International Political Economy of Capitalism and Global Trade

The international political economy (IPE) of capitalism and global trade examines how political institutions, economic systems and power relations interact to shape the movement of goods, capital and ideas across borders. At its core lies the tension between market liberalisation and state intervention, as sovereign governments deploy regulatory, fiscal and diplomatic tools to advance national interests within a capitalist framework. The post-war era of multilateralism fostered unprecedented trade expansion, underpinned by institutions that set rules on tariffs, subsidies and dispute settlement. In recent years, however, that order has come under strain from rising economic nationalism, geopolitical rivalry and concerns over social and environmental outcomes. Debates centre on whether existing trade regimes can accommodate new forms of state capitalism, manage strategic supply chains and rein in practices seen as market-distorting. Simultaneously, scholars probe how powerful firms, transnational regulatory communities and emergent coalitions reconceive global governance in areas ranging from technical standards to climate-related trade measures. This field thus illuminates the evolving balance of competition and cooperation that defines capitalism’s global trajectory.

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International Political Economy of Capitalism and Global Trade publication trend

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Technical terms

International Political Economy (IPE): The interdisciplinary study of how political forces, economic systems and institutions shape transnational flows of trade, capital and regulation.

State capitalism: An economic model in which the state plays a dominant role in directing investment, owning key enterprises and using market mechanisms to achieve strategic objectives.

Deglobalisation: The process by which countries reduce economic interdependence through the imposition of trade barriers, reshoring of production or selective decoupling.

Geoeconomic turn: A shift towards the use of economic tools—investment screening, industrial policy and trade controls—as instruments of geopolitical competition.

Coopetition: A strategic approach combining elements of competition and cooperation between states or firms to achieve shared and divergent objectives simultaneously.

References

1. Can the World Trade Organization Act as a Bulwark Against Deglobalization?. Asian Economic Policy Review (2023).
2. Rethinking international subsidy rules. World Economy (2020).
3. Who will win the competitive game between China and United States?. Research in Globalization (2024).
4. Chinese Multinationals and Europe’s Geoeconomic Turn: The De‐Globalization of the Chinese ICT and Automotive Industry?. Politics and Governance (2024).