Making a European Market
Full course description
Making a European Market seeks to introduce the students to the problems involved in an economic integration process in general and the European integration experience in particular. The course takes the “Theory of international trade” as its starting point and has a microeconomic emphasis. In this respect it complements the parallel course International Economics, which has a macroeconomic emphasis . In weeks 1 and 2, we will address some basic theories of international trade, and the consequences (for prices, quantities and welfare) of barriers to trade. The European economic integration process is essentially an attempt to progressively reduce trade barriers as much as possible, but on a discriminatory basis: while the internal trade barriers are reduced, this is not necessarily true for the barriers vis-à-vis the rest of the world. In weeks 3 to 5, we will carefully examine the consequences (for prices, quantities and welfare) of such preferential liberalization. We will also have a look at the influence of economic integration on long-term economic growth, and on labour markets. Armed with this theoretical knowledge, weeks 6 and 7 will have a closer look at several relevant EU policy areas, e.g. the common agricultural policy, regional policy, competition and state aid policy, and external trade policy.
At the end of this course, students will:
- know why nations trade and how trade affects people, companies, and governments;
- know how the effects of regional trade agreements (such as the EU) differ from those of moving to free trade in general;
- know how economic integration can influence economic growth;
- understand the effects of economic integration on labour markets;
- understand EU policy domains such as the common agricultural policy, regional policy, competition policy and external trade policy from an economic perspective
- Feenstra, R.C. and A.M. Taylor, International Economics, 4th international edition, Worth Publishers, 2017.
- Baldwin, R. and C. Wyplosz, The Economics of European Integration, 6th edition, McGraw Hill, 2020 (or the FASoS custom print of this book).