Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168586
Authors: 
Ahlborn, Markus
Schweickert, Rainer
Year of Publication: 
2017
Series/Report no.: 
PFH Forschungspapiere/Research Papers, PFH Private Hochschule Göttingen 2017/01
Abstract: 
The literature on economic systems and corresponding empirical studies have largely focused on a classification for developed countries, while other world regions have only partly been included and/or not compared to established OECD prototypes on an income-adjusted basis. In our macro clustering approaches, correct for the income bias in clustering variables. We are therefore able to include a worldwide sample of 115 developed and developing countries, the latter including transition countries. The major result from using income adjusted variables is that developing countries join the liberal OECD prototype economies in the world of inequality. On the other hand, a large part of Asian developing countries as well all transition countries join the coordinated and liberal European market economies in the world of equality. As a robust result, European Nordic and transition countries form a cluster combining high levels of innovation and equality of income differences are phased out. At the same time, as argued by La Porta et al. (2008) and Lange et al. (2006), the distribution of non-transition developing countries between and within these worlds of equality and inequality reveals a clear distinction between British vs. other colonial heritages as one driver of economic systems today.
Subjects: 
Economic Systems
Varieties of Capitalism
Worlds of Welfare States
Cluster Analysis
Principal Components Analysis
OECD
Developing Countries
JEL: 
H10
P10
P51
Document Type: 
Working Paper

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