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The Political Economy of Geoeconomic Power

Author

Listed:
  • Clayton, Christopher
  • Maggiori, Matteo

    (Stanford University)

  • Schreger, Jesse

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

  • Clayton, Christopher & Maggiori, Matteo & Schreger, Jesse, 2025. "The Political Economy of Geoeconomic Power," SocArXiv j8p3m, Center for Open Science.
    • Handle: RePEc:osf:socarx:j8p3m
    DOI: 10.31219/osf.io/j8p3m
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    References listed on IDEAS

    as
    1. Matteo Maggiori & Chris Clayton & Jesse Schreger, 2024. "A theory of economic coercion and fragmentation," BIS Working Papers 1224, Bank for International Settlements.
    2. Christopher Clayton & Matteo Maggiori & Jesse Schreger, 2026. "A Framework for Geoeconomics," Econometrica, Econometric Society, vol. 94(1), pages 105-136, January.
    3. Frieden, Jeffry A., 1994. "International investment and colonial control: a new interpretation," International Organization, Cambridge University Press, vol. 48(4), pages 559-593, October.
    4. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Clayton, Christopher & Coppola, Antonio & Maggiori, Matteo & Schreger, Jesse, 2025. "Chokepoints: Identifying Economic Pressure," SocArXiv zsc4x_v1, Center for Open Science.
    2. Ben G. Li & Penglong Zhang, 2026. "A Linear Model of Geopolitics," Papers 2603.11292, arXiv.org.
    3. Wang, Rongyu & Worrall, Tim, 2025. "The (In)stability of the international monetary system without direct default costs," Finance Research Letters, Elsevier, vol. 86(PB).
    4. 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.

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    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

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