Center of Political Economy

The aim of the Center is to bring together researchers and academics in the field of political economy (comparative and international). The Center’s researchers focus on the following research areas:

• The political economy of finance (especially Fintech and exchange rates)
• The political economy of growth patterns and economic transformation (with a particular focus on the Baltics)
• The political economy of defence spending
• Reforms, public opinion and economic behaviour

The Center’s researchers use a variety of methodologies: qualitative case studies, quantitative and causal analyses, and experimental methods.

The Center’s main activities:

• Regular seminars
• Joint research projects
• Conferences and public seminars
• International networking and contacts with other VU faculties and universities
• Sharing good practice in teaching political economy and economics courses, mentoring of the Politics and Economics module

Publications by Center members:

Research on the political economy of finance

Vytautas Kuokštis, Simonas Algirdas Spurga. In press. “The Political Economy of External (Im)Balances: The Interaction Between Exchange Rate Regimes and Labor Market Institutions”. Comparative Economic Studies.

Ringa Raudla, Egert Juuse, Vytautas Kuokštis, Aleksandrs Cepilovs, Matti Ylönen. 2025. “Drivers of National FinTech Policy Evolution in the Baltic States: The Role of Policy Learning and Institutions”. Policy & Politics 53(1), 87–108.

Ringa Raudla, Egert Juuse, Vytautas Kuokštis, Aleksandrs Cepilovs, James W. Douglas. 2024. “Regulatory Sandboxes and Innovation Hubs for FinTech: Experiences of the Baltic States”. European Journal of Law and Economics, early view.

Ringa Raudla, Egert Juuse, Vytautas Kuokštis, Aleksandrs Cepilovs, Vytenis Čipinys, Matti Ylönen. 2024. “To Sandbox or Not to Sandbox? Diverging Strategies of Regulatory Responses to FinTech in the Baltic States”. Regulation & Governance, early view.

Vytautas Kuokštis, Muhammad Asali, Simonas Algirdas Spurga. 2022. “Labor Market Flexibility and Exchange Rate Regimes”. European Journal of Political Economy 75(C).

Ramūnas Vilpišauskas. 2022. “The Baltic States in the Economic and Monetary Union: Standing in the Shadow of Germany or Helping to Counterbalance the ‘South’?”. German Politics 31(2), 263–280.

Vytautas Kuokštis, Magnus Feldmann. 2021. “The Baltic States and the Eurozone”. In: Krisztina Arató, Boglárka Koller, Anita Pelle (eds.), The Political Economy of the Eurozone in East Central Europe: Why In, Why Out? Routledge.

Vytautas Kuokštis, Simonas Algirdas Spurga, Ramūnas Vilpišauskas. 2021. “Lietuvos narystė euro zonoje: patirtis ir dilemos”. Kn: Gediminas Vitkus (sud.), Lietuvos narystė Europos Sąjungoje: patirtys, tendencijos ir refleksijos. Vilnius: Vilniaus universiteto leidykla.

The political economy of defence

Vytautas Kuokštis, Ringailė Kuokštytė. 2025. “A Spatiotemporal Analysis of NATO Member States’ Defense Spending: How Much Do Allies Actually Free Ride?”. Political Science Research and Methods 13(2), 497–504.

Vytautas Kuokštis, Jordan Becker, Ringailė Kuokštytė. 2023. “The Political Economy of Transatlantic Security – A Policy Perspective”. The Economists’ Voice 20(1), 55–77.

Vytautas Kuokštis, Ringailė Kuokštytė, Ieva Miklaševskaja. 2021. “Determinants of Defence Spending: A TSCS Analysis of EU Member States”. European Security 30(2), 197–217.

The political economy of growth patterns and economic transformation (with a particular focus on the Baltics)

Simonas Algirdas Spurga. In press. “The Baltic Growth Model: Balanced Growth Under the EMU Playbook”. Competition & Change.

Marius Kalanta. 2024. “The Political Economy of Economic Upgrading in Central Eastern Europe”. New Political Economy 29(5), 661–677.

Marius Kalanta. 2024. “Growth Model Change in Emerging Economies: Sectorial Loci of Growth and Politics”. Socio-Economic Review 22(4), 1783–1809.

Vytautas Kuokštis, Ringailė Kuokštytė. 2023. “How Institutions Moderated the Pandemic’s Economic Impact in EU Member States”. JCMS: Journal of Common Market Studies 61(2), 503–525.

Marius Kalanta. 2023. “Middle-Income Trap and the Baltic States: Common Challenges, Different Strategies”. Politologija 2(110), 8–47.

Vytautas Kuokštis, Ramūnas Vilpišauskas. 2022. “Economic Adaptability in the Absence of Democratic Corporatism: Explaining Lithuania’s Export Performance”. Politologija 108(4), 116–157.

Reforms, public opinion and economic behaviour

Denis Ivanov. 2024. „Left authoritarianism and positional shifts of populist parties in Central and Eastern Europe.“ East European Politics 40(3), 447-472.

Gaygysyz Ashyrov ir Denis Ivanov. 2024. „Mega‐events and human rights violations: Empirical evidence from the long‐term perspective.“ Scottish Journal of Political Economy 71(2), 175-196.

Gábor ir Kutasi ir Denis Ivanov. 2023. „Macroeconomic populism in the Baltics: Real effective exchange rate, current account deficit and the economic consequences of populist rule.” Economic Policies of Populist Leaders. Routledge. 194-213.

Denis Ivanov. 2023. „Economic insecurity, Institutional trust and populist voting across Europe.“ Comparative Economic Studies 65(3), 461-482.

Vytautas Kuokštis, Mažvydas Jastramskis, Matas Baltrukevičius. 2021. “Retrospective Voting in Central and Eastern Europe: Hyper-Accountability, Corruption or Socio-Economic Inequality?”. Party Politics 27(4), 667–679.

Ongoing research projects

A Quantitative and Causal Analysis of NATO Allies’ Defence Spending: A Comprehensive Investigation into the Free Riding Phenomenon (lead. Kuokštytė, participants Kuokštis, Ivanov, Indilas)

Measuring the effect of information on fairness perceptions of a carbon tax and its acceptability in an experimental setting (participants Laura Galdikienė and Aušrinė Diržinskaitė-Kazlauskienė)

Understanding FinTech Regulatory Sandbox Development in Europe (FIRSA) (postdoctoctoral internship fellow Sanchez, supervisor Kuokštis) ERA postdoc

The Hidden Costs of Corruption: Examining its Impact on Socio-Economic Inequality in Within and Between-country Dimensions (postdoctoctoral internship fellow Ivanov, supervisor Kuokštis) LRC postdoc

Past research projects

Labor Market Institutions and the Political Economy of Exchange Rates (leader Kuokštis, participant Muhammad Asali)

Political factors of the middle-income trap in the Baltic States (TRAPPOLI) (postdoctoral internship fellow Kalanta, supervisor Kuokštis)

Disertations in preparation

Simonas Algirdas Spurga, “Role of Institutions in Currency Regimes: Labor Market Regulations and Growth Models”

Aušrinė Diržinskaitė, “Will taxes save the planet? Rationality, framing and behaviour in tackling climate change”

Vainius Indilas, “Transatlantic Privacy Debates: The Role of Rights, Security, and Economic Interests in Data Protection Policy”