Hierarchical Market Economies and Varieties of Capitalism in Latin America
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HME o08 all (2).pdf
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Author(s)
Schneider, Ben Ross
Date Issued
August 2009
Journal
Journal of Latin American Studies
Publisher
Cambridge University Press
Citation
SCHNEIDER, BEN ROSS. “Hierarchical Market Economies and Varieties of Capitalism in Latin America.” Journal of Latin American Studies 41.03 (2009) : 553-575.
Version
Author's final manuscript
Abstract
The extensive scholarship on ‘varieties of capitalism’ offers some conceptual and
theoretical innovations that can be fruitfully employed to analyze the distinctive institutional
foundations of capitalism in Latin America or what could be called hierarchical market economies
(HMEs). This perspective helps identify four core features of HMEs in Latin America that
structure business access to essential inputs of capital, technology, and labor: 1) diversified
business groups, 2) multinational corporations (MNCs), 3) low-skilled labor, and 4) atomistic
labor relations. Overall non-market, hierarchical relations in business groups and MNCs are
central in organizing capital and technology, and are also pervasive in labor market regulation,
union representation, and employment relations. Important complementarities exist among these
features especially between MNCs and diversified business groups, as well as mutually reinforcing
tendencies between these forms of corporate governance and general under investment in skills
and in well mediated employment relations. These four features of HMEs, their common reliance
on hierarchy, and the particular interactions among them add up to a distinct variety of capitalism,
different from those identified in developed countries and other developing regions.
MIT Department
Massachusetts Institute of Technology. Department of Political Science
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Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1017/S0022216X09990186
