International Political Economy (IR 391)

2023 Fall
Faculty of Arts and Social Sciences
International Relations(IR)
Fatih Serkant Adıgüzel,
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ECON202 IR201 SPS101 SPS102
Formal lecture,Interactive lecture
Interactive,Communicative,Discussion based learning,Project based learning,Simulation,Case Study
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This course examines the interaction between politics and economics on an international scale. International political economy (IPE) is a field situated at the intersection of markets and politics. Through analyzing the nature of economic and political linkages at the global level, this course focuses on varying roles of states; multilateral and domestic institutions; and, non-state actors in shaping prevalent processes in the IPE. The main goal of this course is to expose students to theoretical debates and substantive empirical issues in the contemporary IPE scholarship. In order to meet this goal, we will discuss major theoretical approaches in the IPE field and analyze substantive empirical issues in light of these approaches. The empirical issues we will study include: international monetary relations; international trade and capital flows; and, contemporary phenomena like globalization and regionalization. Overall, this course seeks to help students develop theoretical knowledge and analytical skills in the field of IPE.


This course aims to introduce students to major theoretical and empirical issues in the sub-field of international political economy (IPE). It will focus on several issue areas in IPE such as international trade, international monetary system, international production networks (multinational corporations) and development in the context of ongoing regional and global integration. The course will be constituted of four distinct parts whose detailed contents are explained under the Course Schedule.

Part I will explore major theoretical perspectives in IPE and their application on empirical issues, especially the global and regional integration of markets. Providing a brief historical background for the emergence and prevalence of increasing integration and interdependence at the global and regional levels, this part will discuss the milestones with respect to the evolution of interdependence at the global and regional markets in the 20th and 21st centuries.

Part II will discuss political economy of international and regional trade studying the role of the interest groups and distributional issues, along with the international and regional organizations. It will examine multilateral and preferential trade agreements including the customs unions and free trade agreements; scrutinize the recent changes regarding trade; and elaborate on the role of the international, regional and supranational organizations in such changes.

Part III will discuss the North-South divide and economic development. It will go through major development strategies implemented by developing countries since the 1950s; assess varying levels of success and failure across countries. Then it will examine market transitions, ?the Washington Consensus?, ?post-Washington consensus? and ?the Beijing Consensus?. Finally, it will discuss the ongoing challenges faced by developing countries in the context of global and regional integration.

Part IV will focus on the process of global integration and its diverse consequences. It will discuss the expansion of capital movements and their worldwide impact, addressing the expansion of multinational corporations and portfolio flows. It will go through the current debates on the validity and sustainability of different models in the context of globalization.


  • Comprehend the major issues, theories and approaches in IPE as well as the contemporary debates around those.
  • Identify how major issue areas in IPE are examined through the varying perspectives of leading theories and approaches.
  • Understand the complexity of the interplay between interests, institutions and ideas in making of foreign economic policy decisions.
  • Apply the designated economic theories on the analysis of interests and policy outcomes
  • Evaluate policy outcomes in the context of the IPE scholarship and empirical developments.
  • Analyze the complementary and contradictory aspects of global and regional integration and national development.
  • Develop skills to do an analytical and critical reading about the IPE literature
  • Conduct empirical research on major issue areas in IPE and apply critical perspectives on such research.


1. Understand the world, their country, their society, as well as themselves and have awareness of ethical problems, social rights, values and responsibility to the self and to others. 4

2. Understand different disciplines from natural and social sciences to mathematics and art, and develop interdisciplinary approaches in thinking and practice. 2

3. Think critically, follow innovations and developments in science and technology, demonstrate personal and organizational entrepreneurship and engage in life-long learning in various subjects; have the ability to continue to educate him/herself. 4

4. Communicate effectively in Turkish and English by oral, written, graphical and technological means. 5

5. Take individual and team responsibility, function effectively and respectively as an individual and a member or a leader of a team; and have the skills to work effectively in multi-disciplinary teams. 5

1. Possess sufficient knowledge of mathematics, science and program-specific engineering topics; use theoretical and applied knowledge of these areas in complex engineering problems.

2. Identify, define, formulate and solve complex engineering problems; choose and apply suitable analysis and modeling methods for this purpose.

3. Develop, choose and use modern techniques and tools that are needed for analysis and solution of complex problems faced in engineering applications; possess knowledge of standards used in engineering applications; use information technologies effectively.

4. Have the ability to design a complex system, process, instrument or a product under realistic constraints and conditions, with the goal of fulfilling specified needs; apply modern design techniques for this purpose.

5. Design and conduct experiments, collect data, analyze and interpret the results to investigate complex engineering problems or program-specific research areas.

6. Possess knowledge of business practices such as project management, risk management and change management; awareness on innovation; knowledge of sustainable development.

7. Possess knowledge of impact of engineering solutions in a global, economic, environmental, health and societal context; knowledge of contemporary issues; awareness on legal outcomes of engineering solutions; knowledge of behavior according to ethical principles, understanding of professional and ethical responsibility.

8. Have the ability to write effective reports and comprehend written reports, prepare design and production reports, make effective presentations, and give and receive clear and intelligible instructions.

1. Develop knowledge of theories, concepts, and research methods in humanities and social sciences. 5

2. Assess how global, national and regional developments affect society. 5

3. Know how to access and evaluate data from various sources of information. 3

1. Analyze global affairs from international relations and economics perspectives. 5

2. Demonstrate theoretical and practical knowledge of the international affairs. 5

3. Compete for increasing opportunities in careers within the newly emerging global institutions. 4

4. Evaluate the international political events and present their views and positions on international affairs with advanced oral and written skills. 5

1. To analyze national and global events from various social science perspectives.

2. To demonstrate theoretical and practical knowledge on political science and international relations and to state views and positions with advanced oral and written skills.

3. To compete for increasing career opportunities in national and global institutions.

4. To (be able to) understand and follow the changes in political behaviours, opinions and structures.

5. To gain the ability to make logical inferences on social and political issues based on comparative and historical knowledge.

1. Understand and follow changes in patterns of political behavior, ideas and structures. 5

2. Develop the ability to make logical inferences about social and political issues on the basis of comparative and historical knowledge. 4


  Percentage (%)
Final 30
Midterm 20
Participation 10
Individual Project 20
Group Project 10
Presentation 10



Oatley, Thomas. 2013. International Political Economy, Interests and Institutions in the Global Economy, 5th edition, New York: Pearson Longman.


-Lairson, Thomas D. and David Skidmore, International Political Economy, the Struggle for Power and Wealth, Thomson and Wadsworth, chapters 3-4
- United Nations Monetary and Financial Conference at Bretton Woods. Summary of Agreements. July 22, 1944.
- Marshall Plan Speech by George Marshall.
- Oxfam. 2002. ?Rigged Rules and Double Standards: Trade, Globalization, and the Fight against Poverty?. Oxfam Trade Report.
- Miles, T. ?Argentina complains to WTO over Spanish biodiesel rules, Reuters, 8/20/2012.
- Nelson, R. and M.A. Weiss. 2015. ?IMF Reforms: Issues for Congress,? Washington, D.C.: Congressional Research Service.
- 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.
-United Nations Millennium Declaration.? 2000. Resolution adopted by the General Assembly, 55/2.
- Human Development Report 2014, Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience,? UNDP.

- World Trade Report 2011. The WTO and Preferential Trade Agreements: From Co-existence to Coherence,? World Trade Organization.
- Sen, A. ?How to Judge Globalism? in Lechner & Boli, pp.19-24.
- Friedman, T.L. 1999. ?The Lexus and the Olive Tree: Understanding Globalization?.
- Florida, Richard. 2005. ?The World is Spiky: Globalization has changed the economic playing field but hasn?t leveled it,? in O?Neil & Rogowski, Essential, pp. 590-595.
- Rodrik, D. ?Has Globalization Gone too Far?? in Lechner & Boli, pp.241-246.
- Subcomandante Marcos, ?Tomorrow Begins Today,? in Lechner & Boli, pp.474-478.
- World Social Forum, ?Porto Alegre Call for Mobilization,? in Lechner & Boli, pp.479-481.
- International Forum on Globalization,?A Better World is Possible,?Lechner&Boli, 482-493.
- Stiglitz, J.E.2008. ?Making Globalisation Work,? The Economic and Social Review, 39 (3): 171?190.

Optional Readings

? Bhagwati, J., P. Krishna and A. Panagaria eds. 1999. Trading Blocs. Alternative Approaches to Analyzing Preferential Trade Agreements, Cambridge: MIT Press.
? Cini, M. 2009. European Union Politics, Oxford University Press, 3rd edition.
? Cohen, B.J. and C. Lipson. 1999. Issues and Agents in International Political Economy, Cambridge: MIT Press.
? Dinan, D. 2005. Ever Closer Union: An Introduction to European Integration, Palgrave.
? Frieden, J. 2006. Global Capitalism, Norton.
? Frieden, J and Lake, D. eds. 2000. International Political Economy, Bedford/ St. Martin?s.
? Gillingham, J. 2003. European Integration, 1950-2003, Superstate or New Market Economy? New York: Cambridge University Press.
? Lechner, Frank J. and John Boli eds. 2008. The Globalization Reader, Blackwell Publishing.
? McCann, D. 2010. The Political Economy of the European Union, Cambridge: Polity Press.
? Oxfam. 2003. "Running into the Sand: Why Failure at the Cancun Trade Talks Threatens the World's Poorest People." Oxfam Briefing Paper 53.
? Goldstein, J. and L. Martin. 2000. ?Legalization, Trade Liberalization, and Domestic Politics.? International Organization 54 (3): 603-32.
? Wroughton, Lesley, "IMF Vote Reform Bogged Down by Delays, Deadlock," Reuters, 10/8/2012.
? Krugman and Obstfeld. 2003. International Economics, pp.186-217.
? Hiscox, M. J. 2004. "The Domestic Sources of Foreign Economic Policies" in Ravenhill J. (ed) Global Political Economy, Oxford University Press, pp.50-84.
? Özel, Işık. 2011. ?Economic Development,? G.T. Kurian (ed.) The Encyclopedia of Political Science, Washington D.C.: CQ Press, Vol. 2, pp. 416-420.
? Rodrik, Dani. 2008. One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton, New Jersey: Princeton University Press.
? Yang, D L. 1996. "Governing China's transition to the market: Institutional incentives, politicians' choices, and unintended outcomes." World Politics, 48(3): 424-452.
? Qian, Y. 2003. "How Reform Worked in China" in Rodrik (ed), In Search of Prosperity: Analytic Narratives on Economic Growth, Princeton University Press, pp. 297-333.
? Mosley, L. 2007. ?Racing to the Bottom or Climbing to the Top? Economic Globalization and Collective Labor Rights,? Comparative Political Studies, 40: 923-948.
? Stiglitz, Joseph E. 2002. Globalization and Its Discontents, W.W. Norton & Co.

? Baldwin, R. 2006. ?Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade,? World Politics.
? Panagariya, A. 2002. ?EU Preferential Trade Arrangements and Developing Countries.? The World Economy: 1415-1432.
? Rodrik, Dani. 2010. The Globalization Paradox: Democracy and the Future of the World Economy.