Economics of Globalisation

The teacher is Nicola Coniglio from Università degli Studi di Bari ‘Aldo Moro’ in Italy.

There are no pre-requisites for the Economics of Globalisation course.

• The Stylized Facts of Globalization: Discussion of the main issues concerning globalization and trade.
• Technology Diffusion: How increased technology flows affect growth and is there convergence?
• Effects over Labour: Is inequality an issue?
• Heterodox Approaches: The relationship between growth and globalization in heterodox approaches.
• Exchange Rate Issues: The role of exchange rates in growth models.
• Capital Flows and Fiscal Issues: Capital flows and fiscal issues and growth.

The course aims at analysing globalization in an economics perspective.

It will focus on effects of increasing trade and capital flows on growth, labour markets, taxation and finance.

1. The Stylized Facts of Globalization:

• J. Bhagwati (2007), In Defense of Globalization, Oxford University Press
• D. Rodrik, Has Globalization Gone too Far?, Challenge, Vol. 41, no. 2 (March/April, 1998), pp. 81-94.
• J. Stiglitz (2003), Globalization and its Discontents, W.W. Norton and Company

2. Technology Diffusion:

• E. Helpman, R&D and Productivity: The International Connection, NBER Working Paper no. 6101 (July 1997)
• Fagerberg, Srholec & Verspagen, Innovation and Economic Development, In: A. Razin & E. Sadka (19919), The Economics of Globalization, Cambridge University Press
• Fagerberg, Technology and International Differences in Growth Rates, Journal of Economic Literature, Vol. 22, no. 3, pp. 1147-75.
• Keller, International Trade, Foreign Direct Investment and Technology Spillovers, In: B. Hall & N. Rosenberg (2010), Handbook of the Economics of Innovation, North Holland
• Feldman & Kogler, Stylized Facts in the Geography of Innovation, In:B. Hall, B. and N. Rosenberg (2010), Handbook of the Economics of Innovation, North Holland
• Asheim & Gertler (2005), The Grography of Innovation: Regional Innovation Systems, In:J. Fagerberg, D. Mowery & R. Nelson (2005), The Oxford Handbook of Innovation, Oxford University Press

3. Effects over Labour:

• N. Chau & O. Stark, Human-Capital Formation, Asymmetric Information, and the Dynamics of International Migration, In: A. Razin & E. Sadka, E. (1999), The Economics of Globalization, Cambridge University Press
• G. Saint-Paul, Economic Integration, Factor Mobility, and Wage Convergence, In: A. Razin & E. Sadka, E. (1999), The Economics of Globalization, Cambridge University Press
• J. Sachs & H. Shatz, US Trade with Developing Countries and Wage Inequalities, AEA Papers and Proceedings, Vol. 86, no. 2 (May 1996)
• M. Rama , Globalization and the Labor Market, The World Bank Research Observer, Vol. 18, no. 2 (Autumn 2003) pp. 159-186.
• G. Garret, Globalization and Government Spending Around the World, Studies in Comparative International Development, Vol 35, no 4 (Winter 2001-, pp. 3-29.

4. Heterodox Approaches:

• A. Bhaduri & S. Marglin, Unemployment and the Real Wage: the Economic Basis for Contesting Political Ideologies, Cambridge Journal of Economics, 14, 1990, pp. 375-393.
• Thirwall, The Balance of Payments Constraint as an Explanation of International Growth Rate Differences, Banco Nazionale del Lavoro Quaterly Review, 32, 1979.
• Onaran & Galanis, Is Aggregate Demand Wage-Led or Profit-Led? National and Global effects, International Labor Office, 2011.
• Williamson & Haddas, Terms of Trade Shock and Economic Performance 1870-1940: Prebisch and Singer Revisited, NBER Working Paper no. 8188, 2001
• Thirwall & Hussain, The Balance of Payments Constraint, Capital Flows and Growth Rate Differences between Developing Countries, Oxford Economic Papers New Series, Vol. 34, 3, Nov 1982
• H. Hieke, Balance of Payments Constrained Growth: A Reconsideration of the Evidence for the US Economy, Journal of Post Keynesian Economics, Vol. 19, no, 3, 1997
• Moreno-Brid & Pérez, Balance of Payments Constrained Growth in Central America: 1950-96, Journal of Post Keynesian Economics, Vol. 22, no. 1, 1997, 1999
• J. McCombie, On the Empirics of Balance of Payments Constrained Growth, Journal of Post Keynesian Economics, Vol. 19, no, 3, 1997

5. Exchange Rate Issues:

• Levy-Yeyati & Sturzenegger, To Float or to Fix: Evidence on the Impact of Exchange Rate Regimes on Growth, American Economic Review, 93, 4, 2003
• Krugman, A Model of Balance-of-Payments Crisis, Journal of Money, Credit and Banking, Vol 11, no. 3, August, 1979
• Frankel, No single Currency Regime is Right for All Countries or at All Times, NBER Working Paper no. 7338, 1999
• W.M. Corden, Booming Sector and Dutch disease Economics: Survey and Consolidation, Oxford Economic Papers, 36, 1984.
• Razin & Collins, Real-Exchange Rate Misalignment and Growth, In A. Razin and E. Sadka (1999), The Economics of Globalization, Cambridge University Press

6. Capital Flows and Fiscal Issues:

• Dharmapala (2008), What Problems and Opportunities are Created by Tax Havens? Available at SSRN (http://ssrn.com/abstract=1279146 or http://dx.doi.org/10.2139/ssrn.1279146)
• Baldwin & Krugman, Agglomeration, Integration and Tax Harmonization, European Economic Review, 48, 2004

Upon successful completion of the course, students should be able:

• To evaluate the effects of globalization in both developed and noneloped countries in a critical way
• To distinguish these effects from local issues
• To analyse policy initiatives regarding the issue

The course is taught in two weeks of 15 hours of lecturing each.

At the end of each week, students get a test. Each test counts for 15% of the final grade. Students also have to sit an exam that consists of three up to five essay questions regarding the topics discussed in class.