This text considers why institutional forms of modern capitalist economies differ internationally and proposes a typology of capitalism based on the theory of institutional complementarity. Different economic models are not simply characterized by different institutional forms, but also by particular patterns of interaction between complementary institutions, which are the core characteristics of these models. Institutions are not just simply devices that would be chosen by "social engineers" in order to perform a function as efficiently as possible; they are the outcome of a political economy process. Therefore, institutional change should be envisaged not as a move towards a hypothetical "one best way", but as a result of socio-political compromises. Based on a theory of institutions and comparative capitalism, this book proposes an analysis of the diversity of modern economies - from America to Korea - and identifies five different models: the market-based Anglo-Saxon model; Asian capitalism; the Continental European model; the social democratic economies; and the Mediterranean model.
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