Doctoral Dissertation Research Project 'Particularistic' Liberalism: Industries, Institutions, and Influence in Liberal Market Economies

Duke University, Durham NC

Investigators

Abstract

Globalization's onset inspired predictions about convergence of capitalist economies to American-style liberalism. Even dissenters agreed on liberalism's comparative advantages: fewer regulations, less particularistic policy making, and swift asset redeployment. Ironically, however, this consensus has coincided with striking departures from laissez-faire in so-called liberal states. Neither the convergence school nor its critics can explain when and why the liberal market economies (LMEs) in the UK, the US, and Canada stray from laissez-faire. This Doctoral Dissertation Research Support project posits that political institutions explain LMEs departures from liberalism and differences among the three countries policies. First, party discipline, combined with ideology, conditions politicians. Incentives to adopt universalistic policies versus particularistic policies to benefit specific sectors. Where party discipline is weak, particularism is greater than where it is strong. Second, federalism leads to inter-state bids for mobile industries capable of making credible exit threats. This research project employs evidence from interviews, quantitative analyses, and case studies, to investigate links between political institutions and industry policymaking. National Science Foundation support improves this dissertation by funding interviews with actors and policymakers in three U.S industries: steel, autos, and pharmaceuticals. Data will be collected on firm's policy preferences; lobbying and campaign contributions; and taxation, research and development, industry location, and industry consolidation policies. This research contributes to the debate about globalization and domestic policy by systematically testing the relationship between political institutions and policy particularism.