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Semester 1

Development, Inequality and Trade (ECNM08024)

Subject

Economics

College

CAHSS

Credits

20

Normal Year Taken

2

Delivery Session Year

2023/2024

Pre-requisites

It is recommended that students have a good knowledge of calculus and basic mathematic tools such as log transformations. Please see Additional Restrictions below.

Course Summary

This course intends to illustrate the usefulness of economic analysis in a global context. The course is divided into 2 main themes: development economics, inequality and trade. The first part of the course focuses on developing countries and relevant principles of economic development. The second explores inequality and trade.

Course Description

This course is designed to provide an understanding of the key determinants of economic development and trade. The course is divided into two halves. In the first half, we begin by defining economic development and measuring the gap between poor and rich countries. We will define and make use of concepts like poverty, inequality and economic growth. We then review the classic theories of economic growth, which attempt to explain why some countries are rich and others are poor and contrast those with the contemporary models of development. We will also consider the role of political institutions and human capital in generating economic development. In the second half, we study how the economic development of different regions is interconnected through trade. We begin by examining the patterns of international trade. We then define and use the principle of comparative advantage. We formalise the reasons why countries trade using classical theories and general equilibrium models of trade. These models highlight that trade can generate both gains and inequalities.

Assessment Information

Written Exam 80%, Coursework 20%, Practical Exam 0%

Additional Restrictions

It is not suitable for students to take this course alongside Economics 1 (ECNM08013).

view the timetable and further details for this course