The Globalization-welfare State Nexus Reconsidered

Meinhard, Stephanie; Potrafke, Niklas

The Globalization-welfare State Nexus Reconsidered

Files

Meinhard_0-270984.pdf(2.07 MB)

Date

2011

Authors

Meinhard, Stephanie

Potrafke, Niklas

Series

Working Paper Series / Department of Economics; 2011-27

Publication type

Working Paper/Technical Report

Abstract

Two 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. We re-examine the evidence by investigating a yearly panel dataset of 186 countries for the 1970-2004 period. We use data compiled by the Penn World Tables on government sector size and employ the KOF 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 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.

Subject (DDC)

330 Economics

Keywords

globalization, size of government, welfare state

Cite This

ISO 690

MEINHARD, Stephanie, Niklas POTRAFKE, 2011. The Globalization-welfare State Nexus Reconsidered

BibTex

@techreport{Meinhard2011Globa-29959,
  year={2011},
  series={Working Paper Series / Department of Economics},
  title={The Globalization-welfare State Nexus Reconsidered},
  number={2011-27},
  author={Meinhard, Stephanie and Potrafke, Niklas}
}

RDF

<rdf:RDF
    xmlns:dcterms="http://purl.org/dc/terms/"
    xmlns:dc="http://purl.org/dc/elements/1.1/"
    xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#"
    xmlns:bibo="http://purl.org/ontology/bibo/"
    xmlns:dspace="http://digital-repositories.org/ontologies/dspace/0.1.0#"
    xmlns:foaf="http://xmlns.com/foaf/0.1/"
    xmlns:void="http://rdfs.org/ns/void#"
    xmlns:xsd="http://www.w3.org/2001/XMLSchema#" > 
  <rdf:Description rdf:about="https://kops.uni-konstanz.de/server/rdf/resource/123456789/29959">
    <bibo:uri rdf:resource="http://kops.uni-konstanz.de/handle/123456789/29959"/>
    <dc:creator>Meinhard, Stephanie</dc:creator>
    <dcterms:rights rdf:resource="https://rightsstatements.org/page/InC/1.0/"/>
    <dspace:hasBitstream rdf:resource="https://kops.uni-konstanz.de/bitstream/123456789/29959/3/Meinhard_0-270984.pdf"/>
    <dcterms:title>The Globalization-welfare State Nexus Reconsidered</dcterms:title>
    <dspace:isPartOfCollection rdf:resource="https://kops.uni-konstanz.de/server/rdf/resource/123456789/46"/>
    <dcterms:abstract xml:lang="eng">Two 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. We re-examine the evidence by investigating a yearly panel dataset of 186 countries for the 1970-2004 period. We use data compiled by the Penn World Tables on government sector size and employ the KOF 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 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.</dcterms:abstract>
    <dc:contributor>Meinhard, Stephanie</dc:contributor>
    <foaf:homepage rdf:resource="http://localhost:8080/"/>
    <dc:creator>Potrafke, Niklas</dc:creator>
    <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/>
    <dcterms:available rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2015-02-23T13:05:02Z</dcterms:available>
    <dc:rights>terms-of-use</dc:rights>
    <dc:language>eng</dc:language>
    <dc:contributor>Potrafke, Niklas</dc:contributor>
    <dcterms:issued>2011</dcterms:issued>
    <dc:date rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2015-02-23T13:05:02Z</dc:date>
    <dcterms:hasPart rdf:resource="https://kops.uni-konstanz.de/bitstream/123456789/29959/3/Meinhard_0-270984.pdf"/>
    <dcterms:isPartOf rdf:resource="https://kops.uni-konstanz.de/server/rdf/resource/123456789/46"/>
  </rdf:Description>
</rdf:RDF>