Economic Development in Global Economy

Course Coordinator: Dr Terence Shum, BSc (Essex), MSc (LSE), MSSc (CityU), PhD (CityU)

Aims
This course aims to examine the causes and consequences of globalization from an economic perspective, and how the world is integrated through trade and financial transactions. It discusses the patterns of international trade, why nations trade, what they trade, and the consequences of their trade. Then, it analyses the determinants and implementations of different trade and investment policies, the motives for countries to restrict international trade, and the welfare implications of those trade policies. This course also examines a couple of other topics as they relate to the developing world: primary education and public accountability. Real world issues and policies pertaining to globalization, including the effects of trade on economic growth and income inequality, multinationals, foreign direct investment, WTO, IMF and different exchange rate regimes, will be discussed throughout the course.

Contents
The course covers the following topics:

• Globalization: Concepts and theories
• Globalization, poverty and inequality
• Economic globalization: The Heckscher-Ohlin model
• Economic globalization: The standard trade model
• External economies of scale and the international location of production
• The instruments of trade policy
• The analysis of trade policy
• Trade policy in developing countries
• Inequality and poverty
• The impact of population, education, and health on economic development
• Foreign debt, foreign aid and foreign direct investment
• Current international and development issues and selected topics in development economics

Assessment
There will be one assignment, one mid-term test and one individual term paper, altogether accounting for 50% of the total course score. The final examination will account for the remaining 50%. Students are required to submit assignments via the Online Learning Environment (OLE).

Set Book(s)
Krugman, P R, Obstfeld, M and Melitz, M J (2015) International Economics: Theory and Policy, 10th edn, Pearson.

Feenstra, R C and Taylor, A M (2014) International Trade, 3rd edn, Worth Publishers Inc.

Aghion, P and Howitt, P (2009) The Economics of Growth, Cambridge, MA: MIT Press.

Barro, R and Sala-I-Martin, X (2004) Economic Growth, Cambridge, MIT Press.