This paper seeks to give a broad overview of the major developments in the French economic order
since the Second World War. First by enlarging upon historical changes in the French economic
policy and further by describing the structure of the economic sectors of the French economy today,
focusing on the French companies. The strengths and weaknesses of the French industrial production
will be reflected by an analysis of its export and import sectors. As a theoretical base for the paper serves the Varieties of Capitalism approach by Hall and Soskice. In their theory of comparative capitalism they regard France as one possible model of capitalism, namely in between a coordinated and a liberal market economy (CME/LME). In this paper Hall and Soskice´s
theory is supposed to have an explanatory function for the described institutional characteristics in the
French economic order. Generally Hall and Soskice´s approach has to be seen in the tradition of
comparative political economy, yet going beyond former theories as Shonfield´s modernization
approach, neocorporatism or the social systems of production approach. By drawing on game theory
Hall and Soskice even create a interdisciplinary approach addressing both econonomics and political
scientists. Hall/Soskice try to provide a new theoretical framework to analyse and understand the
nationa l similarities and differences in political and economic institutions, shifting the focus of
attention to the role of firms in the economic performance and the institutions that condition or alter
interaction between economic actors. In these interactions, various actors e.g. firms rationally try to
defend their interests. For firms the five most important interaction spheres vital for the firms
development, production and profitability are industrial relations, vocational training and education,
corporate governance, inter- firm relations and the interaction with their own employees. Interactions
like these often create uneven information levels and thus entail coordination problems. Hall and
Soskice take the view that the different ways in which firms handle these coordination problems can
be used to compare national political economies. Firms in LMEs rather tend to solve their
coordination problems with the help of market mechanisms. Firms in CMEs refer to non-market
relationships, e.g. institutions that promote the exchange of information among actors. [...]
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Major shifts in the French economic order
- Historical overview of the French economic policies shaping the French economic order
- Economic sectors in France- their development, their contribution to the GDP and to employment
- French enterprises- sizes, employees, production and worldwide activity
- French exports and imports
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper provides an overview of major developments in the French economic order since World War II, analyzing shifts in economic policy and the structure of economic sectors. It uses Hall and Soskice's Varieties of Capitalism approach as a theoretical framework to understand the French model, situated between coordinated and liberal market economies. The analysis considers the role of firms, institutional characteristics, and the interplay between state and economy.
- Transformation of the French economy from agricultural to industrial power.
- Shift from interventionist policies ("dirigisme") to a more market-oriented economy.
- Role of the French state in shaping economic policy and its relationship with firms.
- Analysis of French economic sectors, their contribution to GDP and employment.
- Examination of French exports and imports, reflecting the strengths and weaknesses of industrial production.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the paper's objective: to provide a broad overview of the major developments in the French economic order since the Second World War. It utilizes the Varieties of Capitalism approach by Hall and Soskice as a theoretical framework, positioning France as a model between coordinated and liberal market economies. The chapter emphasizes the explanatory function of Hall and Soskice's theory in understanding the institutional characteristics of the French economic order and highlights the theory's interdisciplinary approach, drawing on game theory to address economic and political aspects. It also underscores the role of firms in economic performance and the institutions that shape interactions among economic actors. Finally, it sets the stage for the subsequent analysis by outlining the importance of coordination problems, market mechanisms versus non-market relationships, informal rules and cultural influences in shaping firm behavior, and the concept of institutional complementarities.
Major shifts in the French economic order: This chapter details two major shifts in the post-war French economy. The first, between 1958 and 1973, involved the successful transformation from an agricultural economy to a modern industrial power. The second, from 1986 to 1995, marked a shift towards a market-oriented economy, significantly restructuring the production regime. The chapter highlights Hancké's conclusion that a new model emerged, retaining elements of the old system but integrated within the international capital market. This shift is linked to changes in industrial policy, particularly the evolving relationship between the state and the economy. It discusses the transition from interventionist "dirigisme" policies to deregulatory reforms and privatization, spurred by macroeconomic conditions, European Community membership, and the European Monetary System. The chapter also notes the persistence of certain aspects of "dirigisme," including the "noyau dur" of shareholders, highlighting the continued influence of the state in shaping economic relations and preserving institutional advantages in a globalized context.
Historical overview of the French economic policies shaping the French economic order: This section delves into the historical context of French economic policies, tracing the roots of interventionism back to Jean-Baptiste Colbert's policies under Louis XIV. It connects modern "dirigism" to this historical legacy, emphasizing the state's extensive control over businesses and its formulation of proactive economic policies. The chapter analyzes the culmination of dirigisme in the early 1980s, marked by nationalization and restructuring of enterprises, and relates this to Hall's concept of social learning within the state. The subsequent shift away from dirigisme in 1983, with deregulatory reforms and privatization, is examined, highlighting the role of macroeconomic factors, global recession, and the influence of the European Community and the European Monetary System. The chapter discusses the continuation of state influence through the "noyau dur" system and explains how this mechanism fostered cooperation among actors and reduced uncertainty, impacting the overall economic performance.
Schlüsselwörter (Keywords)
French economy, economic policy, dirigisme, Varieties of Capitalism, Hall and Soskice, coordinated market economy, liberal market economy, industrial policy, privatization, deregulation, institutional complementarities, state-economy relations, firm behavior, comparative political economy, globalization.
Frequently Asked Questions: A Comprehensive Language Preview of the French Economic Order
What is the main topic of this language preview?
This language preview offers a thorough overview of the French economic order's major developments since World War II. It analyzes shifts in economic policy and the structure of economic sectors, using Hall and Soskice's Varieties of Capitalism as a theoretical framework.
What are the key themes explored in the preview?
Key themes include the transformation of the French economy from agricultural to industrial; the shift from interventionist ("dirigisme") policies to a more market-oriented approach; the role of the French state in shaping economic policy and its relationship with firms; an analysis of French economic sectors, their contribution to GDP and employment; and an examination of French exports and imports.
What theoretical framework is used in the analysis?
The analysis utilizes Hall and Soskice's "Varieties of Capitalism" approach, positioning France as a model situated between coordinated and liberal market economies. This framework helps understand the institutional characteristics of the French economic order and the interplay between state and economy.
What are the major shifts in the French economic order discussed?
Two major shifts are highlighted: (1) the transformation from an agricultural to a modern industrial economy between 1958 and 1973; and (2) the shift towards a market-oriented economy from 1986 to 1995, involving deregulation and privatization, while still retaining some aspects of the previous "dirigiste" system.
What is "dirigisme," and what role did it play in the French economy?
"Dirigisme" refers to the French state's extensive control over businesses and its proactive economic policies. While initially crucial for France's industrialization, it eventually gave way to more market-oriented reforms, although some elements of state influence persisted.
What is the role of the French state in shaping the economy?
The French state played, and continues to play, a significant role, ranging from extensive interventionist policies ("dirigisme") to a more nuanced involvement even after market-oriented reforms. The "noyau dur" system, for example, illustrates the continued state influence and its impact on cooperation and reduced uncertainty among actors.
What is the significance of the "noyau dur" system?
The "noyau dur" refers to a core group of shareholders, highlighting the persistent influence of the state in shaping economic relations and preserving institutional advantages even in a globalized context. It fostered cooperation and reduced uncertainty.
What are the key economic sectors analyzed, and what is their contribution to the economy?
The preview analyzes various French economic sectors, examining their development, contribution to GDP, and impact on employment. The specific sectors are not detailed in the preview's summary, but the analysis aims to comprehensively cover them.
What information is provided on French exports and imports?
The preview examines French exports and imports to reflect the strengths and weaknesses of industrial production and the country's position within the global market.
What are the key chapters and their summaries?
The preview includes summaries for an Introduction, a chapter on Major Shifts in the French Economic Order, and a chapter providing a Historical Overview of French Economic Policies. Each summary gives a detailed overview of its respective chapter's content and analysis.
What keywords describe the content of this language preview?
Keywords include: French economy, economic policy, dirigisme, Varieties of Capitalism, Hall and Soskice, coordinated market economy, liberal market economy, industrial policy, privatization, deregulation, institutional complementarities, state-economy relations, firm behavior, comparative political economy, and globalization.
- Quote paper
- Joanna Mastalerek (Author), 2004, French Economic Order, A brief overview of the major shifts in the French economy,the economic sectors and companies in France, Munich, GRIN Verlag, https://www.grin.com/document/34911
