REGIONAL INTEGRATION AGREEMENTS 2400-EM3RUI
The specific student learning outcomes and experiences are:
• to understand the development and workings of the EC/EU and other PTAs;
• to become familiar with the key literature on economic integration.
The course will be structured in 4 Sections. For each Section, links to internet-based resources will be added below as the academic year progresses.
1. Descriptive background
What is economic integration
• Definition and significance
• The stages of economic integration
Preferential Trading Areas in world economy
• WTO rules
• Preferential Trade Agreements and the Multilateral Trade System
2. Product-market integration in a neoclassical world
• Analysis of discriminatory liberalization
• Analysis of a free trade agreements
• Analysis of a custom union
• Empirical evidence
• Creation and diversion effects in empirical studies
• Estimated Effects of Trading Blocks
3. Market Size and Scale Effects
“New Trade Theory”: Increasing Returns and Imperfect Competition
• Monopoly, international duopoly, and the gains from trade through increasing competition
• Monopolistic competition and the gains from trade through increasing product variety
“New Economic Geography”: Externalities and Agglomeration Economies
• The "core-periphery" model
• Welfare effects and multiple locations
• Empirical evidence on location patterns in the European Union
Terms of Trade Effects
4. Microeconomics of Factor Market Integration
• Essential theory
• Single European Market
• Empirical studies
• The 1996 Review of the Single European Market programme
• Evidence of the effects of the SEM since 1996
Type of course
Prerequisites (description)
Course coordinators
Learning outcomes
Lectire intends to familiarize students with:
• the processes occurring in the framework of the world trade liberalization
• the main theories of economic integration
• models that can serve as a basis for analyzing the impact of economic integration
• methods of estimating these effects and the results of selected empirical studies
It is expected that through the lecture, students become familiar with:
• the most important literature in the field of economic integration
• will have the grounds and arguments for substantive discussion on the meaning of regional economic integration.
• be able to identify the benefits and risks of regionalism
• be able to objectively relate to different concepts of integration
SW01, SW02, SW03, SW04, SU01, SU02, SU03, SU04, SU05, SU06, SU07, SK01, SK02, SK03
Assessment criteria
Lecture will end with an oral examination. Students will receive the 2 open questions . In addition, students prepare presentation based on selected article. The assessment will be issued only on the exam and presentation.
Bibliography
Baldwin Richard, Charles Wyplosz. 2004. "Economics of European Integration". McGrawHill
Czarczyńska, K. Śledziewska 2002 "Teoria integracji europejskiej",
Jovanovic M. (2006) “The Economics of International Integration” E. Elgar
Molle, Willem (2001) The Economics of European Integration, 4th edition, Ashgate
Pomfret R. (2003) “Economic Analysis of Regional Trading Arrangements” E. Elgar
Freund C. (2007) “The WTO and Reciprocal Preferential Trading Agreements” E. Elgar
Baldwin R., Low P.( 2009), Multilateralizing Regionalism: Chalanges for the Global Trading System, WTO
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: