i understand it talks about the interplay between politics and economy but what is it i should look for when i am talking about political economy. What are its measurable indicators and how do you measure them?
There are several variables you can use such as economic freedom, political freedom, political violence, political risk, corruption etc. You can get these data from Freedom house ( data for many variable available freely), PRS group (Political risk data), Corruption data available from Transparency International.