MESCI

Master in Economic Development and International Cooperation

D. Salvatore, March 2017

Name of Course: International Trade, Growth, and Development

Course Instructor: Dominick Salvatore (Web:

Course Description: The historical relationship between trade and development; international trade theory and economic development; terms of trade, export instability and economic development; import substitution versus export promotion; globalization, growth and development; empirical studies of the relationship between international trade and development.

Duration: 12 hours

Exam: One question on final exam

Outline: See below.

Recommended readings: see below

Links: See end of Chs. 1, 7, 11 of Salvatore, International Economics, 12th ed. (Wiley, 2016).

Outline:

I. International Trade and Economic Development

1. Historical relationship between international trade and economic development

2. International trade theory and economic development

II. Terms of Trade, Export Instability, Import Substitution and Economic Development

1. Terms of trade, export instability, and economic development

2. Import substitution versus export promotion

III. Globalization, International Competitiveness and Growth

1. Empirical studies of trade and development

2. Globalization and international competitiveness, and growth

3. World growth, trade, commodity prices, and exchange rates

Assigned Readings:

1. D.Salvatore, International Economics (12 Ed., Wiley, 2016), Chs. 1, 7, 11& readings end-of-chs. biblio.

2. D. Salvatore. “A Simultaneous Equations Model of Trade and development with Dynamic Policy

Simulations, Kyklos, 1983, pp. 66-90.

3. D. Salvatore and T. Hatcher, “InwardOriented and Outward Oriented Trade Strategies,”

Journal of Development Studies, April 1991, pp. 8-25.

4. G. P. Zanias, “Testing Trends in Terms of Trade between Primary Commodities and Manufactured

Goods, Journal of Developmet Economics, October 2005, pp. 49-59.

5. D. Salvatore, “Globalization, International Competitiveness, the New Economy and Growth”

in L. Paganetto, ed. Finance Markets, the New Economy and Growth, (Ashgate, 2005), pp. 103-120.

6. D. Salvatore, “The Challenges to the Liberal Trading System,” Journal of Policy Modeling,

July/August 2009, pp. 592-599.

7. D. Salvatore, “Globalization, International Competitiveness and Growth,”

Journal of International Commerce, Economics and Policy, April 2010, pp. 21-32.

8. D. Salvatore and F. Campano, “Globalization, Growth and Poverty,” Global Economic Journal,

Vol. XII, No. 4 (December 2012), pp. 1-13.

9. D. Salvatore, “Growth Prospects for the World Economy: Is the World Drifting Toward a

New Global Financial Crisis?" The Swiss Technical Analysis Journal, Autumn 2015, pp. 7-11.

Salvatore’s text (12th ed.) can be ordered From Amazon or from:

John Wiley & Sons Ltd.The Atrium; Southern Gate;Chichester; West SussexPO 19 8SQ;England

Telephone: 44-1243-779777/ Fax: 44-1243-775878;

E-mail: / Professor Inquiries E-mail: