Political Economy can be generally defined as a study drawing upon branches of economics. Political and law aiming to explain clearly the existing relation between different countries of the world. The area of research combines economics and different related fields of study. Political Economy endeavors to understand the policies, both domestic and international, adopted by governments all over the world.
Though this branch of ‘’social philosophy’’ as many would call it, has been replaced by term ‘’economics’’ using axiomatic principles and fundamental mathematical techniques to understand the functioning of the economy as a whole, ‘’ Political Economy’’ remains one of the essential tools for analyzing trends in the current global economy.
Political Economy can also be defined as an academic discipline that deals with the relationship between the individual and the society and between the markets and the state, using techniques from economics, politics and sociology. Yet another definition of political Economy is that it is an interdisciplinary branch of study which combines branches of economics, politics and law in order to understand how political institutions, its environment and capitalism influence each other.