Applications for International Relations Theory

This chapter further extends the theoretical framework established in the prior chapters of this book to develop a set of hypotheses relating to the political economy of international relations. This chapter predicts that in both democratic and nondemocratic states, the number of competing economic elites is related to the conduct of foreign policy, specifically the degree to which foreign policy actions and objectives are oriented around the provision of private or public goods. In states where the number of economic elites is smaller, leaders are more likely to be incentivized to pursue private goods in foreign policy engagements, for example by securing market access for particular firms. In states where the number of economic elites is greater, leaders are more likely to be incentivized to pursue public goods in foreign policy engagements, for example by supporting broad trade agreements focused on market access. These propositions are explored using a qualitative case analysis comparing US and Chinese foreign policy objectives.