GPE Week 1a - GPE methods and trends

19 flashcards · Other · by Daniel F.

1. Economic flows

   trade, capital, labor (migration), technology, ideas, natural resources, environmental pollution

2. International Political Economy

   Study of interaction of economic and political phenomena across state borders Environmental concerns / climate change Gender and other issues of inequality Globalization and migration International finance, trade and development Other current, real-world phenomena interdisciplinary social science field of study that investigates, analyzes, and proposes changes in the processes of economic flows and political governance that cross over and/or transcend national boundaries IPE deals with competin…

3. IPE in summary

   An inter-disciplinary academic field, drawing upon economics, political science, political economy, international relations, sociology, law, history, cultural studies etc Studying the interplay between national and international issues Using competing theoretical perspectives (liberalism, nationalism, Marxism) to offer different explanations for the same phenomenon (different perspective!)

4. IPE vs GPE

   GPE The economic and political environment since the mid-1970s Describes how various actors (i.e. citizens, states or corporations) struggle to order their environment in an increasingly globalizing worlds IPE History of the economic and political activity across states up until the mid-1970s The academic field of study related to the interactions of economic and political phenomena across state borders

5. IPE's realted fields

   Economics: choice under scarcity, comparative advantage, supply and demand, the operation of markets Politics: states and the use of power, the machinery of government International relations: causes of war, foreign policy of states, international organizations

6. Neo-classical economics

   problem: The efficient allocation of scarce resources to satisfy unlimited human desires Solution: efficient operation of free markets, which allow for mutually advantageous exchanges, between rational, informed, free, equal and utility-maximizing individuals sum of individual choices will result in the most efficient allocation of resources Governments are inefficient: they should only provide some public goods (i.e. defense) and institutions Politics and politicians block the efficient operat…

7. Keynesian economics vs Institutional economics

   Keynesian Government is crucial and needs to provide greater scope of goods Government spending can stimulate economics Institutional markets as the outcome of institutions (e.g. legal structure, financial system) Highlights formal (laws) and informal institutions (e.g. social norms, habits)

8. Political science vs international relations

   Political science Use of power and politics Enforcement of interests Operation of state Welfare of communities Decision making based on ideology, institutions, and threats International relations Understand the causes of war and the interactions between the states Realism: Lack of any overreaching power (anarchy). States continuously compete for power Liberalism: Possibilities for cooperation among states (regional integration, free trade, democracy promotes peace)

9. Case studies (small n)

   A detailed investigation of a particular event or issue Reveal the motivating factors Apply insights to similar situations Starting point for theory building Disadvantage: Less generalizable to other contexts! Forms. descriptive, ’least likely’, ’most likely’ or comparative

10. Large n studies - statistical analyses

    Statistical exarnination of large datasets Find common characteristics or causes Example: How to investigate the relationship between free trade and economic development?

11. Rational choice

    Explains outcomes as the result of actors’ choices (individuals, groups or states) Assumptions Actors are utility-maximizers (minimize losses, maximize gains) Actors calculate the costs and benefits before choosing an action Rational choice highlights the problem of collective action Under-provision of public goods (clean water / air) Overuse of common pool resources (oceans)

12. Game theory

    the decision-making of actors who are influenced by what the other party is doing

13. prisoner’s dilemma

    Problem non-cooperation leads to poor outcomes All countries are better off with free trade Keeping trade barriers in a free trade system gives a lot of benefits Country doesn't want top open up because if others don't it will lose a lot Solution Repeated interaction Players can learn about the costs and benefits of cooperation Institutions like the World Trade Organization (WTO) incentivize countries to negotiate / cooperate

14. Institutionalism

    Emphasizes the importance of rules and institutions (formal and informal) in shaping political outcomes (e.g. WTO promotes free trade) Advances the discussion with respect to the varieties of capitalism Country variation might be explained by different forms of political and socio-economic arrangements (institutions)

15. Constructivism

    Norms and values go beyond shaping the states’ interests; instead, they are identities and therefore interests themselves What are actors’ beliefs & preferences, how have they been created and how might they change How do ideas, norms, identities and social understanding shape human behaviour Examples How is it that at one point in time, inflation is the key economic issue, and at others, it is unemployment Why does the US consider Cuba “communist” but China “economically advantageous"

16. Three main trends in contemporary GPE theory

    Consolidation seeks consensus on core concepts Integration combines GPE with other approaches Expansion aims for broader global perspective & issues

17. Consolidation trend

    Establishes consensus on subject matter (What GPE is), theoretical approaches, problems Subject matter = politics of international economics Key theory challenge = specify domestic (regional) vs international level relationship Drawback = narrow vision, ignores big picture issues like transforming the world, good life, etc

18. Integration Trend

    Combines GPE with other political economy variants (comparative, classical, etc.) Regionalism's complexity shows need for comparative analysis of regional/domestic structures Classical political economy can improve understanding of shared topics GPE has failed to explain well (national wealth, inequality, etc.)

19. Expansion Trend

    Make GPE truly "global" by including developing countries Reflect on theoretical implications of expanding geographical scope Develop new issues/areas of inquiry relevant to global context Move beyond developed economy focus