Formal Models of International Political Economy

Abstract

This chapter examines how scholars use formal models to study International Political Economy (IPE). This small, but important, body of research revolves around three substantive research questions. First, scholars have asked: how do states promote international trade by reducing tariffs and non-tariff barriers? Second, they ask: how do states encourage foreign investment by making binding pledges to protect foreign investors? Finally, scholars have studied: how do states stabilize and grow their economies? For each of these topics, the chapter looks back at past findings from formal models. It then discusses how IPE scholars can profitably move forward in their future research on these important topics.