Globalization as 'Galton's problem': The missing link in the analysis of diffusion patterns in welfare state development

Most macro cross-national studies in political science that analyze the impact of globalization on domestic policies do not sufficiently consider the methodological consequences of diffusion processes, or "Galton's problem," as it is often referred to. I argue that globalization is a form of diffusion. Therefore it requires a shift from an exclusively functional analysis, which dominates in almost all established comparative studies in the field, to a diffusional analysis. I assume that globalization leads to a shift in focus on the part of political actors from domestic to international issues. I test this hypothesis by examining social expenditure rates of sixteen highly developed welfare states. The results indicate that globalization has become a highly influential factor since the late 1980s in contrast to the years before. In addition to the actual results presented here, the methodological approach of analyzing globalization as diffusion is relevant to other areas of comparative and international politics and may be a tool in future research.