World Systems and Globalization
there is consensus on the possibility of a relationship between globalization and welfare state, although the exact nature of this relationship remains ambiguous. The ambiguity in the relationship between globalization and the welfare state resulted in numerous empirical studies that attempted to scrutinize previous empirical studies on the subject. According to Brady et al. globalization is the maximization of international economic exchange (922). Additionally, Brady et al. Thirdly, Brady et al. (924) evaluates the relationship between globalization and its curvilinear effects and economic convergence on the welfare state. Initially, globalization expands causes economic expansion, but as it develops, it leads to economic decline for mature and generous welfare states (Huber & Stephens 237-240). In explaining the curvilinear relationship between welfare state and globalization, researchers stated that globalization made citizens to cuts their expenses towards the average level of welfare standards, concluding that highly globalized economies have high welfare generosity (Cameron, Rodrick).
Many empirical studies concluded that globalization causes generous welfare states to reduce their welfare, and cause expansion for least generous countries. As the debate on the regulatory capacity of the state continues, the element of the position of the state in the world-system provides a better perspective in understanding critical aspects like the government spending and ideology. Researchers continue to conduct empirical studies in evaluating whether states can continue to have regulatory capacities in economies that are increasingly becoming globalized. Consequently, the other issue of concern is determining whether there is a relationship between economic integration and the convergence of states. Traditionally, the regulatory tools of the state included macroeconomic and industrial policies. On the macroeconomic regulatory capacity, the nation state is coupled with two dynamics.
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