The welfare state and globalisation: down and out or too tough to die?

Politicians as well as researchers frequently claim that globalisation ¿ and in particular its economic dimension ¿ poses a threat to the welfare state. This article investigates whether such a claim is justified by the empirical studies investigating the relationship between economic openness and the welfare state. Based on the literature two contrasting hypotheses are distinguished: the first stating that economic openness does threaten the welfare state and the second arguing that this is not the case. The empirical studies are systematically reviewed in this article. The analysis shows that the second hypothesis supported most often and therefore it is concluded that economic openness does not threaten the welfare state.