Economic Diplomacy and Economic Security

Abstract

This chapter investigates how economic diplomacy can be used to generate and increase economic security. The first section sets out a definition for economic diplomacy, uncovers some of the historical roots and discusses empirical findings on the trade - conflict - cooperation relationships. The second section deals with the impact of the process of globalisation and its relevance for economic diplomacy and commercial policy. In particular we investigate whether the scope and efficacy of public activities have been influenced by the assumed reduction of distance as a barrier to trade. The third section focuses on new dimensions of and recent trends in (the use of) economic diplomacy. We will pay special attention to the emergence of new actors in the global game and will analyse how this alters the rules of the game. The fourth section deals with the requirements of economic security and discusses the issue of energy security as a special case. The final section draws conclusions and identifies issues for further research.

Keywords: economic diplomacy, globalization, energy security

JEL Classification: F5, F59, Q34