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Code POLS 580
Term 201701
Title Political Economy
Faculty Faculty of Arts and Social Sciences
Subject Political Science(POLS)
SU Credit 3
ECTS Credit 10.00
Instructor(s) Is?k Ozel,
Detailed Syllabus
Language of Instruction English
Level of Course Doctoral
Type of Course Click here to view.
(only for SU students)
Mode of Delivery Interactive lecture,Seminar
Planned Learning Activities Interactive,Discussion based learning,Project based learning

This course is designed to equip the student with basic concepts and tools necessary to understand the literature and to conduct research in this field. The substantive question is why governments do what they do and with what consequences. Discussions focus on the recent contributions to the political economy of development; principal characteristics of the contemporary world economy, especially patterns of inequality and the varying explanations for their emergence.


This graduate seminar aims to introduce students to major theoretical discussions and empirical issues in the field of political economy (PE), drawing from both comparative political economy (CPE) and international political economy (IPE). It will discuss the complex interplay between political and economic dynamics surrounding the ongoing processes in the world economy such as globalization, regionalization and ?national? development based on dynamic interactions between actors, institutions and ideas at multiple levels. It will focus on a number of issue areas in respective scholarship including international trade, international capital flows and production networks (multinational corporations) and economic development in the context of ongoing (yet increasingly contested) regional and global integration.

Tackling the roots and consequences of cross-temporal and cross-country variations regarding empirical diversity in international economy, the seminar will briefly review the evolution of major national and international institutions which shape economic policy making landscapes and undertake a comparative assessment of their recent transformations. It will, then, deliberate on the ongoing tensions between global and regional integration; and the questioned sustainability of existing institutional set-ups in both economic and political spheres.

This seminar will use the theoretical and methodological tools of economics as well as political science to discuss the sources and implications of economic policy outcomes at the international level; and explore how domestic, international and supranational institutions, interest groups and ideas interact to shape policy outcomes and ongoing trends in the international economy. Yet, no prior expertise in/ exposure to economics or specific economic theories is needed.

Learning Outcome

On completion of the module, students should be able to
a) Comprehend the major issues, theories and perspectives in the field of political economy
b) Understand the differences and intersections between political economy, comparative political economy and international political economy
c) Analyze the interplay between interests, institutions and ideas in the context of political economy from a microfoundational perspective.
d) Apply methodological tools in the analysis of political economy-related outcomes e) Evaluate the policy outcomes in the context of extant literature and empirical developments.
f) Analyze the complementary and contradictory aspects of global and regional integration and national development.
g) Develop skills to conduct a critical reading of the extant literature on political economy
h) Conduct empirical research on major issue areas
i) Write a research paper based on original data
j) Present research in class.
k) Engage in a graduate seminar as active participants; lead discussions
l) Write response papers based on a critical elaboration on the course material

Programme Outcomes
Common Outcomes For All Programs
1 Develop and deepen the current and advanced knowledge in the field with original thought and/or research and come up with innovative definitions based on Master's degree qualifications 5
2 Conceive the interdisciplinary interaction which the field is related with ; come up with original solutions by using knowledge requiring proficiency on analysis, synthesis and assessment of new and complex ideas. 5
3 Evaluate and use new information within the field in a systematic approach. 4
4 Develop an innovative knowledge, method, design and/or practice or adapt an already known knowledge, method, design and/or practice to another field; research, conceive, design, adapt and implement an original subject. 5
5 Critical analysis, synthesis and evaluation of new and complex ideas. 5
6 Gain advanced level skills in the use of research methods in the field of study. 4
7 Contribute the progression in the field by producing an innovative idea, skill, design and/or practice or by adapting an already known idea, skill, design, and/or practice to a different field independently. 4
8 Broaden the borders of the knowledge in the field by producing or interpreting an original work or publishing at least one scientific paper in the field in national and/or international refereed journals. 4
9 Demonstrate leadership in contexts requiring innovative and interdisciplinary problem solving. 4
10 Develop new ideas and methods in the field by using high level mental processes such as creative and critical thinking, problem solving and decision making. 5
11 Investigate and improve social connections and their conducting norms and manage the actions to change them when necessary. 5
12 Defend original views when exchanging ideas in the field with professionals and communicate effectively by showing competence in the field. 5
13 Ability to communicate and discuss orally, in written and visually with peers by using a foreign language at least at a level of European Language Portfolio C1 General Level. 5
14 Contribute to the transition of the community to an information society and its sustainability process by introducing scientific, technological, social or cultural improvements. 5
15 Demonstrate functional interaction by using strategic decision making processes in solving problems encountered in the field. 3
16 Contribute to the solution finding process regarding social, scientific, cultural and ethical problems in the field and support the development of these values. 4
Common Outcomes For All Programs
1 Develop the ability to use critical, analytical, and reflective thinking and reasoning 5
2 Reflect on social and ethical responsibilities in his/her professional life. 3
3 Gain experience and confidence in the dissemination of project/research outputs 4
4 Work responsibly and creatively as an individual or as a member or leader of a team and in multidisciplinary environments. 4
5 Communicate effectively by oral, written, graphical and technological means and have competency in English. 5
6 Independently reach and acquire information, and develop appreciation of the need for continuously learning and updating. 5
Common Outcomes ForFaculty of Arts & Social Sci.
1 Develop a thorough knowledge of theories, concepts, and research methods in the field and apply them in research design and data analysis. 5
2 Assess the impact of the economic, social, and political environment from a global, national and regional level. 5
3 Know how to access written and visual, primary and secondary sources of information, interpret concepts and data from a variety of sources in developing disciplinary and interdisciplinary analyses. 5
Common Outcomes ForFaculty of Eng. & Natural Sci.
1 Design and model engineering systems and processes and solve engineering problems with an innovative approach. 1
2 Establish experimental setups, conduct experiments and/or simulations. 1
3 Analytically acquire and interpret data. 1
Political Science (with thesis) Program Outcomes Core Electives
1 Begin to grasp historical evolution and contemporary character of world politics. 5
Public Policy (with thesis) Program Outcomes Area Electives
1 Understand the policy-making process in the contemporary world. 4
2 Contribute to the design of public policy using a multidisciplinary perspective in specific policy areas. 2
3 Develop ability to evaluate the impact of public policy. 2
Industrial Engineering (with thesis) Program Outcomes Area Electives
1 Establish a strong theoretical background in several of a broad range of subjects related to the discipline, such as manufacturing processes, service systems design and operation, production planning and control, modeling and optimization, stochastics, statistics. 1
2 Develop novel modeling and / or analytical solution strategies for problems in integrated production and service systems involving human capital, materials, information, equipment, and energy, also using an interdisciplinary approach whenever appropriate. 1
3 Implement solution strategies on a computer platform for decision-support purposes by employing effective computational and experimental tools. 1
4 Acquire skills to independently explore and tackle problems related to the discipline that were not encountered previously. Develop appropriate modeling, solution, implementation strategies, and assess the quality of the outcome. 1
International Relations (non-thesis) Program Outcomes Area Electives
1 Be informed about the design and implementation processes of international policies in Turkey and around the world. 4
2 Understand the historical development and current functioning of international structures and establishments. 4
3 Comprehend the structures, roles, and functions of international, regional and inter-governmental organizations. 5
4 Develop an understanding of the process of foreign policy making, along with its bureaucratic structure, actor-structure relationship, and the interaction with domestic political environment and actors; and to acquire the ability to appraise the effects thereof and to bring forth suggestions for improvement. 5
5 Obtain the scientific background and formation leading to advanced academic study. 5
Computer Science and Engineering (with thesis) Program Outcomes Area Electives
1 Apply knowledge of mathematics, science, and engineering in computer science and engineering related problems. 1
2 Display knowledge of contemporary issues in computer science and engineering and apply to a particular problem. 1
3 Demonstrate the use of results from interpreted data to improve the quality of research or a product in computer science and engineering. 1
Assessment Methods and Criteria
  Percentage (%)
Term-Paper 30
Participation 20
Presentation 10
Other 40
Recommended or Required Reading

? Frieden, Jeffry. and L. Martin. 2002. ?International Political Economy: The State of the Sub-Discipline,? In Ira Katznelson and Helen Milner, Political Science: The State of the Discipline, New York: Norton.
? Frieden, Jeffry. A. 2006. Global Capitalism, New York: Norton, Chapters 1-3.
? Hiscox, Michael J. 2004. ?The Domestic Sources of Foreign Economic Policies? in Ravenhill J. (ed) Global Political Economy, Oxford University Press, pp.50-84.
? Ronald Rogowski. 1987. "Political Cleavages and Changing Exposure to Trade," American Political Science Review 81 (4):1121-1137.
? Milner, Helen. 1999. ?The Political Economy of International Trade.? Annual Review of Political Science 2, 91-114.
? Milner, Helen V. and Keiko Kubota. 2005. ?Why the Move to Free Trade? Democracy and Trade Policy in the Developing Countries.? International Organization 59(1):157?193.
? Hainmueller, Jens and Michael J. Hiscox. 2006. Learning to Love Globalization: The Effects of Education on Individual Attitudes towards International Trade, International Organization, 60 (2): 469-498.
? Goldstein, Judith, and Lisa Martin. 2000. ?Legalization, Trade Liberalization, and Domestic Politics.? International Organization 54 (3): 603-32.
? Busch, Marc L. and Krzysztof J. Pelc. 2010. ?The Politics of Judicial Economy at the World Trade Organization?, International Organization, 64: 257-279.
? Johns, Leslie and Krzysztof J. Pelc. 2014. ?Who Gets to Be In the Room? Manipulating Participation in WTO Disputes,? International Organization, 68 (3): 663 ? 699.
? Davis, C. 2006. ?Do WTO Rules Create a Level Playing Field for Developing Countries? Lessons From Peru and Vietnam,? in J Odell (ed.) Negotiating Trade, Cambridge University Press.
? Borzel, Tanja A. 2011. ?Comparative Regionalism, A New Research Agenda?, KFG, The Transformative Power of Europe Working Papers, No. 28.
? Mansfield, Edward D. ?Regionalism, Multilateralism and Globalization.?.
? Krueger, Anne. 1999. ?Are Preferential Trading Agreements Trade-Liberalizing or Protectionist?? Journal of Economic Perspectives 13 (4).
? Baldwin, Richard. 2006. ?Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade,? World Politics.
? Oxfam. 2002. ?Rigged Rules and Double Standards: Trade, Globalization, and the Fight Against Poverty.? Trade Report.
? Ozel, Is?k. 2011. ?Economic Development,? G.T. Kurian (ed.) The Encyclopedia of Political Science, Washington D.C.: CQ Press, Vol. 2, pp. 416-420.
? Dollar, David and Art Kraay. 2001. ?Trade, Growth, and Poverty.? World Bank Policy Research Working Paper, No. 2615.
? Rodrik, Dani. ?Comments on ?Trade, Growth, and Poverty.?
? Rodrik, Dani. 2008. One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton, NJ: Princeton University Press, chapter 1.
? Krueger, Anne. 1997. ? Trade Policy and Economic Development: How We Learn.? NBER Working Paper 5896. Cambridge MA.
? Rodrik, Dani. 2008. One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton, NJ: Princeton University Press, chapters 3-5.
? Acemo?lu, Daron, S. Johnson and J. Robinson. 2004. Institutions as the Fundamental Cause of Long Run Growth, Aghion and Durlauf eds., Handbook of Economic Growth.
? Evans, Peter B. 2008. ?In the Search of the 21st Century Developmental State.? Center for Global Political Economy Working Paper 4: 1-22.
? Stallings, Barbara. 1992. ?International Influence on Economic Policy: Debt, Stabilization and Structural Reform? in Haggard, Stephan and Robert Kaufman eds. The Politics of Economic Adjustment, Princeton University Press, pp.41-88.
? Remmer, Karen. 1998. "The Politics of Economic Reform in Latin America." Studies in Comparative International Development. 33: 3-29.
? Weyland, Kurt. 1998. "The Political Fate of Market Reform in Latin America, Africa, and Eastern Europe." International Studies Quarterly 42: 645-.
? Murillo, Victoria. 2000. ?From Populism to Neoliberalism: Labor Unions and Market Reforms in Latin America,? World Politics, 52 (2): 135-174.
? Yang, Dali L. 1996. "Governing China's transition to the market: Institutional incentives, politicians' choices, and unintended outcomes." World Politics, 48:3, pp. 424-452.
? Qian, Yingyi. 2003. "How Reform Worked in China" in Dani Rodrik (ed), In Search of Prosperity: Analytic Narratives on Economic Growth, Princeton University Press, pp. 297-333.
? Jensen, Nathan. 2003. ?Rational Citizens against Reform: Economic Reform in Transition Economies.? Comparative Political Studies 36: 1092-1112.
? Chen, Calvin and Rudra Sil. 2006. "Communist Legacies, Postcommunist Transformations, and the Fate of Organized Labor in Russia and China." Studies in Comparative International Development, 41:2, pp. 62-87.
? Chibber, Pradeep and Samuel Eldersveld. 2000. "Local Elites and Popular Support for Economic Reform in China and India." Comparative Political Studies, 33:3, pp. 350-373.
? Campos, Nauro F. And Yuko Kinoshita. 2003. ?Why does FDI go where it goes? New Evidence from the Transition Economies,? IMF Working Paper No. 03/228.
? Padya, Sonal S. 2010. ?Labor Markets and the Demand for Foreign Direct Investment?, International Organization, 64: 389-489.
? Jensen, Nathan. 2003. ?Democratic Governance and Multinational Corporations: The Political Economy of Foreign Direct Investment,? International Organization 57, 3.
? Quan Li and A. Resnick. 2003. ?Reversal of Fortunes: Democratic Institutions and Foreign Direct Investment Inflows to Developing Countries.? International Organization 57, 1: 175-211.
? Scheve, Kenneth and Matthew J. Slaughter. 2004. ?Economic Insecurity and the Globalization of Production.? American Journal of Political Science 48, 4.
? Campos, N. F. and Y. Kinoshita, 2008. "Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America," IMF Working Papers 08/26
? Mosley, Layna. 2000. ?Room to Move: International Financial Markets and National Welfare States?, International Organization, 54(4): 737?773.
? Mosley, Layna. 2005. ?Globalisation and the State: Still Room to Move??, New Political Economy, Vol. 10, No. 3.
? Rudra, Nita. 2002. ?Globalization and the Decline of the Welfare State in Less-Developed Countries.?International Organization, 56:2:411-445.
? Stiglitz, J. 2003. ?Capital Market Liberalization, Economic Growth and Instability?, World Development, Vol. 38. No. 8.
? Christopher J. Neely, ?An Introduction to Capital Controls,? Federal Reserve Bank of St. Louis Review 81:6 (Nov/Dec 1999):13-30.
? Sebastian Edwards, ?How Effective Are Capital Controls?? Journal of Economic Perspectives 13, 4 (Fall 1999):65-84.
? Kus, Basak. 2012.?Financialisation and Income Inequality in OECD Nations: 1995-2007,? The Economic and Social Review, Vol. 43, No. 4, Winter 2012, pp. 477?495
? Rodrik, Dani. 2010. The Globalization Paradox: Democracy and the Future of the World Economy, chapters TBA.
? Gallagher, Mary Elizabeth. 2002. "Reform and Openness": Why China's Economic Reforms Have Delayed Democracy." World Politics, 54 (3): 338-72.
? Acemo?lu, Daron and James Robinson. 2012. Why Nations Fail: The Origins of Power, Prosperity, and Poverty, NY: Crown, chapters TBA.
? Rodrik, Dani. 2010. The Globalization Paradox: Democracy and the Future of the World Economy, chapters TBA.
? Acemo?lu, Daron and James Robinson. 2012. Why Nations Fail: The Origins of Power, Prosperity, and Poverty, NY: Crown, chapters TBA.

Optional Readings

? Alt, J. E. and Michael Gilligan. 1994. "The Political Economy of Trading States: Factor Specificity, Collective Action Problems, and Domestic Political Institutions," Journal of Political Philosophy 2, 2:165-92.
? Alt, J. E., Frieden J., Gilligan, M.J. ,Rodrik D., and R. Rogowski. 1996. ?The Political Economy of International Trade: Enduring Puzzles and an Agenda for Inquiry,? Comparative Political Studies 29, 6: 689-717.
? Ardanaz, Martin, M. Victoria Murillo and Pablo M. Pinto. 2013. ?Sensitivity to Issue Framing on Trade Policy Preferences: Evidence from a Survey Experiment?, International Organization, 67 (2): 411 ? 437.
? Odell, John ed. 2006. Negotiating Trade, Developing Countries and the Trade Negotiation Process. Cambridge: Cambridge University Press.
? Marc Busch and Eric Reinhardt. 2003. Developing Countries and GATT/WTO Dispute Settlement. Journal of World Trade 37 (4): 719?735.
? Busch, March. 2007. ?Overlapping Institutions, Forum Shopping, and Dispute Settlement in International Trade.? International Organization, 61(4): 735-761.
? Caporaso, James A. And Sidney Tarrow. 2009. ?Polanyi in Brussels: Supranational Institutions and the Transnational Embedding of Markets, International Organization , 63 (4): 593-620
? Mansfield, Edward, and Eric Reinhardt. 2003. ?Multilateral Determinants of Regionalism: The Effects of GATT/WTO on the Formation of Preferential Trading Arrangements.? International Organization 57 (4): 829-62.
? Panagariya, Arvind. 2002. ?EU Preferential Trade Arrangements and Developing Countries.? The World Economy: 1415-1432.
? Chase, Kerry. 2003. ?Economic Interests and Regional Trading Arrangements: The Case of NAFTA. ?International Organization,57 (1): 137-174.
? Oxfam, ?Running into the Sand: Why Failure at the Cancun Trade Talks Threatens the World?s Poorest People.? Oxfam Briefing Paper 53, August 2003.
? Rodrik, Dani. 1999. "The new global economy and developing countries: Making openness work?, Washington, DC: Overseas Development Council & Johns Hopkins University Press.
? Beth Simmons and Zachary Elkins. 2004. ?The Globalization of Liberalization: Policy Diffusion in the International Political Economy.? American Political Science Review 98: 171-190.
? Haggard, Stephan and Robert Kaufman eds. 1992. The Politics of Economic Adjustment, Princeton University Press, pp. 3-40.
? Yang, Dali L. 2004. Remaking the Chinese Leviathan: Market Transition and the Politics of Governance in China. Palo Alto: Stanford University Press.
? Aslund, Andres. 1995. How Russia became a Market Economy, Washington D.C.: The Brookings Institution. Chapters TBA.
? Kahler, Miles. 1998. ?Introduction: Capital Flows and Financial Crises in the 1990s? in Miles Kahler (ed.), Capital Flows and Financial Crises, Manchester: Manchester University Press, pp. 1-22.
? Krippner, Greta R. 2011. Capitalizing on Crisis: The Political Origins of the Rise of Finance. Cambridge, MA: Harvard University Press. Chapters 1-3.
? Jeffry A. Frieden, Global Capitalism, Chapters 12, 15, and 20.
? Eichengreen, Barry. 1996. Globalizing Capital: A History of the International Monetary System. Princeton University Press.
? Krugman, Paul. 2000. ?Crisis: The Price of Globalization?? in Global Economic Integration: Opportunities and Challenges.
? Akyuz, Y?lmaz and Andrew Cornford 1999. ?Capital Flows to Developing Countries and the Reform of the International Financial System?, UNCTAD/OSG/DP/143
? Mosley, Layna. 2003. Global Capital and National Governments, Cambridge University Press.
? Stallings, Barbara. 2001. ?Globalization and Liberalization: The Impact on Developing Countries?, Santiago: CEPAL.
? Boyer, Robert. 2008. ?A Finance-Led Growth Regime?? in Erturk, I., J. Froud, S. Johal, A. Leaver and K. Williams (eds.), Financialization at Work, London: Routledge.
? Stiglitz, Joseph E. 2002. Globalization and Its Discontents. Allen Lane Books.
? Bhagwati, Jagdish. 2004. In Defense of Globalization. Oxford University Press.
? Stiglitz, Joseph E. 2008, ?Making Globalisation Work,? The Economic and Social Review, Vol. 39, No. 3: 171?190.