Formal Models of International Political Economy

2021 ◽  
Author(s):  
Leslie Johns
Keyword(s):  
Political Economy ◽  
International Trade ◽  
Foreign Investment ◽  
International Political Economy ◽  
Future Research ◽  
Formal Models ◽  
Foreign Investors ◽  
Research Questions

This chapter examines how scholars use formal models to study International Political Economy (IPE). This small, but important, body of research revolves around three substantive research questions. First, scholars have asked: how do states promote international trade by reducing tariffs and non-tariff barriers? Second, they ask: how do states encourage foreign investment by making binding pledges to protect foreign investors? Finally, scholars have studied: how do states stabilize and grow their economies? For each of these topics, the chapter looks back at past findings from formal models. It then discusses how IPE scholars can profitably move forward in their future research on these important topics.

FOREIGN INVESTMENT AND THE POLITICAL ECONOMY OF INDONESIAN CAPITAL MARKET IN 2015-2016

2019 ◽  
Vol 7 (6) ◽  
pp. 340-348
Author(s):  
Faris Al-Fadhat ◽  
Mohammad Raihan Nadhir
Keyword(s):  
Political Economy ◽  
Interest Rates ◽  
Foreign Investment ◽  
Capital Market ◽  
International Political Economy ◽  
Stock Exchange ◽  
Economic Stability ◽  
Foreign Investors ◽  
The Impact ◽  
The Capital Market

Purpose of the study: This article examines the impact of foreign investment—especially through the capital market—towards the economic stability and strategic policy in Indonesia. Despite being a member of G20, a group of states with the world’s highest Gross Domestic Products, Indonesia is still a developing state whose need for investment to support economic growth is high. On the other side, Indonesia has a low capital accumulation rate due to low people’s savings which inhibits the development projects. Therefore, the government prioritizes the incoming flow of foreign investment. Methodology: This study applies the international political economy approach to provide critical analysis of Indonesian contemporary foreign investment, especially in the capital market. The data used is the investment activities through the Indonesia Stock Exchange during 2015-2016. Main Findings: It argues that Indonesia’s considerable dependence on investment has enabled foreign investors to play the capital flow to influence the national economic stability for their interests. Such influence was a result of two strategies: (i) the transaction domination in the capital market through the Indonesia Stock Exchange, and (ii) the alliance with financial actors in accessing inside information—which is not commonly owned by domestic investors. Implications/Applications: This study suggests that the politics of foreign investors has contributed towards the changes of government policies in the financial sectors to facilitate the process and to ensure the flow of foreign investment to Indonesia. Such policies include the government’s control of interest rates, fiscal policy, as well as currency stability through macroprudential regulation. Novelty/Originality: Essentially, the capital market is not politically neutral. It has been used by foreign investors to augment their interests by dominating transactions and building political alliances at the domestic level.

International Political Economy

2009 ◽  
Author(s):  
David A. Lake
Keyword(s):  
Political Economy ◽  
International Trade ◽  
Open Economy ◽  
International Political Economy ◽  
Future Research ◽  
Neoclassical Economics ◽  
Short Discussion ◽  
Trade Theory ◽  
International Trade Theory

This article provides an overview of international political economy (IPE) and an outline of the early origins of the field. It discusses one of the first comprehensive statements regarding the Open Economy Politics (OEP) approach, which adopts the assumptions of neoclassical economics and international trade theory. The article ends with a short discussion of possible areas for future research.

scholarly journals Firms in Trade and Trade Politics

2019 ◽  
Vol 22 (1) ◽  
pp. 399-417 ◽  
Author(s):  
In Song Kim ◽  
Iain Osgood
Keyword(s):  
Political Economy ◽  
Exchange Rates ◽  
Interest Group ◽  
Foreign Investment ◽  
International Political Economy ◽  
Political Organization ◽  
Trade Regime ◽  
Capital Movements ◽  
Trade Politics ◽  
Preference Map

We survey the literature on firms as primary actors in trade politics. In contrast with prevailing approaches, firm-centered models predict that trade internally divides industries and that larger firms are the strongest advocates for globalization. This new preference map alters extant predictions about the dynamics of interest group contestation over trade and suggests revised accounts for how political organization and institutions contribute to an open international order. We also explore the potential for new insights into the operation of the global trade regime, the politics of foreign investment, immigration and capital movements, and exchange rates. Poli-tical activities undertaken by firms are important areas for further research in international political economy: Their economic engagements directly affect the movement of goods, services, capital, and people across the globe.

The International Political Economy of Regionalism

2017 ◽  
Author(s):  
Tanja A. Börzel ◽  
Soo Yeon Kim
Keyword(s):  
Political Economy ◽  
International Political Economy ◽  
Developed Countries ◽  
Research Area ◽  
Future Research ◽  
Currency Unions ◽  
Rising Powers ◽  
Transatlantic Trade ◽  
Regulatory Standards ◽  
New Research

Economic regionalism has been dominated by preferential trade agreements (PTAs). Not only have their numbers surged since the end of the Cold War, we also see different varieties of PTAs emerging. First, long-standing PTAs have evolved into deeper forms of economic regionalism, such as custom unions, common markets, or currency unions. Second, PTAs increasingly involve “behind-the-border” trade liberalization, such as the coordination of domestic trade–related regulatory standards. Third, many of the PTAs that were established over the past 25 years no longer only involve countries of the “Global North” but are formed by developing and developed countries (“North-South” PTAs) and between developing countries (“South-South” PTAs). Finally, a most recent development in economic regionalism concerns the building of so called “mega-PTAs,” such as the Trans-Pacific Partnership (TTP) and the Transatlantic Trade and Investment Partnership (TTIP), combining several PTAs.In order to explain the formation, proliferation, and evolution of these varieties of PTA, existing international political economy (IPE) approaches have to give more credit to political factors, such as the locking-in of domestic reforms or the preservation of regional stability. Moreover, IPE scholarship should engage more systematically with diffusion research, particularly to account for the spate of deeper regionalism. Finally, “rising powers” and “emerging markets” constitute an exciting new research area for IPE. These new players differ with regard to the importance they attribute to regionalism and the ways in which they have sought to use and shape it. Identifying and explaining variations in the link between rising powers and regionalism is a key challenge for future research

Gramscian International Political Economy from a Feminist Perspective

2011 ◽  
Author(s):  
Pooja Rishi
Keyword(s):  
Political Economy ◽  
International Political Economy ◽  
Current Phase ◽  
Future Research ◽  
Women And Gender ◽  
Political Methodology ◽  
Feminist Literature ◽  
Relational Analysis ◽  
Feminist Perspectives ◽  
And Gender

Feminist Gramscian international political economy (IPE) is an interdisciplinary intellectual project that has focused both on theoretical and empirical analysis of women and gender within the field. Feminist Gramscian IPE emerged from the confluence of an eclectic body of work over the last several years encompassing fields as disparate as international relations, IPE, feminist economics, the literature on gender and development, and feminist literature on globalization. As with feminist perspectives in other disciplinary fields, Gramscian feminists have largely embraced postpositivist, interpretivist, and relational analysis while trying to maintain the emancipatory potential of their work for women the world over. Current Gramscian feminist analyses are firmly grounded and draw from early Marxist/Socialist feminist interventions. They have also engaged with the three major categories of analysis in Gramscian thought—ideas, material capabilities, and institutions—in order to understand hegemonic processes that function to (re)construct and (re)produce both gendered categories of analysis and practice. Feminist revisions of Gramscian IPE have focused on international institutions, rules and norms, while simultaneously shedding light on contemporary states and how they are being transformed in this current phase of globalization. Three central tasks that feminist Gramscian scholars may consider in future research are: to be more engaged with the notion of hegemony, to revisit the political methodology employed by many feminist Gramscian analyses, and to devote more attention to non-mainstream perspectives.

Dark Past, Grey Present or Bright Future? – Foreign Investors’ Access to China’s Telecommunications Industry and a Political Economy Analysis of Recent Industrial Policy Moves

2012 ◽  
pp. 513-541
Author(s):  
Wei Shen
Keyword(s):  
Political Economy ◽  
Foreign Investment ◽  
Telecommunications Industry ◽  
Economic Downturn ◽  
Foreign Investors ◽  
Investment Policies ◽  
Regulatory Instruments ◽  
Legislative Framework ◽  
Policy Direction ◽  
Transactional Models

Amid the global economic downturn, Eurozone crisis and Libya war in 2011, Alibaba, Yahoo and Softbank’s dispute over Alipay brought China’s telecoms industry and, more importantly, foreign investment policies into the global spotlight. This article considers Chinese legislative framework regulating foreign investment in China’s telecoms industry, and more importantly, two transactional models, that is, the CCF and VIE structures, foreign investors have adopted in the past three decades to access China’s restricted telecoms industry. This article attempts to unveil the underlying reasons foreign investors creating and utilizing these transactional models and, more importantly, China’s recent regulatory instruments Chinese authorities have taken in tackling the VIE structure in telecoms industry. From a political economy lens, this article offers a possible rationale underpinning such movements in light of China’s policy direction.

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.

The Comparative and International Political Economy of Anti-Globalization Populism

2019 ◽  
Author(s):  
Robert J. Franzese
Keyword(s):  
Political Economy ◽  
International Trade ◽  
International Political Economy ◽  
Western World ◽  
Economic Developments ◽  
Empirical Record

The basic economics of international trade imply that globalization will have driven in the developed democracies of the Western world an increasing divergence between the material advancement of human, physical, and financial capitalists—a minority of the population—and the material stagnation or even decline of labor—a majority. This article reviews that theory and the strong comparative-historical empirical record substantiating those effects, and explains how the rise of xenophobic, nationalistic, anti-elite populism has its complementary roots in these economic developments.

Introducing the Electronic Database of Investment Treaties (EDIT): The Genesis of a New Database and Its Use

2020 ◽  
pp. 1-22
Author(s):  
Wolfgang Alschner ◽  
Manfred Elsig ◽  
Rodrigo Polanco
Keyword(s):  
Political Economy ◽  
International Relations ◽  
International Law ◽  
International Political Economy ◽  
Electronic Database ◽  
Research Questions ◽  
Investment Treaties ◽  
Machine Readable ◽  
Systematic Database

Abstract This article introduces a novel database on investment treaties called the Electronic Database of Investment Treaties (EDIT). We describe the genesis of the database and what makes EDIT the most comprehensive and systematic database to date. What stands out besides the coverage is that treaties are all provided in one single language (English) and in one single format that is machine-readable. In the second part of the article, we provide selected illustrations on how the data can be used to address research questions in international law, international political economy, and international relations by applying text-as-data methods and by extracting and visualizing data based on EDIT.

scholarly journals Domestic Politics and Foreign Investment: British Development of Mexican Petroleum, 1889–1911

1987 ◽  
Vol 61 (3) ◽  
pp. 387-416 ◽  
Author(s):  
Jonathan C. Brown
Keyword(s):  
Political Economy ◽  
Competitive Advantage ◽  
Foreign Investment ◽  
Domestic Politics ◽  
Petroleum Industry ◽  
Economic Policies ◽  
Foreign Investors ◽  
Political Interests

Business historians and students of political economy quite often analyze the success of foreign investors in the periphery in terms of the entrepreneur's competitive advantage and of the host country's beneficial economic policies. One cannot explain the extraordinary success of British engineer Sir Weetman Pearson in Mexico's early oil history according to such criteria, however, for his American competitors had experience in the technologically advanced U.S. petroleum industry and should have prevailed. Sir Weetman succeeded because Mexican politicians, pursuing their own internal political interests, willed and nurtured his success.

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