Open Economy Politics Revisited

Abstract

Scholars of International Political Economy (IPE) working in the open economy politics (OEP) tradition use interests, institutions and international bargaining to explain economic policies, as well as international economic relations. A large amount of research in IPE today fits squarely within the OEP paradigm, which makes OEP itself an expedient subject for investigation. This chapter describes the OEP framework and discusses recent developments that have challenged it, including the behavioral revolution and the growing importance of economic geography. An evaluation of how the paradigm has evolved in response to these challenges is undertaken. The chapter concludes with a discussion of emerging issues that confront the OEP paradigm going forward, including the rise of China and the growing political backlash against globalization and the liberal international order.