Limited commercial integration between India and Pakistan or within much of the Middle East suggests that conflicting political interests between countries can have a detrimental effect on their economic relations. But rapidly growing economic ties between Mainland China and Taiwan show that commerce can also flourish even in the presence of very hostile relations. I explore this variation and hypothesize that the effects of international political conflict on trade are less severe in cases where internationalist economic interests have relatively strong political clout domestically. Simple quantitative tests on a sample of seventy-six countries over the years 1961 to 1992 are supportive; further evidence is provided via a brief case study of Mainland China-Taiwan relations.

States' decisions about regulating international capital movements are shaped in part by institutions and partisanship at the domestic level, but the effects of domestic-level variables are themselves contingent on the constraints imposed by the international system. We amend the vetoplayers hypothesis to account for the effects of international regimes on the political influence of domestic players in state decision-making. The history of changes in international financial regulations over the past four decades provides an ideal case to study the interaction of international regimes and domestic decision-making systems. We create a data set of all capital controls policy changes that 19 OECD parliamentary democracies made during the years 1951-1998. Using these new data, we find that states with a higher number of veto-player parties in government enact fewer capital controls policy changes. Furthermore, ideologically right-of-center governments in these industrialized countries are more likely than others to enact capital controls liberalizations. We also find, however, that the independent effects of these domestic-level variables disappear after the mid-1980s, when the systemic constraints imposed on individual states increased substantially.

While the determinants and effectiveness of economic sanctions have been the subject of a substantial and growing literature in international relations, much less attention has been given to economic engagement strategies, where a country deliberately expands economic ties with an adversary to change the target’s behavior. This article develops a theoretical framework that distinguishes between three types of engagement strategies: conditional policies that directly link economic ties to changed behavior in the target state; unconditional policies where economic interdependence is meant to act as a constraint on the behavior of the target state; and unconditional policies where economic interdependence is meant to effect a transformation in the foreign policy goals of the target state. The article presents several hypotheses concerning the conditions facilitating or hindering the successful implementation of these different strategies, and then examines engagement policies adopted by three East Asian states: South Korea, Taiwan, and mainland China. The cases offer preliminary confirmation of at least three of the hypotheses: conditional strategies are less likely to succeed when the initiating state is a democracy; transformative strategies are more likely to succeed when the target state is a democracy; and transformative strategies are more likely to succeed when a broad consensus exists in the initiating state.

China's rising power and increased global activism have attracted increasing attention, with particular focus on whether a stronger China is likely to be a revisionist or status quo state. Power transition theory highlights the potential for a dissatisfied rising power to challenge the existing international order, but it is difficult to evaluate whether a rising power is dissatisfied. Where Chinese leaders choose to travel can offer insights into whether China's behavior is more consistent with that of a revisionist or status quo state and into China's broader diplomatic priorities. We present a series of expectations concerning how the travel patterns of a challenger state are likely to differ from the travel patterns of a status quo state. Using a newly compiled data set, we then analyze the correlates of travel abroad by top Chinese leaders from 1998 to 2008. Our results are more consistent with a status quo conceptualization of China, though there are some important exceptions such as willingness to travel to rogue states. We also use travel data to test other hypotheses about Chinese foreign policy behavior.

It is widely believed that China’s growing links to the global economy are translating into increased Chinese political influence abroad. This article explores this possibility quantitatively by examining whether increased trade with China correlates with an increased willingness by countries to accommodate Chinese interests. I use newly collected data that capture cross-national variation in the willingness of individual countries to support Chinese government positions relating to Taiwan and Tibet, and China’s status as a market economy. I find that increased trade dependence on China is correlated with an increased likelihood of taking an accommodating stance on the economic issue (market economy status). But the evidence linking trade to an accommodating stance on the political issues is more ambiguous.