A Theory of Economic Coercion and Fragmentation
Journal: National Bureau of Economic Research
Year: 2024

Hegemonic powers, like the United States and China, exert influence on other countries by threatening the suspension or alteration of financial and trade relationships.Mechanisms that generate gains from integration, such as external economies of scale and specialization, also increase the hegemon's power because in equilibrium they make other relationships poor substitutes for those with a global hegemon.Other countries can implement economic security policies to shape their economies in order