Miguel Afonso Caetano"We know that capitalism manifests in different ways, but how did these differences arise? This paper draws on the Varieties of Capitalism (VoC) framework to understand how market economies differ across regions of the world today. In this paper, I argue that international trade during the first wave of globalization was fundamental in creating economic divergence across regions. Specifically, I contend that the international division of labor in the nineteenth century influenced regions in distinct ways. In North America, this trade system fostered an economy focused on agricultural products for the export market, which led to the development of a Liberal Market Economy (LME) model. In Continental Europe, the trade system promoted an economy centered on industrial goods for export, leading to the emergence of a Coordinated Market Economy (CME) model. In Latin America, the trade system encouraged an economy based on raw materials for export, resulting in the formation of a Hierarchical Market Economy (HME) model. Through three historical case studies, I provide a detailed account of these mechanisms and show that adopting an international perspective yields a deeper understanding of the emergence of national economic systems."
https://www.tandfonline.com/doi/full/10.1080/09692290.2025.2605122#abstract
#Capitalism #EconomicHistory #VarietiesOfCapitalism #PoliticalEconomy
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