Boyer: The Convergence Hypothesis Revisited

Boyer, R, and CEPREMAP (Center). 1993. The Convergence Hypothesis Revisited: Globalization But Still the Century of Nations? CEPREMAP.

The convergence argument seed domestic institutions and unique attributes being increasingly homogenized as the logic of capital dictates a certain kind of economic performance and institutional construction so as to maximize efficiency of production and transaction. However, Boyer argues that this strong hypothesis may miss the mark a bit, and that the end of the nation-state should not be glibly foretold. Instead, one should see this transition as a diverse process where different institutions matter.

"The argument proceeds along the following lines: First, ambiguities in the definition of convergence are spelled out by disentangling three distinct meanings: economic convergence, similarity in the style of development, and finally the characteristics of institutional settings that organize interactions between economy and polity. Second, when precise tests of the main macroeconomic variables are built, we see that no clear trend to convergence or divergence emerges. Third, even though the socialist bloc has collapsed, this has not reduced diversity. Rather it has revealed the coexistence and competition of various kinds of capitalism" (30).

"According to the first definition of convergence, the globalization of finance, labor, technologies, and products proceeds so that each nation comes to resemble a small-or medium-size firm in an ocean of pure and perfect competition. Consequently, any Keynesian-style intervention is bound to fail, given that the competition is now international and foreign producers will capture the domestic market if local producers do not adjust to the costs and prices achieved by competitors" (30).


"For many social scientist, convergence has another meaning: not pure economic performance, but the basic constitutional order, organizing interactions between polity and economy...Convergence in this sense is to be demonstrated by the collapse of authoritarian regimes and their replacement by more democratic constitutions" (31).

The third possibility is the most complex option, and involved mixed convergence: each economy is a combination of a wide variety of distinct factors that help to shape its output. If these institutions matched closely with the institutions of another economy and that economy was performing better, it would be possible to converge.

Boyer then explores empirical data on convergence of productivity since WWII. The author finds the evidence to be mixed and argues that results depend heavily on sample size and selection.

There is some evidence that things have converged in the late 20th century. However, this is not universal, and this evidence does not take into consideration that convergence typically occurs within a core set of countries that have already experienced a certain degree of industrialization and development.

"The 1990s and the next century, too, are likely to be still the epoch of nations. The complex set of contradictory forces that are pushing simultaneously toward convergence and divergence are far from moving toward a single best institutional design" (59).

The following chapter is also excellent, though I did not write an abstract:

Wade, R. 1996. Globalization and its limits: reports of the death of the national economy are greatly exaggerated. National Diversity and Global Capitalism: 60-88.