A Framework for Geoeconomics

Christopher Clayton, Matteo Maggiori and Jesse Schreger

No cxwmr_v1, SocArXiv from Center for Open Science

Abstract: Governments use their countries’ economic strength from financial and trade relationships to achieve geopolitical and economic goals. We provide a model of the sources of geoeconomic power and how it is wielded. The source of this power is the ability of a hegemonic country to coordinate threats across disparate economic relationships as a mean of enforcement on foreign entities. The hegemon wields this power to demand costly actions out of the targeted entities, including mark-ups, import restrictions, tariffs, and political concessions. The hegemon uses its power to change targeted entities’ activities to manipulate the global equilibrium in its favor and increase its power. A sector is strategic either in helping the hegemon form threats or in manipulating the world equilibrium via input-output amplification. The hegemon acts a global enforcer, thus adding value to the world economy, but destroys value by distorting the equilibrium in its favor.

Date: 2023-06-11
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://osf.io/download/64824ee80ed90f01568a4dfb/

Related works:
Working Paper: A Framework for Geoeconomics (2024)
Working Paper: A Framework for Geoeconomics (2023)
Working Paper: A Framework for Geoeconomics (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:cxwmr_v1

DOI: 10.31219/osf.io/cxwmr_v1

Access Statistics for this paper

More papers in SocArXiv from Center for Open Science
Bibliographic data for series maintained by OSF ().