Thoughts on the Political Economy of International Trade

Abstract

International trade appears to be strongly dependent on the political environment and institutional arrangements. In this context, the commented strand of economics is expected to follow the relationships that can be turbulent. The paper reviews the available literature on international trade, with a particular focus on aspects of the political economy. These threads are described in the context of the past and present literature, as well as prospects for future research. Over the decades, the focus of the debate has shifted strongly. The analysed issues reflect not only current events affecting the shape of international trade, but also the availability of data or the growing range of quantitative tools. The observed progress and evolution of the political economy of international trade has brought numerous conclusions of scientific and practical importance.