Globalization and Domestic Politics: Policy Convergence or Divergence?A Comparative Study of the Tax Policies of Four States

　　Abstract: Will globalization result in a convergence in domestic policies across the world? What is the role of domestic politics in this process? Tax policy is one of the best cases for considering the interaction between domestic politics and the international environment. Specifically with respect to value added tax, which is a new form of tax that has been introduced as the process of globalization continues, not only does it not distort markets, it further can increase a state’s fiscal revenue. While so, why is it the case that there is no convergence in the way that states apply value added tax? Based on comparative research of China, India, the United States and Japan, this paper finds that globalization does generate pressure for a convergence in domestic tax policies, but as states vary in their dependence on the international market and have different levels of control over local government, significant differences in application of tax policies emerge across states.