Methods of economic statecraft: A typology and an agenda for research

Abstract

This article develops a comprehensive typology of economic statecraft methods that contributes to a deeper understanding of how states wield power in the 21st century. Despite extensive scholarships on economic statecraft and geoeconomics, existing frameworks lack a unified structure that captures the full range of methods available to states. We propose a novel typology that distinguishes between two dimensions – statecraft venues (domestic, bilateral, network, and international economic organizations) and power use (accumulation and exercise) – to organize economic statecraft methods at a mid-level of abstraction between techniques and strategies. This framework integrates insights from existing literature and contemporary policy and security practices to derive a parsimonious yet granular classification of 17 distinct methods, including some that are underexplored in existing scholarships but in focus among national security and intelligence services. It also identifies generalizable conditions under which states can employ different methods, highlighting that while many states can accumulate and possibly exercise power through domestic and bilateral venues, only a few alone possess the structural advantages needed to apply economic statecraft through network and international economic organization venues. The typology provides analytical tools for scholars and policymakers to evaluate states’ capabilities and vulnerabilities in a globalized economy but also reveals important areas of future research to advance the economic statecraft literature and inform policymaking.