Competition states in the neoliberal era: Towards third-generation regulation theory

Abstract

The Varieties of Capitalism approach envisages a process by which national capitalisms converge towards two distinct institutional formations. In contrast, it is argued here that countries singularly converge towards the regulatory bias of the prevailing model of development, but divergence exists within this convergence because unevenly developing countries respond contingently to the regulatory dilemmas of capitalism. This claim is empirically assessed for the neoliberal model of development. The findings show that countries prioritize competitiveness by pursuing differing mixes of neoliberal and non-neoliberal elements. This variation is mapped onto a six-pronged typology of ‘competition states’. Overall, this revised regulation approach broadens and deepens insights into national regulatory dilemmas and responses to the prevailing model of development.