Theories of

International

Political Economy

An Introduction

Stephane Paquin

OXFORD UNIVERSITY PRESS Contents

Acknowledgements vi Introduction v/7

1 Thelnventionof IPE 1 Historical Foundation ofthe Field 2 Whatls IPE? 5 Economists and IPE 8 Theoretical Perspectives in IPE 12 The Dividing Lines between the Orthodox and Heterodox Schools 17 Conclusion 22

2 Theorizing International Political Economy 26 EpistemologyinIPE 27 What Is Positivism in Orthodox IPE? 29 TypesofTheory 32 Theorizing According to the Orthodox Approach 36 Theorizing According to the Heterodox Approach 39 Theorizing among the Neo-Gramscians 40 Theorizing According to Susan Strange 43 Conclusion 47

3 The Realist Perspective in IPE 50 Basic Assumptions ofthe Realist Perspective in IPE 51 The Myth of Globalization 57 Globalization, War, and Peace 61 Power and Hegemonie Stability Theory 64 Powerand Interstate Relations 70 Conclusion 73

4 The Liberal Perspective 77 Basic Assumptions ofthe Liberal Perspective in IPE 78 Globalization, War, and Peace 84 Peace through Democracy 85 Peace through International Institutions 86 Economic Interdependence as a Factor of Peace 87 Globalization and Transnationalism 90 Liberal Institutionalism 93 The Rational Design of Institutions 101 The Debate on Compliance 103 Conclusion 105 iv Contents

5 Domestic and Open Economy Politics 108 Interests 111 Institutions 114 TheSecond Image Reversed 121 Ideas 127 Conclusion 131

6 From Marxismto Neo-Gramscianism 134 Marxist Approaches in IPE 135 Dependency Theory 138 The World-System Approach 140 The Neo-Gramscian School 141 Robert Cox 143 The Rediscovery of Gramsci 145 The Structural Power of Capital 151 The Politics of Mass Production 155 Conclusion 156

7 The British School 159 The Heterodox British School in IPE 160 Globalization 165 Structural Power 168 Markets 173 Finance 176 Conclusion 179

8 Green and Feminist IPE 182 Green IPE 183 The Orthodox Approach in Green IPE 183 Critical Green IPE 187 Feminist IPE 191 Feminist Ontology in IPE 191 Feminist Epistemology in IPE 196 Conclusion 197

Conclusion 200 Bibliography 206 Index 223