The Political Economy of Global Finance: A Network Model

2013 ◽  
Vol 11 (1) ◽  
pp. 133-153 ◽  
Author(s):  
Thomas Oatley ◽  
W. Kindred Winecoff ◽  
Andrew Pennock ◽  
Sarah Bauerle Danzman
Keyword(s):  
Political Economy ◽  
International Political Economy ◽  
The Political ◽  
Financial Contagion ◽  
Subprime Crisis ◽  
Network Approach ◽  
Global Finance ◽  
Financial Network ◽  
Key Characteristics ◽  
Global Financial System

Although the subprime crisis regenerated interest in and stimulated debate about how to study the politics of global finance, it has not sparked the development of new approaches to International Political Economy (IPE), which remains firmly rooted in actor-centered models. We develop an alternative network-based approach that shifts the analytical focus to the relations between actors. We first depict the contemporary global financial system as a network, with a particular focus on its hierarchical structure. We then explore key characteristics of this global financial network, including how the hierarchic network structure shapes the dynamics of financial contagion and the source and persistence of power. Throughout, we strive to relate existing research to our network approach in order to highlight exactly where this approach accommodates, where it extends, and where it challenges existing knowledge generated by actor-centered models. We conclude by suggesting that a network approach enables us to construct a systemic IPE that is theoretically and empirically pluralist.

Finance

2010 ◽  
Author(s):  
Tony Porter
Keyword(s):  
Political Economy ◽  
Structural Adjustment ◽  
International Political Economy ◽  
Bank Lending ◽  
Theory And Practice ◽  
International Affairs ◽  
Global Finance ◽  
Global Organization ◽  
Countries In Transition ◽  
Global Financial System

The literature on the global organization of finance has grown along with the global financial system, but also in response to theoretical innovations that suggested new lines of inquiry. In the 1970s and early 1980s, the emerging field of international political economy began to make valuable contributions to our understanding of global finance, but these focused on monetary politics or the formal intergovernmental organizations such as the IMF. By the 1990s, the literature focused on the greater complexity evident in global finance as traditional bank lending was increasingly displaced by other types of financial instruments, such as bonds, equities, and derivatives, which were also spreading geographically to influence “emerging markets” in the developing world and in countries in transition from communism. Since the mid-1990s, three interconnected changes in theory and practice are evident in international political economy (IPE) literature on the global organization of finance. First, the theoretical changes that characterized the broader fields of international relations and IPE were evident in the study of the global organization of finance as well, including the emergence of a new divide separating rational choice approaches from constructivism and other approaches. Second, the growing prominence of the concepts of globalization and global governance in the study and practice of international affairs inspired new literatures that overlapped and interacted with the IPE literature. Third, criticisms of globalized financial markets and questions of accountability and democracy directed at these markets grew and their role in structural adjustment.

The Political Economy of Global Finance Capital

2009 ◽  
Vol 61 (4) ◽  
pp. 731-763 ◽  
Author(s):  
Richard Deeg ◽  
Mary A. O'Sullivan
Keyword(s):  
Political Economy ◽  
Financial Crisis ◽  
Domestic Politics ◽  
Global Financial Crisis ◽  
Financial System ◽  
Future Research ◽  
The Political ◽  
Global Finance ◽  
Private Regulation ◽  
Global Financial System

The globalization of finance in recent years and the concurrent growth in the financial sector's influence, manifested most dramatically in the recent financial crisis, highlights the importance for political scientists of understanding the political economy of global finance. The authors review six important books that are representative of recent thinking by political scientists on the topic. They address the central questions that have been at the heart of the literature on global finance from its beginning in new and interesting ways. The most important developments highlighted in this article are the move from a predominant focus on state-centered patterns of regulation to the consideration of transnational governance regimes that mix public and private regulation; the effort to understand the causal forces that shape the political economy of global finance by allowing for an interaction among interests, institutions, and ideas; and giving increased attention to new sources of systemic risk in the global financial system, as well to the consequences for domestic politics of interactions with the global financial system. Notwithstanding the progress that has been made in coming to grips with the political economy of global finance, the authors highlight a number of questions that need to be addressed in future research. Although various nonstate actors have been recognized as important in the constitution of the rules of global finance, it is also necessary to understand the behavior of the actors who enact these rules. It is also important to generate evidence that forges some agreement on the causes of the globalization of finance, especially as the arguments made become more complex. Finally, there is a need for a more realistic assessment of the costs and benefits of financialization at the global and national levels. This last challenge is essential for a thorough understanding of the current global financial crisis.

Duterte’s Foreign Policy Pivot and Its Impact on Philippine Trade and Investments: An International Political Economy Perspective

2020 ◽  
Vol 41 (1-2) ◽  
pp. 127-160
Author(s):  
Jenny D. Balboa
Keyword(s):  
Political Economy ◽  
Foreign Policy ◽  
International Political Economy ◽  
The United States ◽  
The Philippines ◽  
The Political ◽  
The European Union ◽  
Economic Relations ◽  
The Impact ◽  
Trade And Investment

Abstract Since the Philippines elected President Rodrigo Duterte in 2016, the country’s foreign policy seems to have become more uncertain. President Duterte’s mercurial personality and antagonistic tirades against the country’s traditional Western allies, including the United States (US) and the European Union (EU), and his statements of building closer ties with China and Russia, had changed the political and diplomatic tone of the Philippines overall. Certainly, the political relationship between the Philippines and the West has been changed by Duterte’s strong remarks against the US and EU. Has this change spilled over to the economy? The paper presents an international political economy framework in examining the impact of Duterte’s foreign policy pivot to the country’s foreign economic relations, focusing on trade and investment. The paper argues that Duterte’s foreign policy shift is mainly shaped by Duterte’s “politics of survival”. Not firmly anchored in any idea, norms, or interest that can clearly benefit the country, Duterte is unable to provide coherent guidance and leadership on the foreign policy pivot, particularly on the economy. Duterte’s lack of guidance provided the technocrats with the policy space to continue the policies from the previous administration and not to divert radically from previous economic policies. The stability of the economic institutions provided a refuge in the period of uncertainty. As a result, the foreign economic relations of the Philippines has not radically shifted. The trade and investment situation of the Philippines remained stable, and economic relations with traditional partners are maintained.

States and the future of global finance

1992 ◽  
Vol 18 (1) ◽  
pp. 31-49 ◽  
Author(s):  
Eric Helleiner
Keyword(s):  
Political Economy ◽  
International Trade ◽  
International Relations ◽  
International Finance ◽  
International Economics ◽  
Global Economy ◽  
International Political Economy ◽  
Financial Sector ◽  
Global Finance ◽  
The Future

One of the central objectives of the field of international political economy (IPE) in the last 20 years has been to introduce insights from the field of international relations into the study of global economic affairs. Although this effort has been largely successful in the study of international trade, much less attention has been focused on the financial sector of the global economy. Seemingly highly technical and arcane, the study of international finance has been left largely to specialists in international economics, financial journalists, and international financial practitioners.

scholarly journals Incorporating Indigenous Nations into International Political Economy

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Rachel L. Wellhausen
Keyword(s):  
Political Economy ◽  
International Relations ◽  
Indigenous Peoples ◽  
Legal Status ◽  
International Political Economy ◽  
Theory Development ◽  
The Political ◽  
International Context ◽  
Indigenous Nations ◽  
Indian Nations

This comment elaborates on and extends the roundtable’s discussion by turning to the context of Indigenous peoples. Even setting aside normative motivations, expanded study of Indigenous peoples provides clear opportunities for theory development in international political economy and international relations more broadly. For example, the legal status of American Indian Nations’ 326 unique political jurisdictions can inform the political economy of marginalized identity groups in a non-Westphalian but nonetheless international context.

The Political Economy of African International Relations

1975 ◽  
Vol 5 (4) ◽  
pp. 29-38
Author(s):  
Timothy M. Shaw
Keyword(s):  
Political Economy ◽  
Foreign Policy ◽  
International Relations ◽  
Critical Review ◽  
International Politics ◽  
International Political Economy ◽  
The Political ◽  
New States ◽  
And Behavior ◽  
The Impact

Our understanding of the international political economy of Africa is underdeveloped; we have inadequate data and theories about the development of underdevelopment on the continent. Even the orthodox study of international politics and foreign policy in Africa is largely a recent phenomenon, stimulated by the rise of new states in the last twenty years. This essay, then, can be no more than a review of the field and a lament over its deficiencies. In particular, we are concerned about: i) the relative inattention afforded the impact of international politics on the rate and direction of social change in African states; ii) the need for a new conceptual framework to advance our understanding of the linkage politics between African elites and external interests; and iii) the related growth and international inequalities on the continent. This essay proceeds therefore from a critical review of analyses of the international political economy of Africa to a tentative presentation of a new typology of states and regimes, regions and behavior, in Africa which reflects the importance of those variables on which students of political economy focus.

Sign in / Sign up

Export Citation Format

Share Document