Gilpin: Global Political Economy

Gilpin, R, and JM Gilpin. 2003. Global political economy: Understanding the international economic order. Orient Longman.

"Whereas economics is primarily concerned with efficiency and the mutual benefits of economic exchange, international political economy is interested not only in those subjects but also in a broader range of issues. IPE is particularly interested in the distribution of gains from market activities; neoclassical economics is not. Although, at least over the long term, every society gains absolutely from the efficient functioning of international markets, the gains are seldom distributed equally among all economic actors, and states generally are very much concerned over their own relative gains. Whereas economists regard markets as self-regulating mechanisms isolated from political affairs, specialists in IPE are interested in the fact that the world economy has a considerable impact on the power, values, and political autonomy of national societies. States have a strong incentive to take actions that safeguard their own values and interests, especially their power and freedom of action, and they also attempt to manipulate market forces to increase their power and influence over rival states or to favor friendly states" (77).

"Whereas economists and economic analysts are generally indifferent to the role of institutions in economic affairs...the nature of the international institutions and those international regimes that govern international markets and economic activities constitute a central concern of international political economists. As regimes may significantly affect the distribution of gains from economic activities and the economic/political autonomy of individual states, states-especially powerful states-attempt to influence the design and functioning of institutions in order to advance their own political, economic, and other interests. Thus, the study of international political economy presumes that states, multinational corporations, and other powerful actors attempt to use their power to influence the nature of international regimes" (77-8).