Political Economy in International Perspective

2018 - 2019

Leiden University

MSc Public Administration

Specialisation Economics and Governance

Course information

Lecturer
Prof. O.P. van Vliet (o.p.van.vliet@law.leidenuniv.nl)

Secretariat Department of Economics

Steenschuur 25, room B2.07, 2311 ES Leiden, tel. 071-527 7756, daily between 9 and 12h.
E-mail: economie@law.leidenuniv.nl

Study load
5 ec

Programme
MSc Public Administration, Specialisation Economics and Governance

Course description
Globalisation, ageing of populations and high levels of unemployment pose difficult dilemmas
for policy-makers. On the one hand, policy-makers may pursue socio-economic reforms in
order to increase a country’s competitiveness or to improve the functioning of the labour
market. On the order hand, the reality is that such socio-economic reforms are politically
challenging. In this course, we study these kinds of dilemmas at the intersection of economics
and governance from an international comparative perspective. For example, questions that
we will address are: How do policy-makers adjust social assistance and unemployment benefit
schemes in times of increasing migration? To what extent do international trade and capital
flows trigger reforms of corporate income taxes? What is the effect of globalisation and
technological change on income inequality? To what extent did imports from China and
immigration from EU accession countries play a role in the Brexit referendum?

Weekly overview:
1. Introduction to comparative political economy
2. Political parties, corporatism and socio-economic reforms
3. Globalisation I
4. Globalisation II
5. Migration
6. Income inequality
7. Political economy in the aftermath of the financial crisis

Course objectives
- Understanding of key issues in the field of international economic integration and socio-
economic policy.
- Understanding of key theories and methods in the state-of-the-art academic research in
the field of political economy of globalisation, European integration and socio-economic
policy reforms.
- Ability to use and critically evaluate scientific research.
- Ability to build, present and defend well-grounded arguments in oral communication.

1
Mode of instruction
This course consists of seven interactive seminars. During a seminar, the theme of the week
will be introduced. Subsequently, students will present, review and discuss the study
materials themselves. For these activities, thorough preparation is required. The study
materials contain several state-of-the-art studies in the field of comparative political economy
on various topics.

Attendance
Attendance during the seminars is not compulsory, but it is necessary though:
- During the first seminar, we will make a presentation scheme for the rest of the course.
- Presentations and active class participation are a substantial component of the
assessment.

Assessment method
1. Written exam
 75% of the final course grade
 grade of 5.5 or higher is necessary to pass this course
 re-take possible
2. Presentations and class participation
 25% of the final course grade
 grade of 5.5 or higher is necessary to pass this course
 re-take not possible

Written exam
The written exam encompasses the literature and everything that is discussed during the
seminars.

Discussion of academic article

In the seminars in week 2 until week 7, students discuss an article published in an
international academic journal. This will be done by two groups of students in a form that is
conventional at academic conferences. The first group presents the article from the
perspective of the authors. In this presentation, at least the following elements will be
discussed: theory and hypotheses; research design, data, methods and techniques; results;
conclusions and policy implications. The second group provides a critical reflection. Both
groups make use of (powerpoint) slides and will get 10 minutes for their presentation.
Following this, all students will be expected to participate in the discussion.

For the purpose of assessment, students are required to send their slides to the lecturer prior
to the seminar.

Presentations will be assessed based on the following criteria:

Group “authors”:
- To what extent do the presenters discuss the main issues (theory and hypotheses;
research design, data, methods and techniques; results; conclusions and policy
implications) of the article?
- To what extent are the main issues explained correctly?
- Have the presenters used clear slides?
- Time management (no more than 10 minutes).
- Do the authors respond adequately to the discussants?

2
Group “discussants”
- To what extent do the discussants criticise the main issues (theory and hypotheses;
research design, data, methods and techniques; results; conclusions and policy
implications) of the article?
- To what extent are the main issues explained correctly?
- Have the presenters used clear slides?
- Time management (no more than 10 minutes).
- Do the discussants respond adequately to the authors?

Admission requirements
This course assumes knowledge of European economic integration (or international
economics), quantitative research methods and socio-economic policy analysis at third-year
bachelor level.

Schedule

Seminars: Wednesday 6 February – 20 March

1) 9.00 – 11.00h, CDH-SH/13.12
2) 11.00 – 13.00h, CDH-SH/13.12
3) 15.00 – 17.00h, CDH-SH/13.12

Exam
Tuesday 26 March 2019, 13.00 – 16.00h, Opera Zalencentrum

Retake
Tuesday 4 June 2018, 13.00 – 16.00h, Wijnhaven 201

3
Literature

Week 1: Introduction to comparative political economy

- Arts, W. and Gelissen, J. (2002) Three Worlds of Welfare Capitalism or More? A State-of-
the-Art Report. Journal of European Social Policy 12(2): 137-158.
- Starke, P. (2006) The Politics of Welfare State Retrenchment: A Literature Review. Social
Policy & Administration 40(1): 104-120.
- Green-Pedersen, C. (2004) The Dependent Variable Problem within the Study of Welfare
State Retrenchment: Defining the Problem and Looking for Solutions. Journal of
Comparative Policy Analysis 6(1): 3-14.
- Plümper, T., Troeger, V.E. and Manow, P. (2005) Panel data analysis in comparative
politics: Linking method to theory. European Journal of Political Research 44(2): 327-354.

Week 2: Political parties, corporatism and socio-economic reforms

- Pierson, P. (1996) The New Politics of the Welfare State. World Politics 48(2): 143-179.
- Allan, J.P. and Scruggs, L. (2004) Political Partisanship and Welfare State Reform in
Advanced Industrial Societies. American Journal of Political Science 48(3): 496-512.
- Rueda, D. (2006) Social Democracy and Active Labour Market Policies: Insiders, Outsiders
and the Politics of Employment Protection. British Journal of Political Science 36(3): 385-
406.
- Emmenegger, P. (2009) Barriers to entry: insider/outsider politics and the political
determinants of jobs security regulations. Journal of European Social Policy 19(2): 131-
146.

Week 3: Globalisation I

- Rodrik, D. (1998) Why Do Open Economies Have Bigger Governments? Journal of Political
Economy 106(5): 997-1032.
- Burgoon, B. (2001) Globalization and Welfare Compensation: Disentangling the Ties that
Bind. International Organization 55(3): 509-551.
- Swank, D. and S. Steinmo (2002) The New Political Economy of Taxation in Advanced
Capitalist Democracies. American Journal of Political Science 46(3): 642-655.
- Genschel, P., A. Kemmerling and E. Seils (2011) Accelerating Downhill: How the EU
Shapes Corporate Tax Competition in the Single Market. Journal of Common Market
Studies 49(3): 585-606.

Week 4: Globalisation II

- Yong Kwon, H. and J. Pontusson (2010) Globalization, labour power and partisan politics
revisited. Socio-Economic Review 8(2): 251-281.
- Walter, S. (2010) Globalization and the Welfare State: Testing the Microfoundations of the
Compensations Hypothesis. International Studies Quarterly 54(2): 403-426.
- Hays, J.C. , S.D. Ehrlich and C. Peinhardt (2005) Government Spending and Public
Support for Trade in the OECD: An Empirical Test of the Embedded Liberalism Thesis.
International Organization 59(2): 473-494.
- Iversen, T. and Cusack, T.R. (2000) The Causes of Welfare State Expansion:
Deindustrialization or Globalization? World Politics 52(3): 313-349.

4
Week 5: Migration

- De Giorgi, G. and M. Pellizzari (2009) Welfare migration in Europe. Labour Economics

16(4): 353-363.
- Kvist, J. (2004) Does EU Enlargement Start a Race to the Bottom? Strategic Interaction
among EU Member States in Social Policy. Journal of European Social Policy 14(3): 301-
318.
- Gaston, N. and G. Rajaguru (2013) International migration and the welfare state revisited.
European Journal of Political Economy 29: 90-101.
- Burgoon, B. (2014) Immigration, Integration, and Support for Redistribution in Europe.
World Politics 66(3): 365-405.

Week 6: Income inequality

- Autor, D.H., D. Dorn and G.H. Hanson (2015) Untangling Trade and Technology: Evidence
from Local Labour Markets. The Economic Journal 125(584): 621-646.
- Iversen, T. and A. Wren (1998) Equality, Employment, and Budgetary Restraint: The
Trilemma of the Service Economy. World Politics 50(4): 507-546.
- Mahler, V.A. (2004) Economic Globalization: Domestic Politics, and Income Inequality in
the Developed Countries. Comparative Political Studies 37(9): 1025-1053.

Week 7: Political economy in the aftermath of the financial crisis

- Ansell, B.W., J. Lawrence Broz and T. Flaherty (2018) Global capital markets, housing
prices, and partisan fiscal policies. Economics & Politics, DOI: 10.1111/ecpo.12111.
- Weisstanner, D. and K. Armingeon (2018) How redistributive policies reduce market
inequality: education premiums in 22 OECD countries. Socio-Economic Review, DOI:
10.1093/ser/mwy018.
- Colantone, I. and P. Stanig (2018) Global Competition and Brexit. American Political
Science Review 112(2): 201-218.