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Geoeconomics

Author

Listed:
  • Cathrin Mohr

    (Department of Economics, University of Bonn, Bonn, Germany)

  • Christoph Trebesch

    (Kiel Institute for the World Economy, Kiel, Germany)

Abstract

We review the literature on geoeconomics, defined as the field of study that links economics and geopolitics (in particular, in terms of power rivalry). We describe what geoeconomics is and which questions it addresses, focusing on five main subfields: (a) the use of geoeconomic policy tools such as sanctions and embargoes; (b) the geopolitics of international trade, especially work on coercion and fragmentation; (c) the geopolitics of international finance, which focuses on currency dominance and state-directed capital flows; (d) the literature on geopolitical risk and its spillovers to the domestic economy, for example, on investments, credit, and inflation; and (e) the economics of war, in particular research on trade and war and on military production. As geopolitical tensions grow, we expect the field to grow substantially in the coming years.

Suggested Citation

  • Cathrin Mohr & Christoph Trebesch, 2025. "Geoeconomics," Annual Review of Economics, Annual Reviews, vol. 17(1), pages 563-587, August.
    • Handle: RePEc:anr:reveco:v:17:y:2025:p:563-587
    DOI: 10.1146/annurev-economics-092424-111952
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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