IDEAS home Printed from https://ideas.repec.org/a/aea/apandp/v115y2025p588-92.html
   My bibliography  Save this article

The Political Economy of Geoeconomic Power

Author

Listed:
  • Christopher Clayton
  • Matteo Maggiori
  • Jesse Schreger

Abstract

Great powers are increasingly using their economic and financial strength for geopolitical aims. This rise of "geoeconomics" has the potential to reshape the international trade and financial system. This paper examines the role of domestic political economy forces in determining a government's ability to project geoeconomic power abroad. We also discuss the role that persuading or coercing foreign governments plays in projecting geoeconomic power around the world.

Suggested Citation

  • Christopher Clayton & Matteo Maggiori & Jesse Schreger, 2025. "The Political Economy of Geoeconomic Power," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 588-592, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:588-92
    DOI: 10.1257/pandp.20251040
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20251040
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://www.aeaweb.org/articles/materials/23220
    Download Restriction: no
    File URL: https://libkey.io/10.1257/pandp.20251040?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christopher Clayton & Matteo Maggiori & Jesse Schreger, 2023. "A Framework for Geoeconomics," NBER Working Papers 31852, National Bureau of Economic Research, Inc.
    2. Clayton, Christopher & Maggiori, Matteo & Schreger, Jesse, 2024. "A Theory of Economic Coercion and Fragmentation," SocArXiv j8wgx, Center for Open Science.
    3. Gerard Padró I Miquel & Pierre Yared, 2012. "The Political Economy of Indirect Control," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(2), pages 947-1015.
    4. Frieden, Jeffry A., 1994. "International investment and colonial control: a new interpretation," International Organization, Cambridge University Press, vol. 48(4), pages 559-593, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christopher Clayton & Matteo Maggiori & Jesse Schreger, 2025. "Putting Economics Back into Geoeconomics," NBER Chapters, in: NBER Macroeconomics Annual 2025, volume 40, National Bureau of Economic Research, Inc.
    2. Clayton, Christopher & Coppola, Antonio & Maggiori, Matteo & Schreger, Jesse, 2025. "Chokepoints: Identifying Economic Pressure," SocArXiv zsc4x_v1, Center for Open Science.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:osf:socarx:j8p3m_v1 is not listed on IDEAS
    2. Christopher Clayton & Matteo Maggiori & Jesse Schreger, 2025. "Putting Economics Back into Geoeconomics," NBER Chapters, in: NBER Macroeconomics Annual 2025, volume 40, National Bureau of Economic Research, Inc.
    3. Gopinath, Gita & Gourinchas, Pierre-Olivier & Presbitero, Andrea F. & Topalova, Petia, 2025. "Changing global linkages: A new Cold War?," Journal of International Economics, Elsevier, vol. 153(C).
    4. Clayton, Christopher & Maggiori, Matteo & Schreger, Jesse, 2024. "A Theory of Economic Coercion and Fragmentation," SocArXiv j8wgx, Center for Open Science.
    5. Cong, Lin William & Mayer, Simon, 2025. "Strategic digitization in currency and payment competition," Journal of Financial Economics, Elsevier, vol. 168(C).
    6. Fiona Paine & Richard R. Townsend & Ting Xu, 2025. "Should Governments Restrict Foreign Investments in Startups?," NBER Chapters, in: Entrepreneurship and Innovation Policy and the Economy, volume 5, National Bureau of Economic Research, Inc.
    7. Sonal Pandya & David Leblang, 2017. "Risky business: Institutions vs. social networks in FDI," Economics and Politics, Wiley Blackwell, vol. 29(2), pages 91-117, July.
    8. Thiemo Fetzer & Pedro C. L. Souza & Oliver Vanden Eynde & Austin L. Wright, 2021. "Security Transitions," American Economic Review, American Economic Association, vol. 111(7), pages 2275-2308, July.
    9. Jésus Fernández-Villaverde & Tomohide Mineyama & Dongho Song & Jesús Fernández-Villaverde, 2024. "Are We Fragmented Yet? Measuring Geopolitical Fragmentation and Its Causal Effects," CESifo Working Paper Series 11192, CESifo.
    10. Benjamin A. T. Graham & Noel P. Johnston & Allison F. Kingsley, 2018. "Even Constrained Governments Take," Journal of Conflict Resolution, Peace Science Society (International), vol. 62(8), pages 1784-1813, September.
    11. Dagaev, Dmitry & Lamberova, Natalia & Sobolev, Anton, 2019. "Stability of revolutionary governments in the face of mass protest," European Journal of Political Economy, Elsevier, vol. 60(C).
    12. Lipnowski, Elliot & Ramos, João, 2020. "Repeated delegation," Journal of Economic Theory, Elsevier, vol. 188(C).
    13. Aiyar, Shekhar & Ohnsorge, Franziska, 2024. "Geoeconomic Fragmentation and "Connector" Countries," MPRA Paper 121726, University Library of Munich, Germany.
    14. Georgy Egorov & Konstantin Sonin, 2014. "Incumbency Advantage in Non-Democracies," NBER Working Papers 20519, National Bureau of Economic Research, Inc.
    15. Joerg Mayer, 2024. "De-dollarization: the global payment infrastructure and wholesale central bank digital currencies," FMM Working Paper 102-2024, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    16. Richard Rosecrance, 2010. "Capitalist Influences and Peace," International Interactions, Taylor & Francis Journals, vol. 36(2), pages 192-198, May.
    17. Merima Ali & Odd-Helge Fjeldstad & Boqian Jiang & Abdulaziz B Shifa, 2019. "Colonial Legacy, State-building and the Salience of Ethnicity in Sub-Saharan Africa," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1048-1081.
    18. Glen Biglaiser & Hoon Lee & Joseph L Staats, 2017. "The effects of political and legal constraints on expropriation in natural resource and manufacturing sectors," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 20(4), pages 311-333, December.
    19. Mohr, Cathrin & Trebesch, Christoph, 2025. "Geoeconomics," Kiel Working Papers 2279, Kiel Institute for the World Economy (IfW Kiel).
    20. Jaeger, David A. & Klor, Esteban F. & Miaari, Sami H. & Paserman, M. Daniele, 2012. "The struggle for Palestinian hearts and minds: Violence and public opinion in the Second Intifada," Journal of Public Economics, Elsevier, vol. 96(3), pages 354-368.
    21. Katja B. Kleinberg & Benjamin O. Fordham, 2010. "Trade and Foreign Policy Attitudes," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(5), pages 687-714, October.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F10 - International Economics - - Trade - - - General
    • F30 - International Economics - - International Finance - - - General
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:apandp:v:115:y:2025:p:588-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.