Globalization, harmonization, and competition

Economic globalization – defined here as the cluster of technological, economic, and political innovations that reduce the barriers to economic, political, and cultural exchange – is frequently cited as a source for policy convergence. However, the precise causal links between these two variables often go unexplored. ¹ Multiple narratives are available, including the influence of global civil society (Wapner 1995; Keck and Sikkink 1998), the role of international governmental organizations (Meyer et al. 1997; Finnemore 1996), the prominence of epistemic communities (Haas 1992; Braithwaite and Drahos 1999), and the dominance of capital markets (Goodman and Pauly 1993). However, the trouble with most of these theoretical approaches is the lack of variation in the independent variable. According to these theories, globalization increases the number and power of factors and actors that inexorably promote policy convergence. Structural theories lack the capacity to explain variation in convergence outcomes (Drezner 2001).