Economic interdependence, international regimes, and domestic strategies of industrial adjustment

This review attempts to assess the validity and usefulness of the arguments of the so-called ‘International Regimes’ approach and the political-institutional view with respect to economic policy formation and economic performance. In particular, the works of Keohane and Krasner on the one hand, and of Katzenstein on the other are examined. It turns out that both viewpoints can largely contribute to a better understanding of why economic interdependence is such a vital factor for domestic politics and policies. At the same time it appears also to be evident that ‘corporatism’ can be an asset in weathering the effects of these growing international economic pressures. Yet both approaches have serious theoretical and methodological weaknesses. The concept of ‘International Regime’ remains too vague and, in addition, is empirically difficult to pin down. Moreover, it seems unable to account for much extant discord.‘Corporatism’ is also prone to these faults as well as tending to over explain certain developments, which may render cross-national differences in economic performance as incomprehensible. Notwithstanding these shortcomings, there is so much to build on that both approaches merit further attention and discussion.