GLOBALIZATION AND INSTITUTIONAL CHANGE: ARE EMERGING MARKET ECONOMIES IN EUROPE AND ASIA CONVERGING?

It is often stated that globalization makes a “smaller” world by institutional convergence. Politico-economic orders become alike across the world. This article addresses institutional change triggered by the global financial crisis of 2008/2009 and by comparing developments in emerging market in Eu...

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Bibliographic Details
Published in:Economics, Management, and Financial Markets Management, and Financial Markets, 2014-12, Vol.9 (4), p.44-66
Main Author: Hoen, Herman W
Format: Article
Language:English
Subjects:
Analysis
Asia
Bureaucracy
Capitalism
Communism
Competition
Economic aspects
Economic crisis
Economic growth
Economy
Emerging markets
Europe
Financial crisis
Globalization
Institutional change
International finance
Liberalization
Market economies
Market economy
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Summary:It is often stated that globalization makes a “smaller” world by institutional convergence. Politico-economic orders become alike across the world. This article addresses institutional change triggered by the global financial crisis of 2008/2009 and by comparing developments in emerging market in Europe and Asia challenges the general conviction of worldwide convergence. The article starts from a “Variety of Capitalism” approach and argues that the emerging market economies in Europe are on the liberal side of the scale. On top of that, it perceives tentative convergence towards further liberal institutional design. With respect to emerging markets in Asia another development is observed. There is converging institutional change towards coordinated market economies characterized with strong state influence and an imperative bureaucracy. The convergence within the two groups of emerging market economies in Europe and Asia leads to the conviction of divergence between the groups.
ISSN:1842-3191
1938-212X