This is an archived course. A more recent version may be available at ocw.mit.edu.

Readings

Required Texts

All readings in this course are from the following three texts.

Frieden, Jeffry A., and David A. Lake, eds. International Political Economy: Perspectives on Global Power and Wealth. 4th ed. Belmont, CA: Wadsworth, 1999. ISBN: 9780312189693.

Oatley, Thomas. International Political Economy: Interests and Institutions in the Global Economy. 2nd ed. New York, NY: Pearson Longman, 2005. ISBN: 9780321355669.

Stiglitz, Joseph E. Globalization and Its Discontents. New York, NY: W.W. Norton, 2003. ISBN: 9780393324396.

Readings by Session

SES # TOPICS READINGS
Analytical perspectives
1-2 Introduction: Markets and politics

Oatley, chapter 1, pp. 1-16.

Frieden and Lake

Introduction, pp. 1-16.

North, Douglass. "Institutions and Economic Growth: A Historical Introduction." pp. 47-59.

Strange, Susan. "States, Firms, and Diplomacy." pp. 60-68.
International trade
3-4 Overview of the multilateral trade system

Oatley, chapters 2 and 3, pp. 17-67.

Frieden and Lake

Krasner, Stephen. "State Power and the Structure of International Trade." pp. 19-36.

Kindleberger, Charles. "The Rise of Free Trade in Western Europe." pp. 73-89.

Lake, David A. "British and American Hegemony Compared: Lessons for the Current Era of Decline." pp. 127-140.
5-6 Trade policy: Analytical perspectives

Oatley, chapters 4 and 5, pp. 68-110.

Frieden and Lake

Gourevitch, Peter. "International Trade, Domestic Coalitions, and Liberty: Comparative Responses to the Crisis of 1873-1896." pp. 90-108.

Eichengreen, Barry. "The Political Economy of the Smoot-Hawley Tariff." pp. 37-46.

Coughlin, Cletus C., K. Alec Chrystal, and Geoffrey E. Wood. "Protectionist Trade Policies: A Survey of Theory, Evidence, and Rationale." pp. 303-317.
7-8 Trade policy: Empirical studies

Frieden and Lake

Rogowski, Ron. "Commerce and Coalitions: How Trade Affects Domestic Political Alignments." pp. 318-326.

Alt, James E., and Michael Gilligan. "The Political Economy of Trading States: Factor Specificity, Collective Action Problems, and Domestic Political Institutions." pp. 327-342.

Freeman, Richard B. "Are Your Wages Set in Beijing?" pp. 343-352.

Mansfield, Edward D., and Marc L. Busch. "The Political Economy of Nontariff Barriers: A Cross-national Analysis." pp. 353-365.

Cox, Ronald W. "Explaining Business Support for Regional Trade Agreements." pp. 366-376.

Re-read pp. 19-46.
9 Review for exam

(no readings)
10 Trade and development

Oatley, chapters 6 and 7, pp. 111-163.
11 In-class examination

(no readings)
Money and finance
12-13 Foreign direct investment and the multinational corporation

Oatley, chapters 8 and 9, pp. 164-213.

Frieden and Lake

Section overview, pp. 141-144.

Caves, Richard. "The Multinational Enterprise as an Economic Organization." pp. 145-155.

Tarzi, Shah. "Third World Governments and Multinational Corporations: Dynamics of Host Bargaining Power." pp. 156-166.

Fieldhouse, David. "'A New Imperial System'? The Role of the Multinational Corporations Reconsidered." pp. 167-179.
14 The international monetary system

Oatley, chapters 10 and 11, pp. 214-258.

Frieden and Lake

Section overview, pp. 193-197.

Broz, Lawrence. "The Domestic Politics of International Monetary Order: The Gold Standard." pp. 199-219.
15-16 Exchange rate politics

Oatley, Chapters 12 and 13, pp. 259-306.

Frieden and Lake

Eichengreen, Barry. "Hegemonic Stability Theories of the International Monetary System." pp. 220-244.

Cohen, Benjamin J. "The Triad and the Unholy Trinity: Problems of International Monetary Cooperation." pp. 245-256.

Goodman, John, and Louis Pauly. "The Obsolescence of Capital Controls? Economic Management in an Age of Global Markets." pp. 280-298.

Pollard, Patricia. "The Creation of the Euro and the Role of the Dollar in International Markets." Federal Reserve Bank of St. Louis, Review 83 (September/October 2001): 17-36.
17-18 International financial institutions

Stiglitz, Globalization and Its Discontents, chapters 1, 2, and 3, pp. 3-88.
19-20 International finance and development

Oatley, chapters 14 and 15, pp. 307-357.

Frieden and Lake

Haggard, Stephan. "Inflation and Stabilization." pp. 417-430.
21 Discussion

(no readings)
22-23 Economies in transition

Stiglitz, chapter 7, pp. 180-194.

Frieden and Lake

Section overview, pp. 377-381.

Stiglitz, Joseph E., and Lyn Squire. "International Development: Is it Possible?" pp. 383-391.

Broad, Robin, John Cavanagh, and Walden Bellow. "Development: The Market is Not Enough." pp. 392-404.
The globalization debate
24-25

Positive and negative externalities of globalization

Oatley, chapter 16, pp. 358-383.

Stiglitz, chapter 9, pp. 214-252.

Frieden and Lake

Williamson, Jeffry A. "Globalization and Inequality, Past and Present." pp. 405-416.

Section overview, pp. 431-432.

Butler, Alison. "Environmental Protection and Free Trade: Are They Mutually Exclusive?" pp. 433-445.

Cerny, Philip G. "Globalization and the Changing Logic of Collective Action." pp. 446-460.

Rodrik, Dani. "Sense and Nonsense in the Globalization Debate." pp. 461-470.
26

The illicit global economy

Conclusion

Wechsler, William F. "Follow the Money." Foreign Affairs 80, no. 4 (July/August, 2001).