The Weakened Nation State: Economic Globalization and Regime Convergence
In this chapter, we will look more closely at the possible factors behind regulatory changes. After a short methodological note, we will focus particularly on the arguments and developments connected to economic globalization as the overarching driver of change. Although in reality globalization can be assumed to come to life through a mutual constitution of both markets and governments, there are clearly certain evolutionary traits independent of government or ‘freed’ from government through liberalization that form the constitutive force for institutional adjustment. We understand globalization as the growing interconnectedness of markets, which allows efficiency improvements in the allocation of resources mostly due to falling transaction costs.
KeywordsForeign Direct Investment Gross Domestic Product Capital Market Stock Exchange Investor Protection
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