Political Economy Definition

The types of a political economy include socialism , capitalism (where private owners control a nation’s industry and trade for profit), and communism (the theory where all property is publicly-owned and everyone works based on their own needs and strengths). Political economy is a branch of social science that studies the relationship that forms between a nation’s population and its government when public policy is enacted. It is, therefore, the result of the interaction between politics and the economy and is the basis of the social science discipline.

In the monetary field there is the interaction between the sovereign debt crisis in the Eurozone, the political responses to the crisis and the institutional reforms that the evolving crisis have imposed on the Eurozone. In the field of international https://www.sextonseattle.com/ we focus on the EU’s foreign economic policies and the EU’s role in shaping global economic regimes such as the international investment regime or the World Trade Organization. We study how different social models affect the workings of capitalism and how the different varieties of capitalism in turn influence social models. Another area of research relates to the interaction between the labour market institutions and the economic governance of the EU and the Eurozone. In particular, political economic analysis might take into account how tariffs can be used as a strategy to influence the pattern of national economic growth (neo-mercantilism) or biases in the global system of international trade that may favour developed countries over developing ones (neo-Marxist analysis).

Research by political economists is conducted in order to determine how public policy influences behavior, productivity, and trade. Much of their study helps them establish how money and power are distributed between people and different groups. Their study generally involves the examination of how public policy, the political situation, and political institutions impact a country’s economic standing and future through a sociological, political, and economic lens.

It offers a detailed analysis of the EU’s participation in all major trade and investment negotiations since the 1980s and EU-internal competence debates to identify the causes behind the EU’s growing role in this policy domain. Such themes were evident in the 1990s and the early 21st century when a number of politically and economically powerful multinational corporations were accused of exploiting women and children in unsanitary and unsafe working conditions in their factories in developing countries. These cases and others like them were seen by some structuralists as evidence of a “race to the bottom” in which, in order to attract investment by international businesses, many developing countries relaxed or eliminated worker-protection laws and environmental standards.

In the second half of the 20th century, as the social sciences became increasingly abstract, formal, and specialized in both focus and methodology, https://www.wikipedia.org/ was revived to provide a broader framework for understanding complex national and international problems and events. The field of political economy today encompasses several areas of study, including the politics of economic relations, domestic political and economic issues, the comparative study of political and economic systems, and international political economy. The emergence of international political economy, first within international relations and later as a distinct field of inquiry, marked the return of political economy to its roots as a holistic study of individuals, states, markets, and society.