Global Political Economy

List of Abbreviations and Acronyms ix Preface xi ONE. The New Global Economic Order 3 Changes in the World Economy 5 Intellectual Perspectives 13 My Perspective: State-centric Realism 15 Purpose of Economic Activity 23 Conclusion 24 TWO. The Nature of Political Economy 25 What You Seek Is What You Find 31 The Nature of an Economy 38 Embeddedness of the Economy 41 Conclusion 45 THREE. The Neoclassical Conception of the Economy 46 The Discipline of Neoclassical Economics 46 Nature of a Market 54 Method of Comparative Statics 57 Intellectual Limitations 60 Economists and Public Policy 69 Comparison of Economics and Political Economy 74 Conclusion 76 FOUR. The Study of International Political Economy 77 Distribution of Wealth and Economic Activities 78 National Autonomy 80 The Politics of International Regimes 82 Theory of Hegemonic Stability 93 Governance of the Global Economy 97 Conclusion 102 FIVE. New Economic Theories 103 Change and Neoclassical Economics 104 World View of the New Theories 106 The New Theories 108 Conclusion 127 SIX. The Political Significance of the New Economic Theories 129 National Governments and Domestic Economies 129 Oligopoly and Power in Economic Outcomes 132 Technological Innovation 135 Convergent and Divergent Economic Growth 141 Conclusion 147 SEVEN. National Systems of Political Economy 148 Differences among National Economies 149 The American System of Market-Oriented Capitalism 150 The Japanese System of Developmental Capitalism 156 The German System of "Social Market" Capitalism 168 Significance of National Differences 174 Is One System Superior to the Others? 175 Do Nations Compete with One Another? 180 Convergence, Harmonization, or Mutual Recognition? 183 Conclusion 195 EIGHT. The Trading System 196 The Debate over Free Trade 198 Trade and the Economy 202 Revisions of Conventional Trade Theory 206 Postwar Trade Regime 217 The Uruguay Round and World Trade Organization 221 New Threats to an Open Trading System 224 Conclusion 232

"An extremely well written, lucid, and persuasive analysis of international economic developments and their political implications and results, solidly grounded in history."--Arthur I Cyr, Orbis "[A] scholarly, theoretical framework for examining how markets and the policies of nation-states determine the way the world economy functions."--Booklist "Global Political Economy promises to be another classic and a much-consulted addition to academic library bookshelves."--Choice "Robert Gilpin has written an important book... Although he eschews polemics and writes in a low-key, analytical style, his forceful points serve as a needed antidote to Thomas Friedman's The Lexus and the Olive Tree and other facile works about the subject."--Christopher Layne, The Atlantic Monthly "In this magisterial study Gilpin... shows he is second to none in his capacity to integrate political with economic analysis, and illuminate our understanding of the world political economy with historical and theoretical insights, devoid of the jargon that characterizes much contemporary IPE literature... Gilpin's is an authoritative, but modest voice of common sense."--Martin Rhodes, International Journal of Financial Economics "Global Political Economy is an excellent book. It represents a major and successful updating of The Political Economy of International Relations. Any person interested in international political economy can profit from reading it."--Jeffrey Hart, Journal of Politics