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Putting Economics Back Into Geoeconomics

Author

Listed:
  • 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, 2025. "Putting Economics Back Into Geoeconomics," NBER Working Papers 33681, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33681
    Note: AP CF EFG IFM ITI POL
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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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