This paper examines hegemonic stability theory, the concept in international relations that an assertive hegemon can act as a stabilizing force in the international system.
A hegemon is a state that has the capacity and the will to lead and overpower other states in the international system. Krasner defines two states to be the hegemons, especially when looked from an international political economy perspective: Krasner uses a systemic approach to empirically test this theory, and his main hypothesis is that the presence of a hegemonic power in the international system creates incentives for other states to accept the openness of trade; thus, the world becomes more open and globalized in the presence of a hegemonic power.
He gives examples of various international systems and decides that there are two cases in which free trade would be beneficial: He goes on to test this argument in his article on Hegemonic stability thesis Power and the Structure of International Trade.
Krasner tests his theory for different time periods, and then we see that this theory "fails;" although the theory is valid for the begininng of the era of first globalizationBritish hegemonic power falling and post WWII erait is not for the other periods tested.
Thus, Krasner amends this theory, arguing that there is a time lag on the dependent variable. In other words, it might take some time for the hegemon to realize the benefits of globalization and open trade and its role in promotng them.
Problems with Hegemonic Stability Theory Although Hegemonic Stability Theory is one of the most useful tools to identify and analyze cooperation between states in the international systems, the theory has shortcomings.
As explained above the dependent variable in this theory is economic openness.
Krasner discusses how tariff levels would be the most obvious and practical way to measure economic openness but identifies the difficulty in this task.
First, it should be noted that tariff levels are subjective due to the difference in price elasticity between various products.
Tariff levels are not the only way to control barriers to trade. Differing tax rates, labor and social costs, and exchange rates can act as indirect tariffs that give one state a trading advantage over other states.
The issue with the independent variable is that during his paper Krasner switches from one interpretation of the variable to another. Krasner at times identifies the independent variable as the distribution of power, giving it the possibility of having many intricate levels.
However, at other times he identifies this variable simply as whether or not there is a hegemonic power present, essentially turning the independent variable into a binary variable. Another lag may exist on a social level. The state entity may take time to realize that it wields the power on an international scale, but just as importantly, the citizens of the state may not notice the power they wield.
Alternatively, citizens may think their state wields more power on an international scale, or that their power is still ascending on an international scale while in reality it may have stalled or begun to decline.This thesis will attempt to test only one - hegemonic stability theory.
Hegemonic stability theory holds that regimes are formed and maintained in the presence of a strong hegemon. May 28, · By: Jesse Hubbard Abstract: This paper examines hegemonic stability theory, the concept in international relations that an assertive hegemon can act as a stabilizing force in the international system.
Through a quantitative analysis looking at both American and British hegemonic governance, it was discovered that in both cases there is a strong negative association between.
Hegemonic Stability Theory Essay. Hegemonic Stability Theory had its genesis to The Great Depression that hit United States in - Hegemonic Stability Theory Essay introduction. Charles Kindleberger is considered to be the inventor of this theory.
Hegemonic Stability Theory Hegemonic Stability Theory is a theory of economics and political science which argues that the international financial system is more likely to be stable when a single country is the dominant economic power. The theory of hegemonic stability, as applied to the world political economy, defines hegemony as preponderance of material resources.
Resources in this sense; means, control over raw materials, sources of capital, markets and competitive advantages in . KEYWORDS: Theory Of Hegemonic Stability, Hegemonic Power, Great Britain, The United States Of America, International Institution, International Stability.
INTRODUCTION The Theory of Hegemonic Stability is important in understanding the stability and instability in the international political economy.