Course Information Undergraduate prospectus

Political Economy of International Development and Finance

Course summary

Course code: ECON1139
Level: 6
Credits: 30
School: Business Faculty
Department: International Bus and Economics
Course Coordinator(s): Maria Nikolaidi

Specification

Aims

To present the key assumptions, concepts and methods of the major theories of Political
Economy
 To compare the different theories and their policy implications
 To introduce current issues related to the production process, economic growth, and
international division of labour and the empirical evidence on international trade.
 To critically evaluate the theories and applications of development models.
 To provide appreciation of the magnitude and complexities of the development challenges
in the developing countries.
 To critically evaluate the rationale and performance of global financial institutions.
 To introduce theories of economic crises with a particular focus on the Great Recession
2008‐13
 To critically discuss alternative models of decision making in different economic systems
such as markets, plan, and centralized vs. participatory mechanisms

Learning outcomes

On successful completion of this course a student will be able to:
Learning
Outcome
1 Develop a systematic knowledge and understanding of economics of globalization,
internationalization of production and different trade theories.
2 Critically evaluate theories and institutions of the international financial system and
the causes of instability in the international capital market. Theories of economic
crises.
3 Develop a systematic knowledge of the microeconomic and macroeconomics
foundations of international political economy.
4 Appreciate the similarities and differences in the economic challenges faced by
developed and less developed countries and between the different sectors of the
global economy.
5 Appreciate alternative economics systems and economic decision making comparing
markets, plan, and participatory models

Indicative content

Part I: International Trading system and Economic Development
1. International Trade theories
 Philosophical foundations: Liberalism; Mercantilism; Structuralism
 Trade versus International mobility of Factors (Labour, Capital, and Businesses)
 Theory of Comparator advantage
 Standard trade model
2. International Trade Policies
 Free trade
 Import substitution industrialization
 Export promotion
3. International and regional Institutions and the political economy of trade
 GATT to WTO
 Regional Integration in developed Countries: EU, NAFTA
 Regional Integration in Africa, Asia, Latin America
Part II: Theories and policies of development and international trade
1. Classical and neoclassical theories of trade and development
2. Marx’s analysis of capitalist development
3. Developmentalist theories
4. Institutionalists, structuralists, and the dependency school
5. Endogenous growth theory and new trade theory in new‐Keynesian economics
6. Post‐Keynesian theories of international trade and development
7. International and regional Institutions and the political economy of development
8. Development Policies Experiences in 20th and the 21st century
9. Domestic and international dimensions of the development challenge
Part III: International Financial system and Economic Development
1. Financial market reforms of 1990s and its impact on economic development in LDCs, ex‐
Communist countries and the advanced capitalist countries
2. International financial flows and economic development
Part IV: Theories of Economic Crises
1. Neoclassical economics and self‐adjusting markets
2. Marxist theories of economic crisis: realization crisis, profit squeeze, rising organic composition
of capital
3. Keynesian/Post‐Keynesian theories of crises: Financial fragility hypothesis; theories of underconsumption
4. Behavioural economics and crisis
5. Great Recession 2008‐13: A global overview: consequences and policy responses
Part V: Alternative paths to growth, development and models of decision making in different
economic systems
1. Markets vs. plan in capitalism and socialism
2. Participatory economics in capitalism and socialism
3. Asset Re‐distributive strategies (land, enterprises etc)
4. Open Economy strategies (openness to international trade and finance)
5. Surplus extraction strategies (strategies of internal finance)
6. Industrial policy strategies (green revolution, industrialisation, etc)
7. Mode of production (forms of ownership) strategies (private capitalism, state capitalism,
state‐socialism, co‐operativism etc

Teaching and learning activity

Learning and teaching activities will contribute to learning outcomes via lectures, seminars, directed
and self‐managed reading, research activities.

Assessment

Exam - 40%
Outcome - 1,2,3,4,5
3000 Words
Closed book
Examination, final exam week

Portfolio - 60%
Outcome - 1,2,3,4,5
4000 Words
2000 words essay;
Team meeting minutes; In‐class presentation; Group reflective report

Pass Mark 40%