POLI 7946: Seminar in the Politics of International Economic Relations Mondays 2:30-5:20 Fall Stubbs Hall

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1 POLI 7946: Seminar in the Politics of International Economic Relations Mondays 2:30-5:20 Fall Stubbs Hall Instructor Daniel C. Tirone 204 Stubbs Hall Phone: (225) Office Hours: Tuesdays 1:15-3:15, or by appointment Course Description: This course is a seminar in the international political economy subfield of international relations. The goal for the course is to familiarize students with prominent scholarship in many of the subject areas within IPE, including issues relating to the politics of monetary systems, trade, and foreign aid. There are no prerequisites for the course, but students who have taken the graduate proseminar in international relations or who have studied economics at the undergraduate or graduate level will find themselves utilizing material they have studied in these courses. Students who have not taken these courses will still be able to access the material, as each of the major economic and theoretical concepts will be discussed in-class. General Statement on Academic Integrity: Louisiana State University adopted the Commitment to Community in 1995 to set forth guidelines for student behavior both inside and outside of the classroom. The Commitment to Community charges students to maintain high standards of academic and personal integrity. All students are expected to read and be familiar with the LSU Code of Student Conduct and Commitment to Community, found online at It is your responsibility as a student at LSU to know and understand the academic standards for our community. Students who are suspected of violating the Code of Conduct will be referred to the Office of Student Advocacy and Accountability. For undergraduate students, a first academic violation could result in a zero grade on the assignment or failing the class and disciplinary probation until graduation. For a second academic violation, the result could be suspension from LSU. For graduate students, suspension is the appropriate outcome for the first offense. Plagiarism and Citation Method: As a student at LSU, it is your responsibility to refrain from plagiarizing the academic property of another and to utilize appropriate citation method for all coursework. Ignorance of the citation method is not an excuse for academic misconduct. Remember there is a difference between paraphrasing and quoting and how to properly cite each respectively. If you have questions regarding what is appropriate, please consult with the library s tutorials on avoiding plagiarism and proper citation formats (links are also provided on the course Moodle page).

2 Group work and unauthorized assistance: All work must be completed without assistance unless explicit permission for group or partner work is given by the faculty member. This is critical so that the professor can assess your performance on each assignment. If a group/partner project is assigned, the student may still have individual work to complete. Read the syllabus and assignment directions carefully. You might have a project with group work and a follow up report that is independently written. When in doubt, the faulty member or ask during a class session. Seeking clarification is your responsibility as a student. Assuming group/partner work is okay without permission constitutes a violation of the LSU Code of Student Conduct. Students requiring special accommodation: Louisiana State University is committed to providing reasonable accommodations for all persons with disabilities. Any student with a documented disability needing academic adjustments is requested to speak with the Disability Services and the instructor, as early in the semester as possible. All discussions will remain confidential. This publication/material is available in alternative formats upon request. Please contact the Disability Services, 115 Johnston Hall, (225) Course Expectations: A few notes on participation: 1. All students are expected to participate in class discussions. Students are therefore expected to come to class prepared, having read all of the assigned material for that week. 2. Many of the issues and approaches utilized in international relations are subject to debate. Students are therefore encouraged to question the material in a thoughtful and respectful manner. No student will be penalized for presenting an argument which questions the material presented; all perspectives are welcome, although they are also fair game for class discussion and debate. 3. In order to facilitate class discussion and preserve an environment in which all students are encouraged to participate, please keep your class contributions directed at the material and arguments presented and not at fellow class members. Comments of a personal nature directed against fellow students will not be tolerated. 2

3 Grading Policy: The grading breakdown is as follows: Class participation/leadership of class discussions: 25% Weekly research questions 15% On-time submission of research design paper proposal: 10% Research Design Paper, Final Draft: 50% A: % C: 70-79% F: 59% or below B: 80-89% D: 60-69% One student each week will be responsible for leading the class discussion of the assigned materials. This student should prepare notes including summaries of the research question under analysis; the main argument of each reading; the empirical approach, including methods and measures (if applicable); and finally, the author s primary finding and conclusion. The student must these notes to all other class members by 10am the day of class, and will be responsible for presenting these notes and leading the class discussion during that day s seminar. Submissions will be evaluated on timeliness of submission, thoroughness and accuracy of the material covered, and overall presentation (including basic editing and grammatical style). Students who are not leading the discussion that week must themselves prepare a brief series of research questions and responses to the assigned readings. These question and responses can be potential research topics drawn from the readings, methodological or theoretical questions which particularly struck the student as he or she read the article, or criticisms of the theory and/or research methods. Each student must submit these questions to the instructor by no later than midnight on Sunday. Assignments will be evaluated on timeliness of submission, thoughtfulness and creativity, and general execution. Each student will turn in a research design paper by the end of the semester at the time noted on the syllabus. The paper must focus on an issue related to international political economy, including but not limited to the topics included in class. I highly recommend that you meet with me prior to submitting your paper proposal by the time and dated noted in the syllabus. The proposal need only be one or two pages, and should focus on identifying the research question under analysis; which subfield of international political economy the question relates to; the theory and hypotheses to be examined; and how these relate to the current literature on the topic. These proposals will be largely evaluated for grading purposes on whether the assignment meets the guidelines and was submitted on time. However, I will provide feedback encouraging you to proceed as planned, or suggesting that we meet to discuss how the project could be improved. The final project should be approximately 10 to 15 pages, and follow general journal format. This means the paper must include the following elements: Introduction; Literature Review; and Theory Section, including hypotheses to be tested. For the empirical section, you do not actually need to run an analysis, but you do need to identify how you would do this. This means specifying your dependent and independent variables (including controls), a likely sample for the analysis (temporally and spatially), and where you 3

4 would obtain the data. You also must discuss broadly how you would execute your analysis and what results would support or work against your hypotheses. In essence, this project should be the basic structure of a journal article in IPE without the actual empirical analysis. If you have any questions at all about the assignment please do not hesitate to see me. Course Outline & Reading Schedule Week 1: August 26 Course Introduction Week 2: September 2 No Class Labor Day Part I: International Political Economy and Domestic Politics Week 3: September 9 Societal Preferences and Economic Policy Outcomes Rogowski, Ronald Political Cleavages and Changing Exposure to Trade. American Political Science Review 81(4): Frieden, Jeffry A Invested Interests: The Politics of National Economic Policies in a World of Global Finance. International Organization 45(4): Garrett, Geoffrey and Peter Lange Internationalization, Institutions, and Political Change. International Organization 49(4): Hiscox, Michael J Class Versus Industry Cleavages: Inter-Industry Factor Mobility and the Politics of Trade. International Organization 55(1): Frieden, Jeffry A Real sources of European Currency Policy: Sectoral Interests and European Monetary Integration. International Organization 56(4): Bearce, David H Societal Preferences, Partisan Agents, and Monetary Policy Outcomes. International Organization 57:

5 Part II: International Trade and Foreign Investment Week 4: September 16 The State, Its Citizens, and Globalization Ruggie, John Gerard. International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order. International Organization 36(2): Rodrik, Dani Why Do more Open Economies Have Bigger Governments? Journal of Political Economy 106(5): Kono, Daniel Y Optimal Obfuscation: Democracy and Trade Policy Transparency American Political Science Review 100(3): Kim, So Young Openness, External Risk, and Volatility: Implications for the Compensation Hypothesis. International Organization 61(1): Rudra, Nita Welfare States in Developing Countries: Unique or Universal The Journal of Politics 69(2): Week 5: September 23 Trade and Conflict Oneal, John R. and Bruce M. Russett The Classic Liberals Were Right: Democracy, Interdependence and Conflict, International Studies Quarterly 41(2): Mansfield, Edward D. and Brian M. Pollins The Study of Interdependence and Conflict: Recent Advances, Open Questions and Direction for Future Research Journal of Conflict Resolution 45(6): Gartzke, Erik and Quan Li Measure for Measure: Concept Operationalization and the Trade Interdependence-Conflict Debate. Journal of Peace Research 40(5): Maoz, Zeev The Effects of Strategic and Economic Interdependence on International Conflict Across Levels of Analysis. American Journal of Political Science 53(1): Kinne, Brandon J Multilateral Trade and Militarized Conflict: Centrality, Openness, and Asymmetry in the Global Trade Network. The Journal of Politics 74(1):

6 Week 6: September 30 PTAs and Trade Organizations Lipson, Charles The Transformation of Trade: The Sources and Effects of Regime Change. International Organization 36(2): Goldstein, Judith and Lisa L. Martin Legalization, Trade Liberalization and Domestic Politics: A Cautionary Note. International Organization 54(3): Mansfield, Edward D and Eric Reinhardt Multilateral Determinants of Regionalism: The Effects of GATT/WTO on the Formation of Preferential Trading Agreements International Organization 57: Rose, Andrew K Do We Really Know that the WTO Increases Trade? American Economic Review 94: Davis, Christina L. and Sarah Blodgett Bermeo Who Files? Developing Country Participation in GATT/WTO Adjudication. The Journal of Politics 71(3): Week 7: October 7 Foreign Investment Ahlquist, John S Economic Policy, Institutions, and Capital Flows: Portfolio and Direct Investment Flows in Developing Countries. International Studies Quarterly 50: Kosack, Stephen and Jennifer Tobin Funding Self-Sustaining Development: The Role of Aid, FDI and Government in Economic Success. International Organization 60: Blanton, Shannon Lindsey and Robert G. Blanton What Attracts Foreign Investors? An Examination of Human Rights and Foreign Direct Investment. Journal of Politics 69(1): Büthe, Tim and Helen V. Milner The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements? American Journal of Political Science 52(4): Malesky, Edmund J Straight Ahead on Red: How Foreign Direct Investment Empowers Subnational Leaders The Journal of Politics 70(1): Gray, Julia International Organization as a Seal of Approval: European Union Accession and Investor Risk. American Journal of Political Science 53(4):

7 Part III: Foreign Aid Week 8: October 14 Who, Why, and Does it Work? Rodrik, Dani Why is there Multilateral Lending? NBER Working Paper No Alesina, Alberto and David Dollar Who Gives Foreign Aid to Whom and Why? Journal of Economic Growth 5: Burnside, Craig, and David Dollar Aid, Policies, and Growth. American Economic Review 90: Clemens, Michael A., Steven Radelet, Rikhil R. Bhavnani, and Samuel Bazzi Counting Chickens When They Hatch: Timing and the Effects of Aid on Growth. Center for Global Development Working Paper 44. Svennson, Jakob Why Conditional Aid Does Not Work and What Can Be Done About It. Journal of Economic Development 7: Bueno de Mesquita, Bruce and Alastair Smith A Political Economy of Aid International Organization 63: Week 9: October 21 How Can Aid be Improved And Should It? Sachs, Jeffrey The End of Poverty: Economic Possibilities for Our Time Easterly, William The White Man s Burden: why the West s efforts to aid the rest have so much ill and so little good Moyo, Dambisa Dead Aid: Why Aid is Not Working and How There is a Better Way for Africa Week 10: October 28 Aid Externalities: What Else Does Aid Do Besides Promote Economic Growth? Research design proposal due by 1:30pm Finkel, Steven E., Aníbal Pérez-Liñán, and Mitchell A. Seligson The Effects of U.S. Foreign Assistance on Democracy Building, World Politics 59(3): Kono, Daniel Yuichi and Gabriella R. Montinola Does Foreign Aid Support Autocrats, Democrats, or Both? The Journal of Politics 71(2): Wright, Joseph How Foreign Aid Can Foster Democratization in Authoritarian Regimes. American Journal of Political Science 53(3):

8 Ahmed, Faisal Z The Perils of Unearned Foreign Income: Aid, Remittances, and Government Survival. American Political Science Review 106(1): Girod, Desha M Effective Foreign Aid Following Civil War: the Nonstrategic- Desperation Hypothesis. American Journal of Political Science 56(1): Savun, Burcu and Daniel C. Tirone Exogenous Shocks, Foreign Aid and Civil War. International Organization 66(3): Part IV: International Financial Institutions Week 11: November 4 Development and roles of the IFI s Cohen, Benjamin J Balance of Payments Financing: Evolution of a Regime. International Organization 36(2): Frieden, Jeff The Dynamics of International Monetary Systems: international and Domestic Factors in the Rise, Reign, and Demise of the Classical Gold Standard. In Coping with Complexity in the International System, eds. Jack Snyder and Robert Jervis. Westview Press. Fischer, Stan Financial crises and reform of the international financial system. Review of World Economics 139(1): Eichengreen, Barry Global Imbalances and the Lessons of Bretton Woods. NBER Working Paper Meissner, Christopher M A New World Order: Explaining the International Diffusion of the Gold Standard, Journal of International Economics 66:

9 Week 12: November 11 - International Monetary Fund Thacker, Strom C The High Politics of IMF Lending World Politics 51(1): Gould, Erica R Money Talks: Supplementary Financiers and International Monetary Fund Conditionality. International Organization 57: Vreeland, James R Chapters 1, 4-7 from The IMF and Economic Development. Oatley, Thomas and Jason Yackee American Interests and IMF Lending. International Politics 41: Nooruddin, Irfan and Joel W. Simmons The Politics of Hard Choices: IMF Programs and Government Spending. International Organization 60: Mukherjee, Bumba and David Andrew Singer International Institutions and Domestic Compenstation: The IMF and the Politics of Capital Account Liberalization. American Journal of Political Science 54(1): Part V: Capital, Money and Exchange Rates Week 13: November 18 - International Capital Mobility and the Impossible Trinity Quinn, Dennis P. and Carla Inclan The Origins of Financial Opennesss: A Study of Current and Capital Account Liberalization. American Journal of Political Science 41(3): Simmons, Beth A The Internationalization of Capital, in Continuity and Change in Contemporary Capitalism Clark, William Roberts and Mark Hallerberg Mobile Capital, Domestic Institutions, and Electorally Induced Monetary and Fiscal Policy. American Political Science Review 94(2) Bearce, David H Monetary Divergence: Domestic Political Institutions and Monetary Autonomy-Exchange Rate Stability Tradeoff. Comparative Political Studies 35(2): Obstfeld, Maurice, Jay C. Shambaugh and Alan M. Taylor The Trilemma in History: Tradeoffs Among Exchange Rates, Monetary Policies, and Capital Mobility The Review of Economics and Statistics 87(3):

10 Week 14: November 25 Exchange Rate Regimes Bernhard, William T. and David Leblang Democratic Institutions and Exchange- Rate Commitments. International Organization 53(1): Simmons, Beth and Jens Hainmueller. Can Domestic Institutions Explain Exchange rate Regime Choice? The Political Economy of Monetary Institutions Reconsidered. Working Paper. Alesina, Alberto and Alexander Wagner. Choosing (and Reneging on) Exchange Rate Regimes. Working paper. Reinhart, Carmen M, and Kenneth S. Rogoff The Modern History of Exchange Rate Arrangements: A Reinterpretation. Quarterly Review of Economics 119(1): Levy-Yeyati, Eduardo, and Federico Sturzenegger Classifying Exchange Rate Regimes: Deeds vs. Words. European Economic Review 49: Plümper, Thomas and Vera E. Troeger Fear of Floating and the External Effects of Currency Unions. American Journal of Political Science 52(3): Week 15: December 2 Central Bank Independence Cukierman, Alex, Steven B. Webb and Bilin Neyapti Measuring the Independence of Central Banks and Its Effect on Policy Outcomes. World Bank Economic Review. Simmons, Beth A Rules of the Game: Central Bank Independence during the Interwar Years. International Organization 50(3): Bernhard, William T A Political Explanation of Variations in Central Bank Independence. American Political Science Review 92: Hallerberg, Mark Veto Players and the Choice of Monetary Institutions. International Organization 56(4): Broz, J. Lawrence Political System Transparency and Monetary Commitment Regimes. International Organization 56(4): Copelovitch, Mark S. and David Andrew Singer Financial Regulation, Monetary Policy, and Inflation in the Industrialized World. The Journal of Politics 70(3): Week 16: Final Exam Week, No Class Final draft of research design papers due by December 9, 4:30pm 10