Navigating economic governance: German export and investment promotion between varieties of capitalism and multi-level governance

Bossdorf, Maximilian

Abstract

This thesis examines the German system of Export and Investment Promotion Agencies (EIPAs) using a combination of the Varieties of Capitalism (VOC) and Multi-Level Governance (MLG) approaches. It challenges the traditional application of VOC and using the MLG approach argues for an expansion of its theoretical framework to account for a hybrid type of actor organisation and governance interactions across multiple levels. Accordingly, this thesis examines the theoretical framework of both approaches before their utilisation. It then proposes to address their shortcomings by examining whether the VOC approach can be refined and further improved by combining it with aspects of MLG to better reflect the complex interactions between different state and non-state actors and their type or organisation within a country’s economy.

This is accomplished in several ways. First, an in-depth case study of the Export and Investment Promotion Agencies (EIPA) sector in Germany on multiple, vertical levels of governance is conducted. To do so, a combination of 28 elite interviews and key primary sources such as financial documents, official program reports and parliamentary hearings were used. This is followed by a case within a case example examining Germany’s single largest state-funded program for export promotion, called the Export Initiative Renewable Energy (Exportinitiative Erneuerbare Energien).

Overall, the thesis argues for a combined VOC and MLG approach and rejects VOC's traditional dualism. It instead recognises the possibility of a hybrid type of actor organisation within market economies. The analysis identified a new type of actor organisation, referred to as “coordinated competition”. This was based on emerging evidence showing that regional, federal and international level actors display complex and opportunistic behaviours which are best understood in the context of a hybrid type of VOC market system. The results also show the role of the state as a direct market actor on both a regional and federal level. These findings both challenge the traditional understanding of VOC and confirm several of the criticisms of the approach found in the academic literature. The case supports the argumentation that both VOC and MLG are valuable heuristic analytical devices which can benefit from an expansion of their theoretical frameworks.

Based on the results of the analysis of the German EIPA system, this thesis addresses three main gaps in the academic literature. First, it provides a detailed analysis of the setup of the German EIPA system. Despite its size, history and economic significance, Germany’s EIPA system, along with EIPAs in general, has received little academic attention. This has resulted in them being somewhat of a ‘black box’ to academic research. The results of this thesis provide a rich understanding of the governance systems and actor behaviours that could add to the overall academic understanding of EIPAs as actors in the political economy literature. Second, it illustrates that a combined VOC and MLG approach should be applied to accurately understand the complex governance relationships and forms of actor organisation that shape this sector of the German economy. This is critically important, as it allows one to take into consideration and incorporate different levels of governance structures and spheres of influence that were missing in the VOC literature. Finally, based on the case analysis of Germany, it argues that the VOC approach should be expanded to incorporate a new, ideal-type hybrid category, in which actors are organised via a combination of Coordinated Market Environment (CME) and Liberal Market Environment (LME) characteristics. This new hybrid type of VOC allows for a more precise reflection and analysis of the complex actor relationships found within Germany’s export and investment promotion system.

Citation

Bossdorf, M. Navigating economic governance: German export and investment promotion between varieties of capitalism and multi-level governance. (Thesis). University of the West of England. Retrieved from https://uwe-repository.worktribe.com/output/10732062

• Thesis Type: Thesis
• Deposit Date: May 2, 2023
• Publicly Available Date: Dec 13, 2023
• Public URL: https://uwe-repository.worktribe.com/output/10732062
• Award Date: Dec 13, 2023