Internationalisation and Economic Institutions:

Abstract

AbstractThe book examines when, how, and why internationalisation affects decisions about national economic institutions. It confronts questions at the heart of debates in political economy and comparative politics. What does internationalisation of markets mean? Who are its carriers in domestic arenas? Through which mechanisms does it operate? What are its effects on institutional reform? To respond to these questions, the book develops a ‘policy analysis’ approach to market internationalisation and domestic institutions. It draws on two literatures, the second image reversed approach and historical institutionalist/‘varieties of capitalism’ studies, but seeks to overcome their limitation. In particular, it offers a definition of market internationalisation that includes policy forms, namely regulatory change in powerful overseas nations and by the EU, and gives due attention to policy processes and mechanisms. The book shows that contrary to expectations, transnational technological and economic factors made little impact, whereas regulatory reforms by the US, Britain, and the EU, undermined long-standing national institutions. Policy forms of internationalisation were more influential because they become part of domestic decision-making through a broader range of mechanisms than economic efficiency or distributional conflicts. Indeed, reform was led by domestic actors, not just socio-economic interests but also political and state actors, who altered their strategies and used policy forms of internationalisation to build new coalitions and legitimate change. The book's arguments are sustained by an analysis of five strategic sectors (securities trading, telecommunications, electricity, airlines, and postal services) in Britain, France, Germany, and Italy, over the period 1965-2005. It combines cross-national, historical, and cross-sectoral comparisons to show the carriers mechanisms and outcomes of internationalisation.