestic Politics: An Introduction. In Internationalization and Domestic Politics, edited by Robert O. Keohane and Helen V. Milner, 324. Cambridge: Cambridge University Press.
Moses, Jonathon W. 2001. A Methodological Critique of Statistical Studies of Globalization. Unpublished manuscript, Norwegian University of Science and Technology, Trondheim, Norway.
Mosley, Layna. 2003. Global Capital and National Governments. Cambridge: Cambridge University Press.
Naroll, Raoul. 1973. Galton's Problem. In A Handbook of Method in Cultural Anthropology, edited by Raoul Naroll and Ronald Cohen, 97489. New York: Columbia University Press.
O'Connor, Julia, and Gregg M. Olsen, eds. 1998. Power Resources Theory and the Welfare State: A Critical Approach. Toronto: Toronto University Press.
Ohmae, Kenichi. 1995. The End of the Nation State: The Rise of Regional Economies. New York: Free Press.
Organization for Economic Cooperation and Development (OECD). Various years. Historical Statistics. Paris: OECD.
Organization for Economic Cooperation and Development (OECD). Various years. Quarterly National Accounts. Paris: OECD.
Organization for Economic Cooperation and Development (OECD). Various years. Economic Outlook. Paris: OECD.
Pfaller, Alfred, Ian Gough, and Göran Therborn. 1991. Can the Welfare State Compete? A Comparative Study of Five Advanced Capitalist Countries. London: Macmillan.
Pfeffer, Jeffrey, and Gerald R. Salancik. 1978. The External Control of Organizations: A Resource Dependence Perspective. New York: Harper and Row.
Pierson, Paul. 1994. Dismantling the Welfare State? Reagan, Thatcher, and the Politics of Retrenchment. Cambridge: Cambridge University Press.
Przeworski, Adam. 1987. Methods of Cross-National Research, 1970–83: An Overview. In Comparative Policy Research: Learning from Experience, edited by Meinolf Dierkes, Hans N. Weiler, and Ariane Berthoin Antal, 3149. Adlershot, England: Gower.
Przeworski, Adam, and Henry Teune. 1970. The Logic of Comparative Social Inquiry. New York: Wiley.
Putnam, Robert D. 1967. Towards Explaining Military Intervention in Latin American Politics. World Politics 20 (1):83110.Google Scholar
Quinn, Dennis. 1997. The Correlates of Change in International Financial Regulation. American Political Science Review 91 (3):53151.Google Scholar
Quinn, Dennis, and Carla Inclán. 1997. The Origins of Financial Openness: A Study of Current and Capital Account Liberalization. American Journal of Political Science 41 (3):771813.Google Scholar
Rodrik, Dani. 1996. Why do More Open Economies Have Bigger Governments? NBER Working Paper 5537. Cambridge, Mass.: National Bureau of Economic Research.
Rodrik, Dani. 1997. Has Globalization Gone Too Far? Washington, D.C.: Institute for International Economics.
Rogers, Everett M. 1995. Diffusion of Innovations. 4th ed. New York: Free Press.
Ross, Marc Howard, and Elizabeth Homer. 1976. Galton's Problem in Cross-National Research. World Politics 29 (1):128.Google Scholar
Schmidt, Manfred G. 1996. When Parties Matter: A Review of the Possibilities and Limits of Partisan Influence on Public Policy. European Journal of Political Research 30 (2):15583.Google Scholar
Schmidt, Manfred G. 2002. The Impact of Political Parties, Constitutional Structures and Veto Players on Public Policy. In Comparative Democratic Politics, edited by Hans Keman, 16684. London: Sage.
Siaroff, Alan. 1999. Corporatism in 24 Industrial Democracies: Meaning and Measurement. European Journal of Political Research 36 (6):175205.Google Scholar
Simmons, Beth A., Frank Dobbin, and Geoffrey Garrett. Forthcoming. Introduction: The International Diffusion of Liberalism. International Organization. Available at 〈http://www.people.fas.harvard.edu/%7Ebsimmons/researchpapers/SimmonsDobbinGarrettDiffusion.pdf〉. Accessed 23 January 2006.
Simmons, Beth A., and Zachary Elkins. 2004. The Globalization of Liberalization: Policy Diffusion in the International Political Economy. American Political Science Review 98 (1):17189.Google Scholar
Stephens, John D. 1979. The Transition from Capitalism to Socialism. London: Macmillan.
Strange, Susan. 1996. The Retreat of the State: The Diffusion of Power in the World Economy. New York: Cambridge University Press.
Swank, Duane. 2002. Global Capital, Political Institutions, and Policy Change in Developed Welfare States. Cambridge: Cambridge University Press.
Teorell, Jan, and Axel Hadenius. 2004. Global and Regional Determinants of Democracy: Taking Stock of Large-N Evidence. Paper presented at the 100th Annual Meeting of the American Political Science Association, Chicago, September.
Tsebelis, George. 2002. Veto Players: How Political Institutions Work. New York/Princeton, N.J.: Russell Sage Foundation/Princeton University Press.
Tylor, Edward E. 1889. On a Method of Investigating the Development of Institutions Applied to the Laws of Marriage and Descent. Journal of the Royal Anthropological Institute 18 (3):24572.Google Scholar
van Kersbergen, Kees. 1995. Social Capitalism: A Study of Christian Democracy and the Welfare State. London: Routledge.
Wallerstein, Michael, and Bruce Western. 2002. Unions in Decline? What Has Changed and Why. Annual Review of Political Science 3 (1):35577.Google Scholar
Wilensky, Harold L. 1975. The Welfare State and Equality: Structural and Ideological Roots of Public Expenditures. Berkeley: University of California Press.
Wilensky, Harold L. 2002. Rich Democracies: Political Economy, Public Policy, and Performance. Berkeley: University of California Press.
World Bank. Various years. World Development Indicators. Washington, D.C.: World Bank.