EDE-232: International Economics

This course offers an analysis and review of international trade models, theiries and tools of classical, neo-classical and alternative theories, international monetary system and its role, forein exchange market, trade impacts, international policies affecting trade and development, etc. Course Content: 1. The rational of international trade-General Introduction 2. Theories Describing the basis of international Trade: Absolute Advantage Theory, Comparative advantage Theory, Opportunity Cost Theory. 3. Concept of Production Possibility Frontier and Consumption possibility frontier in explaining gains from international Trade. 4. Heckscher- Ohlin Model relating factor richness to specialization in production aimed at international trade. 5. Leontief Paradox on factor intensities of import and export. 6. Possibility of Factor Price Equalization under conditions of partial and complete specialization in production. 7. Offer curve of Countries involving international trade and equilibrium Terms of trade. 8. Secular Trade in terms of trade developed industrialized countries and the less developed agricultural countris. 9. Import substitution as against Export Promotion through trade as policy option. 10. Tariff and its effects on domestic production, prices, imports and consumption. 11. Stopler-Samuelson Theorem in explaining income distribution resulting from tariff imposition. 12. Froms of Preferential Trading Aggrement between and among Countries. 13. Theories of Customs Unions : Trade creation and Trade Diversion. 14. Balance of Payment as an accounting procedure with explanation of autonomous accomodating transaction. References 1. 2. 3. 4. Krugman and Obstfeld: International Economics ; McGraw Hill, New York, 2004. Salvator, D: International Economics ; McGraw Hill, New York, 2002. Miltiades Chacholiades: International Economics ; McGraw Hill, New York, 2000. Bo Sodersten, Geoffrey Reed: International Economics ; 3rd edition, Macmillan Prees.

EDE-233: Environmental Economics:

This Course provides Students with the study of relationship between the economy and the environment, concept of environmental pollution, optimal resources allocation, levels of environmental protection and public policy, conflicts between environmental quqlity and growth. Course Content: 1. The economy and environment: Inter linkages, Laws of Thermodynamics.

2. Market Failure: Incomplete markets, Externalities, Risk markets, non exclusion and commons, non rivalry and public goods, Asymetric information. 3. Ecosystem and its condition. 4. Economics of pollution: pollution flows, pollution stocks, and pollution damage, optimal pollution and efficient pollution, steady stste analysis, a simple static model of pollution, a dynamic model of pollution, air and water pollution. 5. Pollution Control: Control instruments, cost efficency and cost effective pollution, Economic incentive instruments, instruments for conserving biodiversity. 6. Economic incentives for environmental protection: Price rationing, charges and subsidies, liability rules etc. 7. Valuing the Environment: Teechniques, Ethics and social Choice, measuring values and benefits, Measuring welfare changes, indirect measurement, Major steps in CBA, risk and uncertanity. 8. The Economics of Sustainable Development 9. Environment and Development Issues in Bangladesh 10. Media and Gender 11. Gender and Globalization 12. Gender and Development in a mainstream framework References: 1. Barry C. Field K. Field: Environmental Economics An Introduction; McGraw-Hill Companies, 2005 2. Roger Perman, Yue Ma, James McGilvray: Natural Resource and Environmental Economics; Addision Wesley longman Limited, England, 1996. 3. Robert N. Stavins: Economics of Environment; Norton,W.W. & Co. Inc., 2005. 4. Horst Siebert: Economics of Environment the theory and Policy Springer-Verlag, New York, 2004. 5. A. Atik Rahman, Erik G. Jansen, Saleemul Haq: Environment and Development in Bangladesh; University Press limited, Dhaka, 1994.

EDE 313: Industrial Organization and Behavior :

This course acquaints Students with the theory of organization of markets and firms; behavior of firms, functioning of competitive systems and perfomence of markets, etc. Course Contentent: 1. Conceptual Issues of Industrial Organization a. Importance and Scope of Industrial Economics b. Concepts of Plant, Firm, and Industry and their interrelationship. 2. Business Organization a. Private sector vs Public sector b. Types of Private Sector Ownership c. Types of Public Sector Ownership 3. Objectives of a firm: Growth, profit and sales maximization

4. Determination of optimum size of a firm 5. Growth rate and the cost curve of a firm 6. Measurement of optimum size of a firm: a. Stiglers hypothisis and survivor technique b. Economies of scale and survivor technique 7. Industrial Concentration: a. Types of Concentration : I. Average Concentration II. Market Concentration b. Measurement of market Concentration I. Concentration Curve II. Concentration III. Lorenz Curve IV. Hirschman- Herfindahl index V. Lerner index c. Economics of Scale and Market Concentration d. Concentration Ratio and Monopoly Power. 8. Integration a. Concept and types of Integration b. Stiglers life-cycle hypothisis on vertical integration c. vertical integration and Monopoly 9. Diversification a. Typology and Diversification: I. Lateral Diversification 1. Convergence and Lateral Diversification 2. Divergent and Lateral Diversification II. Diagonal Diversification III. Conglomerate Diversification b. Measurement of Diversification: I. Diversification urve II. Specialization Ratio III. Berrys index IV. Number of industries c. Objectives of Diversification d. Diversification and competition 10. Condition of Entry a. Absolute cost Advantage b. Economies of Scale c. Product iversification 11. Market Structure, Invention and innovation a. Firm Size and technical progress b. Patent and copyright 12. Location of Industries: a. Significance of the location of industry- advantages and Disadvantages

b. Factors of the location of industry I. Historical II. Economical III. Political IV. Others 13. Industrialization in Bangladesh: References: 1. Don E. Waldman, Eligabeth J. Jensen: Industrial Organization: Theory and Practice; AddisionWesley, 2006 2. Jean Tirole: The theory of Industrial Organization MIT Press 3. R.R. Birthwal: Industrial Economics ; Wiley-Eastern Ltd., Delhi 4. Edith Tilton Penrose: Theory of the Growth of Firm ; Oxford University Press, 1995. 5. C. P. Sharma: Industrial and Regional Development; Deep & Deep Publication, New Delhi, 1998. 6. eAke E. Anderson, Tonu Puu, W. Isard: Regional and Industrial Development Theories, Models and Emperical Evidence; Elsevier Science, 1984.