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Putting Economics Back into Geoeconomics

Author

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  • Christopher Clayton
  • Matteo Maggiori
  • Jesse Schreger

Abstract

Geoeconomics is the use of a country’s economic strength to exert influence on foreign entities to achieve geopolitical or economic goals. We discuss how concepts of power in the political science and economics literature can be used to guide research on geoeconomics. Economic threats as a form of coercion have seen a recent resurgence. We show how different types of threats can be modeled using simple tools and discuss what channels their potential effectiveness is based on. We discuss important open questions for the future literature to pursue.

Suggested Citation

  • Christopher Clayton & Matteo Maggiori & Jesse Schreger, 2026. "Putting Economics Back into Geoeconomics," NBER Macroeconomics Annual, University of Chicago Press, vol. 40(1), pages 23-87.
    • Handle: RePEc:ucp:macann:doi:10.1086/738941
    DOI: 10.1086/738941
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