How have market and state shaped the long-term coevolution of
economic performance and social protection during the nineteenth
century and post–World War II waves of globalization associated
with British laissez-faire liberalism and U.S.-embedded liberalism?
Under the impulse of seemingly ever-intensifying globalization, this
question is emerging at the core of a novel body of political economy
research that seeks to compare the two waves of globalization to draw
useful lessons from the past. This research also reflects the concerns
recently voiced by neoliberals and neointerventionists about the
long-term stability and viability of post–World War II embedded
liberalism. Satisfactory investigations of how market and state shape
the long-term coevolution of economic performance and social protection
in the two regimes remain lacking. Cointegration analyses of the two
hegemonic powers that shaped the evolution of the two
regimes—nineteenth-century Great Britain and post–World War
II United States—demonstrate that the complementarity of market
and state in embedded liberalism is associated with better long-term
economic performance and social protection.I
thank the following people for their help and support in developing this
project: Katarina Juselius, Soren Johansen, Mike Artis, Ilijan Georgiev,
Suzanne Perry, Ed Mansfield, Dennis Quinn, Lars-Erik Cederman, Ron Jepperson,
Mark Kesselman, Luis Moreno, Martin Rhodes, Benedicta Marzinotto, Ron King,
David Clinton, and the participants in the Nordic Project funded by the
Danish Social Sciences Research Council. Two anonymous reviewers provided
valuable suggestions. A Jean Monnet Fellowship from the Robert Schuman
Center for Advanced Studies at the European University Institute provided
financial support for the project. Any errors are my own.