The Globalization-Welfare State Nexus Reconsidered

dc.contributor.authorMeinhard, Stephanie
dc.contributor.authorPotrafke, Niklas
dc.date.accessioned2020-02-12T08:58:48Z
dc.date.available2020-02-12T08:58:48Z
dc.date.issued2012-05eng
dc.description.abstractTwo hypotheses relate to the globalization–welfare state nexus: the efficiency hypothesis predicts that globalization reduces government sector size and governments' capacity to finance the welfare state. The compensation hypothesis, in contrast, predicts that globalization induces a higher demand for social insurance which results in an extended welfare state. Empirical evidence on the globalization–welfare state nexus is mixed. The evidence is re‐examined by investigating a yearly panel dataset of 186 countries for the 1970–2004 period. This paper uses data compiled by the Penn World Tables on government sector size and employs the Konjunkturforschungsstelle (KOF—Swiss Economic Institute) index of globalization. The results show that globalization increased government sectors around the world. Social globalization especially had a positive influence. Globalization‐induced effects were stronger in Organisation for Economic Co‐operation and Development (OECD) countries. Overall globalization and economic globalization reduced the relative price of government expenditures. These findings suggest that globalization does not jeopardize the welfare state at all.eng
dc.description.versionpublishedde
dc.identifier.doi10.1111/j.1467-9396.2012.01021.xeng
dc.identifier.urihttps://kops.uni-konstanz.de/handle/123456789/48605
dc.language.isoengeng
dc.subject.ddc330eng
dc.titleThe Globalization-Welfare State Nexus Reconsideredeng
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@article{Meinhard2012-05Globa-48605,
  year={2012},
  doi={10.1111/j.1467-9396.2012.01021.x},
  title={The Globalization-Welfare State Nexus Reconsidered},
  number={2},
  volume={20},
  issn={0965-7576},
  journal={Review of International Economics},
  pages={271--287},
  author={Meinhard, Stephanie and Potrafke, Niklas}
}
kops.citation.iso690MEINHARD, Stephanie, Niklas POTRAFKE, 2012. The Globalization-Welfare State Nexus Reconsidered. In: Review of International Economics. Wiley. 2012, 20(2), pp. 271-287. ISSN 0965-7576. eISSN 1467-9396. Available under: doi: 10.1111/j.1467-9396.2012.01021.xdeu
kops.citation.iso690MEINHARD, Stephanie, Niklas POTRAFKE, 2012. The Globalization-Welfare State Nexus Reconsidered. In: Review of International Economics. Wiley. 2012, 20(2), pp. 271-287. ISSN 0965-7576. eISSN 1467-9396. Available under: doi: 10.1111/j.1467-9396.2012.01021.xeng
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kops.sourcefieldReview of International Economics. Wiley. 2012, <b>20</b>(2), pp. 271-287. ISSN 0965-7576. eISSN 1467-9396. Available under: doi: 10.1111/j.1467-9396.2012.01021.xdeu
kops.sourcefield.plainReview of International Economics. Wiley. 2012, 20(2), pp. 271-287. ISSN 0965-7576. eISSN 1467-9396. Available under: doi: 10.1111/j.1467-9396.2012.01021.xdeu
kops.sourcefield.plainReview of International Economics. Wiley. 2012, 20(2), pp. 271-287. ISSN 0965-7576. eISSN 1467-9396. Available under: doi: 10.1111/j.1467-9396.2012.01021.xeng
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