Corporatism, technological gaps and growth in oecd countries

Abstract

The main purpose of the present approach is to empirically demonstrate that the hypothesis "the corporatist economies have outperformed others in the 1970s" should be qualified. To do so, it is first necessary to account for the impact of technological catch-up processes which after World War II in Western industrial countries have been of central importance. Since the then existing technological gaps have narrowed in the course of time, catching-up potentials also have decreased, and thus economic growth. The analysis of corporatism led to the hypothesis that economies which are competitively organized have done as well as the corporatist economies. The true losers being those countries which are neither characterized by a high degree of national consensus nor by a highly competitive structure. The empirical results support this hypothesis for the 1970s when large supply shocks and monetary disturbances hit the world economy. © 1987 Institut fur Weltwirtschaft an der Universitat Kiel.