University of the Philippines School of Economics Economics 190.

1 Trade, Payment and Development

Florian A. Alburo Consultation Hrs: 2-6 PM, Tuesdays By Appt. 920-5460 (Baby/Sec.) 0918.912.1059

SY 2012-2013 II
Main References:

faalburo@econ.upd.edu.ph

Dominick Salvatorre, International Economics, 8th edition (John Wiley 2004) [DS] 9th edition (2007) Michael P. Todaro and Stephen c. Smith, Economic Development, 8th edition (Addison Wesley 2003) [TS]10th edition (2009) Other readings to be assigned. Supplementary Reference: Paul Krugman and Maurice Obstfeldt, International Economics 7th edition (2006) Net Resources: http://internationalecon.com/index.html http://www.bized.co.uk/educators/16-19/economics/development/presentation/models.ppt#18 I. Introduction: Outward Looking and Development (Individual Study) *http://sambal.up.edu.ph/fsioniljose_news.htm The University of the Philippines and the Nationalist Revolution (2004) and the reactions (David, Lumbrera, Lee) *F. Sionil Jose Whose Fault Is It? Philippine Star (June 13, 2004) [TS] Ch 12, 13 Reference (Ch 3, 4) [DS] Ch 11.1, 11.2, 11.5, 11.6 II. The Theory of Trade Ricardian Framework Heckscher-Ohlin General Equilibrium Empirical Tests/Recent Explanations Trade and Growth *[DS] Ch 2-7 Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776, Book I, Ch 1-3; Book IV, Ch 1 P.R. Krugman, Economic Competitiveness: Myths and Realities, Science (November 1991), 811-15 _________, Does Third World Growth Hurt First World Prosperity? HBR (July/August 1994) 113-21

Martin Baily, Recent Productivity Growth: The Role of Information Technology and Other Innovations, Federal Reserve Bank of San Francisco Economic Review 2004 (http://frbsf.org/publications/economics/review/2004/er35-42bK.pdf) III. Trade, Protection and Development Tariff Non-tariff measures Factor Movement Arguments For/Against Protection Political Economy of Protection [DS] Ch 8.1, 8.2, 8.3, 8.4; Ch 9.1, 9.2, 9.3, 9.4 [TS] Ch 12 IV. Philippine Experience History Trade Policy Issues Recent Developments J. H. Power and G.P. Sicat, The Philippines: Industrialization and Trade Policies (London: Oxford 1971) Ch 2, 4, 5 F.A. Alburo, Import Liberalization Revisited UPSE Discussion Paper 86-11 F.A. Alburo, The Political Economy of Liberalizing Foreign Trade: Philippine Experience, PREB (June 1993) 122-40 M.B. Lee, After All These Years, Leavetaking, Sunday Times Magazine (August 19, 1990) pp. 8-10 V. Economic Integration and the Global Trading System GATT/WTO Regional Trading and Free-Trade Areas Globalization [DS] Ch 9.7; Ch 10 D. Rodrik, Symposium on Globalization in Perspective: An Introduction JEP (Fall, 1998) pp 3-8 R. Feenstra, Integration of Trade and Disintegration of Production in the Global Economy, JEP (Fall 1998) pp 31-50 Lee, Susan and Christine Foster, The Global Hand Forbes (April 21, 1997) D. Rodrik, "Trading in Illusions," Foreign Policy (March/April 2001) World Trade Report 2008, II-F Policy Implications of Global Integration and the WTO Balance of Payments: Measures [DS] Ch 14.1, 14.2, 14.4, 14.5 Philippine Balance of Payments, CB Reports Balance of Payments Adjustments [DS] Ch 15-17 Alan Taylor, Global Finance: Past and Present, Finance and Development (March 2004) Exchange Rates and Trade - Readings to be assigned.

VI.

VII.

VIII.

Rules: 1. NO active CELLPHONE during class time 2. Marked Absences: to follow University Code 3. Two Examinations: Mid-Term and Final (according to Department schedule): 60% passing 4. 5 Exercise Sets: Every 2 weeks 5. Grade Distribution: Final (50%); Mid-term (30%); Exercise (15%); Class recitation (5%)