This article examines how rising geopolitical risk is reshaping international economic law (IEL) and proposes an empirical framework for institutional design. Drawing on recent empirical studies, it demonstrates that spikes in geopolitical risk depress international trade, particularly in services, energy, and agriculture, and reduce foreign direct investment, especially in states with weak governance and regulatory quality. Building on these findings, it argues that IEL requires more predictable rules, more tailored sectoral disciplines, and more transparent investment governance to manage the systemic pressures created by heightened geopolitical risk. In doing so, the article contributes to the “empirical turn” in IEL by linking quantitative measurement of geopolitical risk with normative debates on the future architecture of trade and investment rules.

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Geopolitical Risk and International Economic Law: An Empirical Framework for Designing Resilient Trade and Investment Rules

  • Yoshimichi Ishikawa

摘要

This article examines how rising geopolitical risk is reshaping international economic law (IEL) and proposes an empirical framework for institutional design. Drawing on recent empirical studies, it demonstrates that spikes in geopolitical risk depress international trade, particularly in services, energy, and agriculture, and reduce foreign direct investment, especially in states with weak governance and regulatory quality. Building on these findings, it argues that IEL requires more predictable rules, more tailored sectoral disciplines, and more transparent investment governance to manage the systemic pressures created by heightened geopolitical risk. In doing so, the article contributes to the “empirical turn” in IEL by linking quantitative measurement of geopolitical risk with normative debates on the future architecture of trade and investment rules.