Strong Firms, Weak Banks: The Financial Consequences of Germany’s Export-Led Growth Model

References

• Albu, Nora, Alexander Herzog-Stein, Ulrike Stein, and Rudolf Zwiener. 2018. Arbeits- und Lohnstückkostenentwicklung 2017 im europäischen Vergleich. Düsseldorf: Institut für Makroökonomie und Konjunkturforschung.
   Google Scholar
• Allen, Matthew M. C. 2006. The Varieties of Capitalism Paradigm: Explaining Germany’s Comparative Advantage? Basingstoke: Palgrave Macmillan.
   Google Scholar
• Allen, Cian. 2018. “Revisiting External Imbalances: Insights from Sectoral Accounts”.
   Google Scholar
• Amable, Bruno. 2003. The Diversity of Modern Capitalism. Oxford: Oxford University Press.
   Google Scholar
• Azar, José, Martin C Schmalz, and Isabel Tecu. 2018. “Anticompetitive Effects of Common Ownership.” The Journal of Finance 73 (4): 1513–1565. doi:10.1111/jofi.12698.
   Web of Science ®Google Scholar
• Baccaro, Lucio, and Chiara Benassi. 2017. “Throwing out the Ballast: Growth Models and the Liberalization of German Industrial Relations.” Socio-Economic Review 15 (1): 85–115. doi:10.1093/ser/mww036.
   Web of Science ®Google Scholar
• Baccaro, Lucio, and Jonas Pontusson. 2016. “Rethinking Comparative Political Economy: The Growth Model Perspective.” Politics & Society 44 (2): 175–207. doi:10.1177/0032329216638053.
   Web of Science ®Google Scholar
• Baccaro, Lucio, and Jonas Pontusson. 2019. Social Blocs and Growth Models: An Analytical Framework with Germany and Sweden as Illustrative Cases. Unequal Democracies: Working Papers 7. Geneva: Université de Genève.
   Google Scholar
• Behringer, Jan, and Till van Treeck. 2018. “Income Distribution and the Current Account.” Journal of International Economics 114: 238–254. doi:10.1016/j.jinteco.2018.06.006.
   Web of Science ®Google Scholar
• Berger, Bennet, and Guntram B Wolff. 2017. The Global Decline in the Labour Income Share: is Capital the Answer to Germany’s Current Account Surplus? Brussels: Bruegel.
   Google Scholar
• Beyer, Jürgen, and Anke Hassel. 2002. “The Effects of Convergence: Internationalization and the Changing Distribution of Net Value Added in Large German Firms.” Economy and Society 31 (3): 309–332.
   Web of Science ®Google Scholar
• Beyer, Jürgen, and Martin Höpner. 2003. “The Disintegration of Organised Capitalism: German Corporate Governance in the 1990s.” West European Politics 26 (4): 179–198.
   Web of Science ®Google Scholar
• Bezemer, Dirk J. 2016. “Towards an ‘Accounting View’ on Money, Banking and the Macroeconomy: History, Empirics, Theory.” Cambridge Journal of Economics 40 (5): 1275–1295. doi:10.1093/cje/bew035.
   Web of Science ®Google Scholar
• Bezemer, Dirk J., Anna Samarina, and Lu Zhang. 2017. The Shift in Bank Credit Allocation: New Data and New Findings. Amsterdam: De Nederlandsche Bank.
   Google Scholar
• Blyth, Mark, and Matthias Matthijs. 2017. “Black Swans, Lame Ducks, and the Mystery of IPE's Missing Macroeconomy.” Review of International Political Economy 24 (2): 203–231.
   Web of Science ®Google Scholar
• Braun, Benjamin. 2016. “From Performativity to Political Economy: Index Investing, ETFs and Asset Manager Capitalism.” New Political Economy 21 (3): 257–273. doi:10.1080/13563467.2016.1094045.
   Web of Science ®Google Scholar
• Braun, Benjamin, and Marina Hübner. 2018. “Fiscal Fault, Financial fix? Capital Markets Union and the Quest for Macroeconomic Stabilization in the Euro Area.” Competition & Change 22 (2): 117–138.
   Web of Science ®Google Scholar
• Bundesbank. 2017. “The Performance of German Credit Institutions in 2016.” Monthly Report, Serptember, 51–85.
   Google Scholar
• Chen, Peter, Loukas Karabarbounis, and Brent Neiman. 2017. “The Global Rise of Corporate Saving.” Journal of Monetary Economics 89: 1–19. doi:10.1016/j.jmoneco.2017.03.004.
   Web of Science ®Google Scholar
• Culpepper, Pepper D. 2005. “Institutional Change in Contemporary Capitalism: Coordinated Financial Systems Since 1990.” World Politics 57 (2): 173–199. doi:10.1353/wp.2005.0016.
   Web of Science ®Google Scholar
• Deeg, Richard. 1999. Finance Capitalism Unveiled: Banks and the German Political Economy. Ann Arbor, MI: University of Michigan Press.
   Google Scholar
• Deeg, Richard. 2005. “Change From Within: German and Italian Finance in the 1990s.” In Beyond Continuity: Institutional Change in Advanced Political Economies, edited by Wolfgang Streeck, and Kathleen Thelen, 169–202. Oxford: Oxford University Press.
   Google Scholar
• Deeg, Richard. 2009. “The Rise of Internal Capitalist Diversity? Changing Patterns of Finance and Corporate Governance in Europe.” Economy and Society 38 (4): 552–579.
   Web of Science ®Google Scholar
• Deeg, Richard, and Iain Hardie. 2016. “What is Patient Capital and who Supplies it?” Socio-Economic Review 14 (4): 627–645. doi:10.1093/ser/mww025.
   Web of Science ®Google Scholar
• De Jong, Henk Wouter. 1997. “The Governance Structure and Performance of Large European Corporations.” Journal of Management & Governance 1 (1): 5–27. doi:10.1023/a:1009931211940.
   Google Scholar
• De Ville, Ferdi. 2018. “Domestic Institutions and Global Value Chains: Offshoring in Germany’s Core Industrial Sectors.” Global Policy 9 (S2): 12–20. doi:10.1111/1758-5899.12610.
   Google Scholar
• Di Carlo, Donato. 2018. “Does Pattern Bargaining Explain Wage Restraint in the German Public Sector?” MPIfG Discussion Paper 18/3. Cologne: Max Planck Institute for the Study of Societies.
   Google Scholar
• ECB. 2017. Report on Financial Structures. Frankfurt: European Central Bank.
   Google Scholar
• ECB. 2018. “Harmonised Competitiveness Indicators Based on Unit Labour Costs Indices for the Total Economy.” Accessed September 20, 2018. https://www.ecb.europa.eu/stats/ecb_statistics/escb/html/table.en.html?id=JDF_EXR_HCI_ULCT.
   Google Scholar
• Edwards, Jeremy, and Klaus Fischer. 1996. Banks, Finance and Investment in Germany. Cambridge: Cambridge University Press.
   Google Scholar
• Ergen, Timur. 2015. Große Hoffnungen und brüchige Koalitionen: Industrie, Politik und die schwierige Durchsetzung der Photovoltaik. Frankfurt: Campus Verlag.
   Google Scholar
• Faust, Michael. 2017. “A Typology of Shareholders and Constellations of Actors in the External Coalition of the Corporation. An Exploration for the German Case.” Paper submitted to EGOS 2017 Sub-theme 20: Financialization and its Societal Implications: Rethinking Corporate Governance and Shareholders. Copenhagen.
   Google Scholar
• Ferrando, Annalisa, and Alessandro Ruggieri. 2018. “Financial Constraints and Productivity: Evidence From Euro Area Companies.” International Journal of Finance & Economics 23 (3): 257–282. doi:10.1002/ijfe.1615.
   Web of Science ®Google Scholar
• Fichtner, Jan, Eelke M. Heemskerk, and Javier Garcia-Bernardo. 2017. “Hidden Power of the Big Three? Passive Index Funds, Re-Concentration of Corporate Ownership, and New Financial Risk.” Business and Politics 19 (2): 298–326. doi:10.1017/bap.2017.6.
   Web of Science ®Google Scholar
• Fuller, Gregory W. 2018. “Exporting Assets: EMU and the Financial Drivers of European Macroeconomic Imbalances.” New Political Economy 23 (2): 174–191. doi:10.1080/13563467.2017.1370444.
   Web of Science ®Google Scholar
• Glötzl, Florentin, and Armon Rezai. 2018. “A Sectoral Net Lending Perspective on Europe.” Cambridge Journal of Economics 42 (3): 779–795. doi:10.1093/cje/bex047.
   Web of Science ®Google Scholar
• Goldschmidt, Deborah, and Johannes F. Schmieder. 2017. “The Rise of Domestic Outsourcing and the Evolution of the German Wage Structure*.” The Quarterly Journal of Economics 132 (3): 1165–1217. doi:10.1093/qje/qjx008.
   Web of Science ®Google Scholar
• Grittersová, Jana. 2014. “Non-market Cooperation and the Variety of Finance Capitalism in Advanced Democracies.” Review of International Political Economy 21 (2): 339–371.
   Web of Science ®Google Scholar
• Hall, Peter A. 2017. “Varieties of Capitalism in Light of the Euro Crisis.” Journal of European Public Policy 25 (1): 7–30. doi:10.1080/13501763.2017.1310278.
   Web of Science ®Google Scholar
• Hall, Peter A., and David Soskice. 2001. “An Introduction to Varieties of Capitalism.” In Varieties of Capitalism. The Institutional Foundations of Comparative Advantage, edited by Peter A. Hall, and David Soskice, 1–68. Oxford: Oxford University Press.
   Google Scholar
• Hallerberg, Mark, and Jonas Markgraf. 2018. “The Corporate Governance of Public Banks Before and After the Global Financial Crisis.” Global Policy 9 (Supplement 1): 43–53.
   Google Scholar
• Hardie, Iain, David Howarth, Sylvia Maxfield, and Amy Verdun. 2013a. “Banks and the False Dichotomy in the Comparative Political Economy of Finance.” World Politics 65 (4): 691–728.
   Web of Science ®Google Scholar
• Hardie, Iain, David Howarth, Sylvia Maxfield, and Amy Verdun. 2013b. “Introduction: Towards a Political Economy of Banking.” In Market-based Banking and the International Financial Crisis, edited by Iain Hardie, and David Howarth, 1–21. Oxford: Oxford University Press.
   Google Scholar
• Hassel, Anke. 2014. “The Paradox of Liberalization: Understanding Dualism and the Recovery of the German Political Economy.” British Journal of Industrial Relations 52 (1): 57–81.
   Web of Science ®Google Scholar
• Hassel, Anke. 2017. “No way to Escape Imbalances in the Eurozone? Three Sources for Germany’s Export Dependency: Industrial Relations, Social Insurance and Fiscal Federalism.” German Politics 26 (3): 360–379.
   Web of Science ®Google Scholar
• Höpner, Martin. 2003. Wer beherrscht die Unternehmen? Shareholder Value, Managerherrschaft und Mitbestimmung in Deutschland. Frankfurt: Campus.
   Google Scholar
• Höpner, Martin. 2019. The German Undervaluation Regime Under Bretton Woods: How Germany Became the Nightmare of the World Economy. Cologne: Max Planck Institute for the Study of Societies.
   Google Scholar
• Höpner, Martin, and Mark Lutter. 2018. “The Diversity of Wage Regimes: Why the Eurozone is too Heterogeneous for the Euro.” European Political Science Review 10 (1): 71–96. doi:10.1017/S1755773916000217.
   Web of Science ®Google Scholar
• Hübner, Marina. forthcoming. Wenn der Markt Regiert: Die Politische Ökonomie der Europäischen Kapitalmarktunion. Frankfurt: Campus.
   Google Scholar
• Johnston, Alison, Bob Hancké, and Suman Pant. 2014. “Comparative Institutional Advantage in the European Sovereign Debt Crisis.” Comparative Political Studies 47 (13): 1771–1800. doi:10.1177/0010414013516917.
   Web of Science ®Google Scholar
• Johnston, Alison, and Aidan Regan. 2016. “European Monetary Integration and the Incompatibility of National Varieties of Capitalism.” JCMS: Journal of Common Market Studies 54 (2): 318–336. doi:10.1111/jcms.12289.
   Web of Science ®Google Scholar
• Jordà, Òscar, Moritz Schularick, and Alan M. Taylor. 2016. “The Great Mortgaging: Housing Finance, Crises and Business Cycles.” Economic Policy 31 (85): 107–152. doi:10.1093/epolic/eiv017.
   Web of Science ®Google Scholar
• Keller, Eileen. 2018. “Noisy Business Politics: Lobbying Strategies and Business Influence After the Financial Crisis.” Journal of European Public Policy 25 (3): 287–306. doi:10.1080/13501763.2016.1249013.
   Web of Science ®Google Scholar
• KfW. 2018. Hohe Eigenkapitalquoten im Mittelstand: KMU schätzen ihre Unabhängigkeit. Frankfurt am Main: Kreditanstalt für Wiederaufbau.
   Google Scholar
• Lane, Philip R., and Gian Maria Milesi-Ferretti. 2007. “The External Wealth of Nations Mark II: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970–2004.” Journal of International Economics 73 (2): 223–250. doi:10.1016/j.jinteco.2007.02.003.
   Web of Science ®Google Scholar
• Massoc, Elsa. 2019. “Banks, Power, and Political Institutions: the Divergent Priorities of European States Towards “Too-big-to-fail” Banks: The Cases of Competition in Retail Banking and the Banking Structural Reform.” Business and Politics, Advance Online Publication.
   Web of Science ®Google Scholar
• May, Christian, and Andreas Nölke. 2018. “The Delusion of the Global Corporation: Introduction to the Handbook.” In Handbook of the International Political Economy of the Corporation, edited by Christian May, and Andreas Nölke, 1–25. Cheltenham: Edward Elgar.
   Google Scholar
• Mertens, Daniel. 2015. Erst sparen, dann kaufen? Privatverschuldung in Deutschland. Vol. 82. Frankfurt: Campus.
   Google Scholar
• Mertens, Daniel. 2017. “Putting ‘Merchants of Debt’in Their Place: the Political Economy of Retail Banking and Credit-based Financialisation in Germany.” New Political Economy 22 (1): 12–30.
   Web of Science ®Google Scholar
• Mody, Ashoka. 2018. Eurotragedy: A Drama in Nine Acts. Oxford: Oxford University Press.
   Google Scholar
• Naqvi, Natalya, Anne Henow, and Ha-Joon Chang. 2018. “Kicking Away the Financial Ladder? German Development Banking Under Economic Globalisation.” Review of International Political Economy 25 (5): 672–698. doi:10.1080/09692290.2018.1480515.
   Web of Science ®Google Scholar
• Palier, Bruno, and Kathleen Thelen. 2010. “Institutionalizing Dualism: Complementarities and Change in France and Germany.” Politics & Society 38 (1): 119–148. doi:10.1177/0032329209357888.
   Web of Science ®Google Scholar
• Redeker, Nils. 2019. The Politics of Stashing Wealth: The Demise of Labor Power and the Global Rise of Corporate Savings. Zürich: Center for Comparative and International Studies.
   Google Scholar
• Regan, Aidan. 2017. “The Imbalance of Capitalisms in the Eurozone: Can the North and South of Europe Converge?” Comparative European Politics 15 (6): 969–990. doi:10.1057/cep.2015.5.
   Web of Science ®Google Scholar
• Reurink, Arjan, and Javier Garcia-Bernardo. 2019. Competing with Whom? European Tax Competition, the “Great Fragmentation of the Firm,” and Varieties of FDI Attraction Profiles. MPIfG Discussion Paper 19/9. Cologne: Max Planck Institute for the Study of Societies.
   Google Scholar
• Ryan, Robert M., Conor M. O’Toole, and Fergal McCann. 2014. “Does Bank Market Power Affect SME Financing Constraints?” Journal of Banking & Finance 49 (Supplement C): 495–505. doi:10.1016/j.jbankfin.2013.12.024.
   Google Scholar
• Scharpf, Fritz W. 2018. International Monetary Regimes and the German Model. Cologne: Max Planck Institute for the Study of Societies.
   Google Scholar
• Schwan, Michael. 2019. “Still an Alternative? German Savings Banks in the Era of Financialization.” Unpublished manuscript.
   Google Scholar
• Sigl-Glöckner, Philippa. 2018. “Euro Area Financial System Explorer.” Accessed March 8, 2019. http://philippasigl.com/WhomToWhom/templates/.
   Google Scholar
• Stockhammer, Engelbert. 2016. “Neoliberal Growth Models, Monetary Union and the Euro Crisis. A Post-Keynesian Perspective.” New Political Economy 21 (4): 365–379. doi:10.1080/13563467.2016.1115826.
   Web of Science ®Google Scholar
• Stockhammer, Engelbert, Cédric Durand, and Ludwig List. 2016. “European Growth Models and Working Class Restructuring: An International Post-Keynesian Political Economy Perspective.” Environment and Planning A: Economy and Space 48 (9): 1804–1828.
   Web of Science ®Google Scholar
• Storm, Servaas, and C. W. M. Naastepad. 2015. “Crisis and Recovery in the German Economy: The Real Lessons.” Structural Change and Economic Dynamics 32: 11–24.
   Web of Science ®Google Scholar
• Streeck, Wolfgang. 2009. Re-forming Capitalism: Institutional Change in the German Political Economy. Oxford: Oxford University Press.
   Google Scholar
• Vitols, Sigurt. 2001. “The Origins of Bank-Based and Market-Based Financial Systems: Germany, Japan, and the United States.” In The Origins of Nonliberal Capitalism: Germany and Japan in Comparison, edited by Wolfgang Streeck, and Kōzō Yamamura, 171–199. Ithaca, NY: Cornell University Press.
   Google Scholar
• Zysman, John. 1983. Governments, Markets, and Growth: Financial Systems and the Politics of Industrial Change. Ithaca: Cornell University Press.
   Google Scholar