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University of Konstanz Summer term 2020

Prof. Dr. G. Schneider
Department of Politics and Monday 15:15 – 16:45
Public Administration Until further notice virtual sessions
(D432 if class room meetings become possible)

Office Hours
Monday, 14:00 – 15:00 (skype)
(You need to register on Ilias or via
[email protected])

International Political Economy and

International Organization (MA, PhD)

COURSE OBJECTIVES

International Political Economy and International Organization are two of the main subfields in
International Relations. They study how states, international institutions and markets affect the
development of states and how states respond uniltaterally or multilaterally to major economic and
political challenges. IPE particularly analyzes the interactions of governments, businesses, and
ordinary people and enables us to understand some major global and regional problems, while IO
deals with the role of international institutions in addressing these and other concerns. This seminar
builds on the Basic Seminar IREI (taught in the Winter term) and introduces participants to the rich
literature on IPE and international governance as the eroding sovereignty of nation-states in an
interdependent world is accompanied by calls for stronger international institutions. The seminar will
survey the literature in international political economy with a special emphasis on economic
development and interdependence. We will also assess the impact that economic downturns as well as
financial crises have. After the students became familiar in detail with the European Union last
semester, we will focus on other regional and global organizations, such as the Bretton Woods
institutions and the World Trade Organization.

COURSE REQUIREMENTS

This is a reading course that allows the participants to become acquainted with state of the art
research in IPE and IO. Students are expected to participate in the class in an active manner.
This means that the do all the assigned readings and other tasks prior to the meeting. This
means not just skimming the material but reading it carefully and being clear about the
argument being made. Please make sure that you are able to complete the readings and meet
the deadlines for the assignments:
1. Once throughout the term each student will be responsible for introducing the topic and for
presenting one of the and leading the discussion (20% of the grade).
2. Two eight-page review essay or a research paper on a topic related to the seminar (60 % of
the grade). The deadline for the first eight page review will be June 29, 5 pm. You need to
submit the second review essay as well as the research paper on September 15 (12 pm) at
latest.
2. Class discussion (20%).
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As we will most likely not meet in the class room until late in June or even not at all during the term,
please respect the following additional rules.

1. Those who are responsible for a session need to upload all material until 1 pm on the day the
session takes place. This material should include slides plus the questions that we should
discuss together. Please send you material to me via email, too.
2. Participants should read all this material until 3:45 pm of the meeting day.
3. We will have a meeting via zoom or webex. You will receive an invitation from us in due
course (https://uni-konstanz.webex.com/).
4. The virtual meetings will last one hour, starting at 3.45 pm on each Monday.
5. Your presentations will start in early May. Please sign up via [email protected]
with a list of the three most preferred topics.
6. The sessions start out with a ten minute summary of the student in charge of the session and a
twenty minute discussion of the questions that have been raised.
7. The remainder of the virtual session will focus on the assigned research articles. Please take a
look at my questions to you, too.
8. It is possible that there will be a presentation of a guest lecturer (Prof. Tal Sadeh, Tel Aviv
University) in the last session. Hence, do not reserve this slot.

COURSE OUTLINE

April 27

INTRODUCTION TO IPE/ORGANIZATION

Deaton, Angus. (2016). Measuring and Understanding Behavior, Welfare, and Poverty. American
Economic Review 106 (6): 1221-1243.

Lake, David A. (2006) International political economy: A maturing interdiscipline, In The Oxford
Handbook of Political Economy, Eds. Weingast, Barry R. and Wittman, Donald A. 757–77.
Oxford/New York: Oxford University Press.

May 04

DEVELOPMENT

Acemoglu, Daron, Francisco A. Gallego, James A. Robinson. (2014). Institutions, Human Capital,
and Development. Annual Review of Economics 2014 6:1, 875-912

Olson, Mancur. (1993) Dictatorship, Democracy, and Development. American Political Science
Review 87(3): 567-576.

Optional:

Becker, Sascha and Ludger Woessmann. (2007). “Was Weber Wrong? A Human Capital Theory of
Protestant Economic History.” Quarterly Journal of Economics 124:531–96.
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Acemoglu, Daron, Davide Cantoni, Simon Johnson, and James A. Robinson. (2011). "The
Consequences of Radical Reform: The French Revolution." American Economic Review 101(7):
3286–3307.

Doucouliagos, Hristos and Mehmet. Ulubasoglu. (2008). Democracy and Economic Growth: A
Meta-Analysis. American Journal of Political Science 52(1): 61-83.

Burgess, Robin; Jedwab, Remi; Miguel, Edward; Morjaria, Ameet; Miquel, Gerard Padró i.
(2015) The Value of Democracy: Evidence from Road Building in Kenya. American Economic
Review 105(6): 1817-1851.

Michalopoulos, Stelios and Elias Papaioannou (2016) The long-run effects of the scramble for
Africa. American Economic Review 106(7): 1802–1848.

Freeman, John R., and Dennis P. Quinn (2012) The Economic Origins of Democracy Reconsidered.
American Political Science Review 106(1): 58-80.

May 11

INEQUALITY, POVERTY, POLARIZATION

Piketty, Thomas. (2015) Putting Distribution Back at the Center of Economics: Reflections on
Capital in the Twenty-First Century. Journal of Economic Perspectives 29(1): 67-88.

Zucman, Gabriel. (2019). Global Wealth Inequality. Annual Review of Economics (in print)

Song, Jae, David J. Price, Fatih Guvenen, Nicholas Bloom, and Till von Wachter (2019) Firming
Up Inequality. Quarterly Journal of Economics 134(1): 1–50.

Optional:

Dustmann, Christian, Johannes Ludsteck and Uta Schönberg (2009) Revisiting the German Wage
Structure. Quarterly Journal of Economics 124(2):843-881.

David Card, Jörg Heining, Patrick Kline (2013) Workplace Heterogeneity and the Rise of West
German Wage Inequality. Quarterly Journal of Economics 128(3): 967-1015

David H. Autor, David Dorn (2013). The Growth of Low-Skill Service Jobs and the Polarization of
the US Labor Market. American Economic Review 103(5): 1553-1597.

Emmanuel Saez, Gabriel Zucman (2016); Wealth Inequality in the United States since 1913:
Evidence from Capitalized Income Tax Data . Quarterly Journal of Economics 131 (2): 519-578.

May 18

INTERNATIONAL TRADE, PROTECTIONISM AND THE WTO

Autor, David H., Dorn, David, and Hanson, Gordon H. (2016). The China Shock: Learning from
Labor Market Adjustment to Large Changes in Trade. Annual Review of Economics 8: 205–40.
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Melitz, Marc, and Daniel Trefler. (2012). “Gains from Trade when Firms Matter.” Journal of
Economic Perspectives 26 (2).

Jensen, J. Bradford, Dennis P. Quinn, and Stephen Weymouth (2017). Winners and Losers in
International Trade: The Effects on U.S. Presidential Voting. International Organization 71(3): 423-
457.

Goldstein, Judith L. (2017) Trading in the Twenty-First Century: Is There a Role for the World
Trade Organization? Annual Review of Political Science 20.

Optional:

Osgood, Ian (2018). Globalizing the Supply Chain: Firm and Industrial Support for US Trade
Agreements. International Organization, 1-30.

Mutz, D., & Kim, E. (2017). The Impact of In-group Favoritism on Trade Preferences. International
Organization, 71(4), 827-850.

Walter, Stefanie (2017). Globalization and the Demand-Side of Politics: How Globalization Shapes
Labor Market Risk Perceptions and Policy Preferences. Political Science Research and Methods 5(1):
55-80.

Autor, David, David Dorn, Gordon Hanson, and Kaveh Majlesi (2016). Importing Political
Polarization? The Electoral Consequences of Rising Trade Exposure. NBERWorking Paper 22637.

Bechtel, Michael M. and Thomas Sattler. (2015) What Is Litigation in the World Trade
Organization Worth? International Organization 69(2): 375-403.

May 25

INTERNATIONAL MONETARY AND FINANCIAL COOPERATION

Jeffry Frieden (2016) The Governance of International Finance. Annual Review of Political Science
19:33-48.

Sonal S. Pandya (2016) Political Economy of Foreign Direct Investment: Globalized Production in
the 21st Century. Annual Review of Political Science 19:455-475.

Carter, David, Rachel Wellhausen, and Paul Huth. (2019) International Law,Territorial Disputes,
and Foreign Direct Investment. International Studies Quarterly 63(1): 58-71.

Optional:

Allee Todd, Peinhardt, Clint. (2014). Evaluating three explanations for the design of bilateral
investment treaties. World Politics 66(1):47–87.

Büthe, Tim and Helen V. Milner. (2014). Foreign direct investment and institutional diversity in
trade agreements: credibility, commitment, and economic flows in the developing world, 1971–2007.
World Politics 66(1):88–122.
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Jensen Nathan M. (2012). Fiscal policy and the firm: Do low corporate tax rates attract multinational
corporations? Comparative Political Studies 45(8):1004–26.

Wellhausen, Rachel L. (2015) Investor–state disputes: When can governments break contracts?
Journal of Conflict Resolution 59(2):239–61.

June 01: No Class (Public Holiday)

June 8

THE IMF AND THE WORLD BANK

Kentikelenis, Alexander E., Stubbs, Thomas H., and King, Lawrence P. (2016). IMF
conditionality and development policy space, 1985–2014. Review of International Political Economy
23(4): 543-582.

Dreher, Axel, Jan-Egbert Sturm, and James Raymond Vreeland. (2015) Politics and IMF
Conditionality. Journal of Conflict Resolution 59(1): 120-148.

Optional:

Stubbs, Thomas, Bernhard Reinsberg, Alexander Kentikelenis & Lawrence King. 2020 . How to
evaluate the effects of IMF conditionality. Review of International Organizations 15 (1): 29–73.

Reinsberg, B., Michaelowa, K., & Knack, S. (2017). Which Donors, Which Funds? Bilateral
Donors' Choice of Multilateral Funds at the World Bank. International Organization, 71(4), 767-802.
doi:10.1017/S0020818317000340

Blanton, Robert G, Early, Brian and Peksen, Dursun. (2018). Out of the shadows or into the dark?
Economic .openness, IMF programs, and the growth of shadow economies. Review of International
Organizations 13.

Copelovitch, Mark (2010). Master or Servant? Agency Slack and the Politics of IMF Lending.
International Studies Quarterly 54 (1): 49–77.

June 15

FINANCIAL CRISES: CAUSES AND CONSEQUENCES

Jeffry Frieden, Stefanie Walter (2017) Understanding the Political Economy of the Eurozone Crisis:
A Political Scientist’s Guide. Annual Review of Political Science 20

Lundgren, Magnus, Stefanie Bailer, Lisa Maria Dellmuth, Jonas TallbergandSilvana Tarlea
(2019). Bargaining Success in the Reform of the Eurozone. European Union Politics 20(1)

Optional

Alt, James, David Dreyer Lassen and Joachim Wehner (2014) It Isn't Just about Greece: Domestic
Politics, Transparency and Fiscal Gimmickry in Europe. British Journal of Political Science, 44(4):
707-716.
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Baerg, Nicole Rae and Mark Hallerberg. (2016) Explaining Instability in the Stability and Growth
Pact: The Contribution of Member State Power and Euroskepticism to the Euro Crisis. Comparative
Political Studies 49(7): 968–1009.

Federica Genovese, Gerald Schneider, and Pia Wassmann (2016). The Eurotower strikes back:
Crises, adjustments and Europe’s austerity protests. Comparative Political Studies 49(7): 939-967.

Jordà, Oscar and Taylor, Alan M. (2016). The time for austerity: estimating the average treatment
effect of fiscal policy. Economic Journal 126(590): 219–255.

Hübscher, Evelyne and Thomas Sattler (2017). Fiscal Consolidation under Electoral Risk.
European Journal of Political Research 57(1):151-168.

June 22

FOREIGN AID

Qian, Nancy (2015) Making Progress on Foreign Aid. Annual Review of Economics 7: 277-308.

Briggs, Ryan C. (2017). Does foreign aid target the poorest? International Organization 71(1), 187–
206.

Optional:

Findley, Michael G., Adam S. Harris, Helen V. Milner, and Daniel L. Nielson. (2017). Who
Controls Foreign Aid? Elite versus Public Perceptions of Donor Influence in Aid-Dependent Uganda.
International Organization 71(4): 633-663.

Dietrich, Simone (2016). Donor Political Economies and the Pursuit of Aid Effectiveness.
International Organization 70(1): 65-102.

Pierre-Oliver Gourinchas and Oliver Jeanne. (2013). Capital Flows to Developing Countries: The
Allocation Puzzle. Review of Economic Studies 80 (4): 1484-1515.

Blattman C, Jamison J, Sheridan M. (2016). Reducing crime and violence: experimental evidence
from cognitive behavioral therapy in Liberia. American Economic Review 107(4): 1165–206

Gutting R, Steinwand MC. (2017). Donor fragmentation, aid shocks, and violent political conflict.
Journal of Conflict Resolution. 61(3): 643–70

June 29

NATURAL RESOURCES AND DEVELOPMENT: THE RESOURCE CURSE

Ross, Michael L. (2015). What Have We Learned about the Resource Curse? Annual Review of
Political Science 18: 239-259.

Wegenast, Tim, Mario Krauser, Georg Strüver and Juliane Giesen. (2019). At Africa’s Expense?
Disaggregating the Employment Effects of Chinese Mining Operations in Sub-Saharan Africa. World
Development, 118: 39–51.
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Optional:

Buonanno, Paolo, Durante, Ruben, Prarolo, Giovanni. and Vanin, Paolo (2015) Poor institutions,
rich mines: resource curse in the origins of the Sicilian mafia. Economic Journal 125(586): F175–202.

Andersen, Jørgen J. and Michael L. Ross. (2014). The Big Oil Change: a Closer Look at the Haber-
Menaldo Analysis. Comparative Political Studies 47(7):933–1021.

Nicolas Berman, Mathieu Couttenier, Dominic Rohner and Mathias Thoenig. 2017. This Mine is
Mine! How Minerals Fuel Conflicts in Africa. American Economic Review

Andreas Kotsadam, Gudrun Østby, Siri Aas Rustad (2017). Structural change and wife abuse: A
disaggregated study of mineral mining and domestic violence in sub-Saharan Africa, 1999–2013.
Political Geography 56: 53-65.

July 06

THE POLITICS OF GLOBALIZATION

Nita Rudra and Jennifer L. Tobin (2017) Globalization and Poverty. Annual Review of Political
Science 20

de Soysa, Indra, De Soysa, Ann Kristin. (2018) Do Globalization & Free Markets Drive Obesity
Among Children and Youth? An Empirical Analysis, 1990-2013. International Interactions 44(1): 88-
106.

Optional

Stephanie J. Rickard. (2012) Welfare versus Subsidies: Governmental Spending Decisions in an Era
of Globalization. The Journal of Politics 74(4): 1171-1183.

Rudra, Nita ( 2011) Openness and the Politics of Potable water. Comparative Political Studies, 44(6),
771-803.

Eric Neumayer and Indra de Soysa (2011) Globalization and the Empowerment of Women: An
Analysis of Spatial Dependence via Trade and Foreign Direct Investment. World Development 39(7):
1065–1075.

July 13

MIGRATION

Fitzgerald, J., Leblang, D., & Teets, J. (2014). Defying the Law of Gravity: The Political Economy
of International Migration. World Politics, 66(3), 406-445.

Christian Dustmann, Francesco Fasani, Tommaso Frattini, Luigi Minale and Uta Schönberg
(2017). On the Economics and Politics of Refugee Migration. Economic Policy 32(91), 497-550.
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Optional

Nazli Avdan Christopher F. Gelpi. (2017). Do Good Fences Make Good Neighbors? Border Barriers
and the Transnational Flow of Terrorist Violence. International Studies Quarterly 61(1): 14–27.

Margaret E. Peters. (2014). Trade, Foreign Direct Investment, and Immigration Policy Making in the
United States. International Organization 68(4)

Hainmueller, Jens, Duncan Lawrence, Justin Gest, Michael Hotard, Rey Koslowski, David D.
Laitin. 2018. Barriers to citizenship for immigrants. Proceedings of the National Academy of Sciences