INTERNATIONAL POLITICAL ECONOMY

(Course Code: T407217)

Thomas Sattler
Département de Science Politique
Université de Genève

Spring 2020
Tuesday, 12-14h, Room M4276
Tuesday, 14-16h, Room M4276

COURSE DESCRIPTION

This course introduces students to the study of International Political Economy, and addresses the
major historical and contemporary developments in international economic politics. Theoretically,
it discusses the main concepts in international political economy drawing on interest- and ideas-
based approaches and emphasizing the overlap between international and comparative processes.
Thematically, the course begins with a brief introduction to the political and economic history of
the international political economy since the early 20th century through the economic depression of
the 1930s and up to the emergence of globalisation. The second part discusses the origins and
effects of the globalisation of trade relations during the past decades. The third part examines the
politics of international monetary relations. The course concludes with a debate of the implications
of these international economic processes for democratic politics and the future of the nation state.

By the end of the course, students should

- be familiar with the major theories of International Political Economy;
- have learned how to critically evaluate the theories and the literature in this subfield;
- have acquired transferable skills such as critical assessment, and oral and written presentation;
- know how to apply the theories to real world events and situations;
- derive policy implications from the theories for problems in international political economy.

COURSE OUTLINE

I. Background

1. The international economic system (18 February)

2. Historical debates (25 February)
Case: The rise of China

II. Political economy of international trade

3. International trade cooperation (10 March)

Case: The Cotton Dispute
4. Domestic trade politics (17 March)
Case: Donald Trump
5. Preferential trade agreements (24 March)
Case: CETA, TTIP, TPP
6. Trade and development (31 March)
Case: Mexico and NAFTA

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III. Political economy of international money and finance

7. International monetary regimes (7 April)

Case: Closing the Gold Window
8. Monetary and exchange rate politics (28 April)
Case: The Swiss Franc
9. European monetary integration (5 May)
Case: The GIPS
10. International financial crises (12 May)
Case: The 2008/09 crisis

IV. Conclusion

11. Globalisation and the state (19 May)

Case: Brexit

TIME AND LOCATION

Tuesday, 12-14h and 14-16h, M4276

Compléments d’études: 10.3. / 31.3. / 7.4. / 21.4. / 28.4.

GENERAL STRUCTURE

The course is divided into a main seminar, which takes place every week, and the ‘compléments
d’études’, which take place five times during the semester (for the dates and locations, see above).
The aim of the main seminar is to discuss the main theories of international political economy and
to evaluate them in light of important contemporary political events. In each session, I will give a
brief overview of the topic and research in the particular area. We will then discuss how the theories
help us to understand a real-world case that is presented by a student.

The aim of the compléments d’études is to provide guidance to develop your own research paper
that you have to submit at the end of semester. In the first session of the compléments, we will
discuss strategies to develop and structure the paper. In the remaining compléments, students will
present their research idea to get feedback from the other course participants. The presenters will
send a one-page summary of their research idea by Sunday before the idea is discussed in the
‘complément’. It is expected that all course participants will participate in the discussion of the
research idea!

ASSESSMENT

Assessment is based on a presentation during the semester (alone or joint with another student,
depending on student numbers), a final essay (written alone) and participation in class.

- The presentation addresses a real world problem from the theoretical angle discussed in the
respective week. The presenter(s) will collect and present the relevant background
information on the case (ca. 15-20 minutes). Together with the other course participants, the
presenter(s) then will examine a) which theories best explain the real world events and b)
what policy recommendations the theory has to offer for the actors involved in the problem.
Please see the presentation guidelines on Chamilo for detailed instructions. The presentation
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 counts 30% towards your final grade.
- Students will write a longer essay that must be submitted by the end of the teaching term (ca.
4000-5000 words). You can choose a topic / case that is listed in the course outline or any
other topic related to international political economy, but NOT the one that you chose for the
presentation. The deadline for the final essay is Sunday, 24 May 2020. This essay should be
submitted by email to me ([email protected]). The essay is worth 50% of the final
grade.
- The remaining 20% of the grade will be awarded for participation in class. It is expected that
all course participants read the required readings and actively contribute to the class
discussions!

MATERIALS

The presentation slides will be available on Chamilo after the course. Required research papers can
also be downloaded from the platform. Students are responsible to acquire the complementary
textbook themselves.

READING LIST

Background readings (optional)

- Thomas Oatley, 2017, International Political Economy (5th edition), Routledge

- John Ravenhill, 2014, Global Political Economy (4th edition), Oxford University Press
- Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics: Theory and
Practice (10th edition), Prentice Hall

Outline

I. Background

1. The history of the international economic system

Required
- Robert Keohane, 2009, “The old IPE and the new,” Review of International Political
Economy 16(1): 34-46

Recommended
- David Lake, 2009, “Open Economy Politics”, Review of International Organizations 4:
219-244
- Kevin O’Rourke and Jeffrey Williamson, 2002, “When did Globalisation Begin?” in:
European Review of Economic History 6: 23-50
- Michael Bordo, Berry Eichengreen and Douglas Irwin, 1999, “Is Globalization Today
Really Different than Globalization a Hundred Years Ago?” NBER Working Paper No.
7195
- Berry Eichengreen, 2008, Globalizing Capital, Princeton University Press
- Cheryl Schonhardt-Bailey, 2006, From the Corn Laws to Free Trade: Interests, Ideas
and Institutions in Historical Perspective, MIT Press

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 2. Historical approaches

Required
- Stephen D. Krasner, 1978, “State Power and the Structure of International Trade,”
World Politics 28(3): 317-347
- James Ashley Morrison, 2012, “Before Hegemony: Adam Smith, American
Independence, and the Origins of the First Era of Globalization,” International
Organization 66(3): 395-428

Recommended
- Jacob Viner, 1948, “Power Versus Plenty as Objectives of Foreign Policy in the
Seventeenth and Eighteenth Centuries,” World Politics 1(1), p.1-29
- Adam Smith, 1786, An Inquiry into the Nature and Causes of the Wealth of Nations
- Ronald Findlay and Kevin O’Rourke, 2007, Power and Plenty: Trade, War, and the
World Economy in the Second Millenium, Princeton University Press

II. International trade

3. International trade cooperation

Required
- Judith Goldstein, Douglas Rivers and Michael Tomz, 2007, “Institutions in
International Relations: Understanding the Effect of the GATT and WTO on World
Trade,” International Organization 61: 37-67
- Bechtel Michael and Thomas Sattler. 2015. “What is Litigation in the World Trade
Organization Worth?” International Organization 69(2): 375-403

Recommended
- Christina Davis and Sarah Blodgett Bermeo, 2009, “Who Files? Developing Country
Participation in GATT/WTO Adjudication,” Journal of Politics 71(3): 1033-1049
- Lisa Martin (ed.), 2015, The Oxford Handbook of the Political Economy of
International Trade, Oxford University Press
- Joanne Gowa, 1994, Allies Adversaries, and International Trade, Princeton University
Press
- John Ruggie, 1982, “International Regimes, Transactions, and Change: Embedded
Liberalism in the Postwar Economic Order,” International Organization 36(2): 379-415
- John Ikenberry, 1992, “A World Economy Restored: Expert Consensus and the Anglo-
American Postwar Settlement,” International Organization 46(1): 289-321

4. Domestic trade politics

Required
- Sungmin Rho and Michael Tomz, 2017, “Why don’t Trade Preferences Reflect
Economic Self-Interest?” International Organization 71: S85-S108
- J. Bradford Jensen, Dennis P. Quinn and Stephen Weymouth, 2017, “Winners and
Losers in International Trade: The Effects on US Presidential Voting,” International
Organization 71: 423-457

Recommended
- Ronald Rogowski, 1987, “Political Cleavages and Changing Exposure to Trade,”
American Political Science Review 81(4): 1121-1137

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 - Michael Hiscox, 1999, “The Magic Bullet? The RTAA, Institutional Reform and Trade
Liberalization,” International Organization 53(4): 669-698
- Helen Milner, 1988, Resisting Protectionism, Princeton University Press
- Ken Scheve and Matthew Slaugher, 2001, “What Determines Individual Trade-Policy
Preferences?” Journal of International Economics 54(2): 267-292
- Michael Hiscox, 2001, “Class versus Industry Cleavages: Inter-Industry Factor Mobility
and the Politics of Trade,” International Organization 55(4): 1-46

5. Preferential trade agreements

Required
- Edward Mansfield and Helen Milner, 1999, “The New Wave of Regionalism,”
International Organization 53(3): 589-627
- Leonardo Baccini and Johannes Urpelainen. 2014. “International Institutions and
Domestic Politics: Can Preferential Trading Agreements Help Leaders Promote
Economic Reform?” The Journal of Politics 76 (1): 195–214

Recommended
- Edward Mansfield and Helen Milner, 2012, Votes, Vetoes, and the Political Economy of
International Trade Agreements, Princeton University Press
- Mark Manger, 2009, Investing in Protection: The Politics of Preferential Trade
Agreements between North and South, Cambridge University Press
- Leonardo Baccini and Andreas Dür, “The New Regionalism and Policy
Interdependence,” British Journal of Political Science 42(1): 57 - 79
- Richard E. Baldwin. 2006. “Multilateralising Regionalism: Spaghetti Bowls as Building
Blocs on the Path of Global Free Trade.” The World Economy 29(11): 1451-1518.

6. Trade and development

Required
- Haggard, Stephan, 1990, Pathways from the Periphery: The Politics of Growth in the
Newly Industrializing Countries. Cornell University Press, chapter 2
- Keefer, Philip, 2004, “What does Political Economy Tell Us About Economic
Development - and Vice Versa?” Annual Review of Political Science 7: 247–72.

Recommended
- Evans, P. (1995): Embedded Autonomy: States and Industrial Transformation.
Princeton University Press
- Frieden, Jeffry, Michael Pastor and Michael Tomz, 2000, Modern Political Economy
and Latin America: Theory and Policy, Westview Press
- Wolf, M. (2004): Why Globalization Works. New Haven: Yale University Press
- Rodrik, D. (1999): ‘The New Global Economy and Developing Countries: Making
Openness Work’

III. International money

7. International monetary regimes

Required
- James Ashley Morrison, 2016, “Shocking Intellectual Austerity: The Role of Ideas and
the Demise of the Gold Standard in Britain,” International Organization 70(1): 175-207

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 - Joanne Gowa, 1984, “State Power, State Policy: Explaining the Decision to Close the
Gold Window,” Politics & Society 13(1): 91-117

Recommended
- Barry Eichengreen and Peter Tamin, 1997, “The Gold Standard and the Great
Depression,” NBER Working Paper 6060
- Jeffry Frieden, 1997, “The Dynamics of International Monetary Systems: International
and Domestic Factors in the Rise, Reign and Demise of the Classical Gold Standard,”
in: Berry Eichengreen and Marc Flandreau (eds.), The Gold Standard in Theory and
History, Routledge
- Helen Milner, 1997, Interests, Institutions, and Information: Domestic Politics and
International Relations, Princeton University Press, chapter 5
- Dennis Quinn, 2003, “Capital Account Liberalisation and Financial Globalization,
1890-1999: A Synoptic View,” International Journal of Finance and Economics 8(3):
189-204

8. Monetary and exchange rate politics

Required
- Jeffry Frieden, 1991, “Invested Interests: The Politics of National Economic Policies in
a World of Global Finance,” International Organization 45(4): 425-451
- Joseph Jupille and David Leblang. 2007. “Voting for Change: Calculation, Community
and the Euro Referendums.” International Organization 61: 763–782?

Recommended
- Lawrence Broz and Jeffry Frieden, 2006, “The Political Economy of Exchange Rates,”
in: Barry Weingast and Donald Wittman (eds.), Oxford Handbook of Political Economy,
Oxford University Press
- Christina Bodea, 2010, “The Political Economy of Fixed Exchange Rates: The
Experience of Post-Communist Countries,” European Journal of Political Economy
26(2): 248-246
- Beth Simmons, 1994, Who Adjusts? Domestic Sources of Foreign Economic Policy
During the Interwar Years, Princeton University Press
- William Bernhard, Lawrence Broz and William Clark, 2002, “The Political Economy of
Monetary Institutions,” International Organization 56(4): 693-724
- Cristina Bodea and Raymond Hicks, 2015, “Price Stability and Central Bank
Independence: Discipline, Credibility and Democratic Institutions,” International
Organization 69(1): 35-61

9. European monetary integration

Required
- Kathleen McNamara, 1999, “Consensus and Constraint: Ideas and Capital Mobility in
European Monetary Integration,” Journal of Common Market Studies 37(3): 455-476
- Alison Johnston, Bob Hancké and Suman Pant, 2014, Comparative Institutional
Advantage and the European Sovereign Debt Crisis,” Comparative Political Studies
47(3): 1771-1800

Recommended
- Michael Bechtel, Jens Hainmüller and Yotam Margalit, 2014, “Preferences Over
International Redistribution: The Divide Over Eurozone Bailouts.” American Journal of
Political Science 58(4): 835-856

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 - Jeffry Frieden, 2002, “Real Sources of European Currency Policy: Sectoral Interests and
European Monetary Integration,” International Organization 56(4): 831-860
- Barry Eichengreen and Jeffry Frieden (eds.), 1994, The Political Economy of European
Monetary Unification, Westview Press
- C. Randall Henning, 1998, “Systemic Conflict and Regional Monetary Integration: The
Case of Europe,” in: International Organization 52(3): 537-573
- Thomas Oatley, 1997, Monetary Politics: Exchange Rate Cooperation in the European
Union, University of Michigan Press

10. International financial crises

Required
- Andrew MacIntyre, 2001, “Institutions and Investors: The Politics of the Economic
Crisis in Southeast Asia,” International Organization 55(1): 81-122
- Raymond Fisman. 2001. “Estimating the Value of Political Connections.” American
Economic Review 91 (4): 1095-1102

Recommended
- David Leblang and Shanker Satyanath, 2006, “Institutions, Expectations, and Currency
Crises,” International Organization 60(1): 245-262
- Stephan Haggard, 2000, The Political Economy of the Asian Financial Crisis, Institute
for International Economics
- Carmen Reinhart and Kenneth Rogoff, 2011, “From Financial Crash to Debt Crisis,”
American Economic Review 101(5): 1676-1706
- Janice Boucher Breuer, 2004, “An Exegesis on Currency and Banking Crises,” Journal
of Economic Surveys 18(3): 293-320

IV. Conclusion

11. Globalisation and the state

Required
- Layna Mosley, 2000, “Room to Move: International Financial Markets and National
Welfare States,” International Organization 54(4): 737-773
- Timothy Hellwig and David Samuels, 2007, “Voting in Open Economies: The Electoral
Consequences of Globalization,” Comparative Political Studies 40(3): 283-306
- Dani Rodrik, Summary of “Globalization Paradox”, LSE Blog

Recommended
- Nita Rudra, 2002, “Globalization and the Decline of the Welfare State in Less-
Developed Countries,” in: International Organization 56(2): 411-445
- Geoffrey Garrett, 1998, Partisan Politics in the Global Economy, Cambridge University
Press
- Alicia Adsera and Carles Boix, 2002, “Trade, Democracy and the Size of the Public
Sector: The Political Underpinnings of Openness,” in: International Organization
56(2): 229-262
- Dani Rodrik, 2011, The Globalization Paradox: Democracy and the Future of the
World Economy, Norton