The course will be assessed via an in-course project and a final examination. The project will account for 40% of the overall course grade.
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1 COURSE TITLE: ECONOMIC INTEGRATION COURSE CODE: ECON 3020 LEVEL: UNDERGRADUATE LEVEL (FINAL YEAR) NO OF CREDITS: 3 PREREQUISITES: ECON 2000, ECON 2002 COURSE DESCRIPTION / RATIONALE: This course seeks to provide students with a relatively strong foundation in integration theory measurement and policy. The materials will be delivered via a series of face to face lectures and supported by structured tutorials. The course will discuss the critical theoretical concepts in integration developed by Balassa, Bhagwati, Panagariya, Cooper-Masell, Johnson and Demas. The course will review as far as possible integration experiences in the Caribbean Community (CARICOM), the Organization of Eastern Caribbean States (OECS), with emphasis on the EU-CARIFORUM Agreement. The course will be assessed via an in-course project and a final examination. The project will account for 40% of the overall course grade. Economic Integration is a course that is no doubt aligned to the Department s mission of delivering quality research and teaching of the economics of development for small island states as it focuses the case study aspect of the course on such economies. Even further than this it is expected that the mode of the delivery of the course material would allow for healthy discussions on region specific issues as it applies to the course. PURPOSE OF THE COURSE The purpose of the course is to highlight some of the important trade matters affecting the region and which are currently taking place at regional, hemispheric and global levels. The course offers practical interaction of theory via the case studies discussed in the classroom. Indeed such a course which is regional in scope is practical and useful to young economists in developing their knowledge base of the region. This is a third year undergraduate course and is geared to those students who have a general interest and affinity for international trade. INSTRUCTOR S INFORMATION LECTURERS: Dr. Roger Hosein and Ms. Rebecca Gookool LECTURER s OFFICE: Room 2018 Social Sciences Office Hours to be announced. LECTURER s Roger.Hosein@sta.uwi.edu; Rebecca.gookool@sta.uwi.edu LECTURER s PHONE CONTACT: EXT 3041
2 2 COMMUNICATION POLICY: The preferred mode of communication is via . LETTER TO THE STUDENT Dear Students, Economic Integration is a course that will allow you to get a better understanding of practical issues facing the Caribbean region. This course is going to be very interactive and it will be to your benefit to participate during lectures as your questions is what will guide the sessions and make the class more interesting. The lecturer will apply the material and techniques taught to issues relating to the realities of the region. Note that your success with the material depends on you. Welcome to Economic Integration. I look forward to your participation and engagement. CONTENT 1. Macroeconomic overview of the international, regional and global economy in the context of the economic slowdown. 2. Theoretical fundamentals of economic integration, including the Cooper Massel condition 3. Economic Integration through Sports: Olympics, Athletics and building social cohesion in CARICOM. 4. Case Studies of Select Integration Experiences: OECS, CARICOM, EU-CARIFORUM EPA 5. Gains from Economic Integration and Measurements of the Effects of International Integration 6. Economic Integration and the informal sector: The role of Informal commercial importers: Case Caribbean Higglers. 7. Growth, structural change and vulnerability, in CARICOM countries. 8. Assessing the welfare impact of the EU-CARIFORUM economic partnership agreement: the implications for policy in CARIFORUM economies. 9. CARIFORUM Economies: Factors affecting food security. 10. EU-CARIFORUM: some salient factors affecting trade and competitiveness. 11. Trade policy, integration and growth in the Caribbean. 12. CSME and the intra-regional migration of nurses: some proposed opportunities. 13. The future of CARICOM in a globalizing world. GOALS/AIMS To equip students with an adequate set of tools; theoretic and practical; to understand regional
3 3 trading blocs. GENERAL OBJECTIVES To simplify the theory of regional integration into practical easy to follow steps. TOPIC OBJECTIVES/LEARNING OUTCOMES By the end of the courses students will be able to: 1. Demonstrate an appreciation for the regional integration issues as it affects the Caribbean development. 2. Demonstrate an appreciation for discussions on regional integration and trade related challenges facing the Caribbean region. ASSIGNMENT Students will also be required to undertake a project The Project questions are as follows: 1) Is the Economic Partnership Agreement a return and or an extension of the policy of imperial preference practiced and pursued by the British Empire during the 19th Century? Justify your answer using tables and graphs as far as possible. 2) What is the muscovado bias? Does the Economic Partnership Agreement between the EU and the CARIFORUM economies carry an element of muscovado bias to it? Justify your answer using tables and graphs as far as possible. 3) Using any model of your choice, calculate the welfare effect for any of the listed CARIFORUM Economies of the recently signed Economic Partnership Agreement. (Guyana, Barbados, Trinidad and Tobago) 4) Evaluate the impact of the EU-CARIFORUM Economic Partnership Agreement on the growth prospects of any CARIFORUM Economy and as part of your discussion illustrate how the EU-CARIFORUM Economic Partnership Agreement impacted CARIFORUM Trade with the EU. 5) Evaluate the actual and potential impact of the EU-CARIFORUM Economic Partnership Agreement on the Food Security situation in five CARIFORUM Economies (inclusive of the Dominican Republic). Substantiate your answer as far as possible. COURSE ASSESSMENT 20% Course work project 80% Final Examination
4 4 EVALUATION The lecturer is available during the designated office hours to meet with students on course related matters. Even further than this students can lecturer regarding issues and challenges faced. The lecturer will assist as far as possible with these challenges as required in the classroom and otherwise. TEACHING STRATEGIES The mode of teaching will be via face to face lectures and tutorials sessions. Cases and group discussions will also be used. RESOURCES Lecture notes will be provided to the class via the online course profile. Readings from texts are also provided. READINGS Recommended and General Texts on Integration Hosein R., (2013) Applications of International Trade Theory: The Caribbean Perspective Tewarie B. and Hosein R, (2007), Trade Investment and Development in the Contemporary Caribbean, Ian Randle.
5 5 COURSE CALENDAR Topic Reading Week Overview and introduction i. UNECLAC (2009), Preliminary Overview of Caribbean Economies 1 to course. ii. Lall (2008) IMF Predicts Major Global Slowdown Amid Financial Macroeconomic overview Crisis. World Economic Outlook. Available at of the international, regional and global m economy in the context of iii. Central Bank of Trinidad and Tobago (2008) Speech by the Governor the economic slowdown. of the Central Bank, The Impact of Global Events of Caribbean Economies. Available at: iv. CMMB: Emerging Markets Weekly (2009): A Reversal of Luck for Trinidad and Tobago in 2009? The student will have an appreciation of the structure of CARICOM economies and how changes in the global environment can impact the Caribbean region. This topic will expose students to a wide of official statistics and country reports. Theoretical fundamentals of i. Chapter 11-15: Trade Text Manuscript: International Trade Theory, economic integration, with Application to the Caribbean. including the Cooper ii. Vamvakidis, A., (1998), Regional Integration and Economic Massel condition Growth. The World Bank Economic Review, vol.12, no.2 pp iii. Tewarie B. and Hosein R, (2007), Trade Investment and Development in the Contemporary Caribbean, Ian Randle. Chapter 3. iv. Viner, J., (1950), The customs union issue. Carnegie Endowment for International Peace, New York, NY, USA; Stevens and Sons, London, UK. v. Khadan, Jeetendra and Roger Hosein (2013), New Empirical Insights into the Natural Trading Partner Hypothesis for CARICOM Countries. Munich Personal RePEc Archive Paper No The student will have an appreciation of the theoretical fundamentals of economic integration via partial equilibrium and general equilibrium Economic Integration through Sports: Olympics, Athletics and building social cohesion in CARICOM. models. i. Robinson P. L. (2007), Jamaica Track and Field, A Model for the World. ii. Tcha, M. and Pershin, V. (2003). Reconsidering Performance at the Summer Olympics and Revealed Comparative Advantage, Journal of Sports Economics, Vol. 4 (3), August, iii. Bernard, A. B. and Busse, M. R. (2000). Who Wins the Olympic Games: Economic Resource and Medal Totals. NBER working paper, August iv. Sinclair Donald 2005, 537- Sports Education a Priority for Caribbean Sports Tourism. International Journal of contemporary Hospitality Management Vol 17, no The student will have an appreciation of the factors which influence a country s medal count at the Olympic Games from a Caribbean perspective and an understanding of how sports can be used to foster Caribbean integration. Case Studies of Select Integration Experiences: OECS, CARICOM, EUi. Baier, Scott L. and Jeffrey H. Bergstrand (2007), Do free trade agreements actually increase members' international trade?, Journal of International Economics vol. 71 Iss. 1, March
6 6 CARIFORUM EPA ii. Brewster, Havelock (2008), The Anti-Development Dimension of the European Community s Economic Partnership Agreement for the Caribbean, Paper presented at the Commonwealth Secretariat High Level Technical Meeting: EPAs: The Way Forward for the ACP. Cape Town, South Africa, 7-8 April. iii. Dodson, Louis (2013) "The EU-CARIFORUM Economic Partnership Agreement (EPA): An assessment of the static welfare impacts on Guyana", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 9 Iss: 4, January. iv. Genderen-Naar, Joyce Van (2012), The CARIFORUM-EU EPA five years after, Paper presented to The ACP-EU Joint Parliamentary Assembly (JPA), Paramaribo, Suriname, November. The student will be able to assess the performance of various forms of Gains from Economic Integration and Measurements of the Effects of International Integration Economic Integration and the informal sector: The role of Informal commercial importers: Case Caribbean Higglers Growth, structural change and vulnerability, in CARICOM countries integration arrangements i. Khadan, Jeetendra and Roger Hosein (2013), International Growth Spillovers in the CARICOM region: New evidence from VAR models, unpublished. The student will have an appreciation for the importance of international growth spillovers in developing countries growth with particular reference to the CARICOM region. i. Witter, M. (ed). (1989). Higglering, Sidewalk Vending, Informal Commercial Traditions in the Jamaican Economy. Proceedings of a Symposium. UWI, Department of Economics, Occasional Paper No. 4, Jamaica ii. Women in Informal Employment: Globalizing and Organizing (WIEGO) (2001). A Policy Response to the Informal Economy, WIEGO, iii. Vaknin, S. (2005), Trading from a suitcase: Shuttle trade and Global Black Market, iv. ILO (2001), Booklet 4, Organizing the unorganized informal economy and other un protected workers. v. Hosein et al (2008) Informal Commercial Importers in the Caribbean: Evidence from Trinidad and Tobago and Guyana. (paper sent to Social and Economic Studies) The student will have a working understanding of the dynamics of informal commercial importers in the Caribbean and the implications for regional integration. i. World Bank, (2005), A Time to Choose: Caribbean Development in the 21 st Century. ii. Jessen A., and Vignoles C., (2003), Trinidad and Tobago Trade Policy Issues in an Era or growing Liberalization. INTAL-IND Occasional Paper iii. Arthur, O., (2001), The Promise and the Peril: A Caribbean Perspective on the FTAA. Key Note Address at the CLAA Miami Conference on Free Trade and Integration Implications for the Caribbean Basin CLAAMiamiConference.pdf iv. Aron, J., (2000), Growth and Institutions: A Review of the Evidence. The World Bank Research Observer, vol. 15, no. 1, pp v. Hosein R., (2008) Regional Economic Partnership Agreement and the Implications for CARICOM Development into the 21 st Century. Caribbean Journal of International Relations
7 7 Assessing the welfare impact of the EU- CARIFORUM economic partnership agreement: the implications for policy in CARIFORUM economies. CARIFORUM Economies: Factors affecting food security. EU-CARIFORUM: some salient factors affecting trade and competitiveness. vi. (2002) Growth, Structural Change and Vulnerability in Caricom Countries Global Development Studies 21 century International Development Options Winter 2002 Spring pp vii. Tewarie B. and Hosein R, (2007), Trade Investment and Development in the Contemporary Caribbean, Ian Randle. Chapters 1 and 6. The student will have an understanding of the peculiarities of Caribbean economies in terms their inherent vulnerabilities, trade and growth. i. Greenaway D., and Milner C., (2003), A Grim REPA. GEP Research Paper 03/30 s/03_30.pdf ii. Nicholls, S., Christopher-Nicholls J., and Colthrust P., (2000c), Evaluating the Fiscal Impact of a Regional Partnership Agreement between the European Union and CARICOM. iii. Bhagwati, J., Greenaway D., and Panagariya, A., (1998), Trading Preferentially: Theory and Policy. Economic Journal 108(449), iv. Arora, V., and Vamvakidis, A., (2004), How much do trading partners matter for economic growth. IMF Paper, WP/04/26. v. Hosein R., (2008) CARIFORUM-EU Economic Partnership Agreement: the Welfare Impact and implications for policy in T&T, Journal of Business, Finance and Economics in Emerging Economies. The student will have an understanding of some of the basic technical skills for assessing the impact of trade agreements on countries with particular reference to the EU-CARIFORUM EPA and the CARICOM- Canada FTA. i. Ford, Deep J. and Rawlins, G. (2007), Trade policy, trade and food security in the Caribbean, in Ford, J. and Conforti, P. eds, pp Agricultural Trade Policy and Food Security in the Caribbean, Rome, FAO. ii. Mathews, Alan (2010), Economic Partnership Agreements and Food Security, IIIS Discussion Paper, No. 319, Department of Economics and Institute for International Integration Studies Trinity College Dublin. iii. Stokes, Bruce (2008), Food is different, National Journal, 7 June, available at p iv. Sun, Lin and Michael R. Reed (2010), "Impacts of Free Trade Agreements on Agricultural Trade Creation and Trade Diversion", American Journal of Agricultural Economics, vol. 92, Iss. 5. The student will have an understanding of the factors impacting on food security in the CARIFORUM region. i. Brewster, H and Thomas, C.Y. (1967) The Dynamics of West Indian Integration, Mona,Jamaica: I.S.E.R., University of the West Indies. ii. Kolodko G., (2003), Structural Reform and Economic Growth in The Opening and Closing Balance, TIGER Transformation, Integration and Globalization Economic Research, Leon Kozminski Academy of entrepreneurship and Management
8 8 Trade policy, integration and growth in the Caribbean CSME and the intra regional migration of nurses: some proposed opportunities The future of CARICOM in a globalizing world. Revision (WSPiZ), Warsaw ( ). iii. Rodrik D (2004), Getting Institutions Right. iv. Hosein R., (2008) CARICOM: Some Salient Factors Affecting Trade and Competitiveness, Journal of Commonwealth International Affairs. The student would have an appreciation of the factors that influence trade and competitiveness in the CARIFORUM region. i. Gonzales, A. (2001), Caribbean Integration in the Next Decade: A Strategic Vision for the New Millennium, in Kenneth Hall eds, The Caribbean Community: Beyond Survival, Inn Randle Publishers, Kingston. ii. Nicholls, S. et. al. (2000), The State and Prospects for the Deepening and Widening of Caribbean Integration. Paper prepared for submission to a special issue of the World Economy on Global Economic Developments (Trinidad). iii. Pollard, Duke, (1998), The Community: Restructuring for the New Millennium, CARICOM Perspective, Vol. 68, pg. 25. iv. Schiff, M (1997), Small is Beautiful: Preferential Trade Agreements and the Impact of Country Size, Market Share, Trade Policy and Smuggling, Journal of Economic Integration, 12 (3), The student would have an understanding of the link between regional integration and economic growth. i. Stilwell B., et. al Migration of Health Care Workers from Developing Countries: Strategic Approaches to its Management. Bulletin of World Health Organization 82 (8) , WHO, Geneva, Switzerland. ii. Stubbs. J. and Reyes, H Migration in the Caribbean: A Path to Development. En Breve, May, No. 48. iii. Thomas-Hope E Skilled Labor Migration from Developing Countries: Study on the Caribbean Region. International Migration papers 50. International Labor Organization, Geneva, Switzerland. iv. Yan, J Caribbean Nurses Develop Strategy for Nurse Shortages. International Nursing Review, 49: v. Yan, J Managed Migration of Skilled Nursing Personnel, 10 th COHSOD Meeting, Tobago. vi. Hosein R., (2006) Conceptualizing A Strategic Approach to Mode 4 and the Managed Migration of Nursing Skills. Social and Economic Studies Vol 55, No 4 pp vii. Hosein R., (2007) Caribbean Single Market Economy (CSME) and the Intra-Regional Migration of Nurses: Some Proposed Opportunities, Global Social Policy Vol 7, pp The students would have understanding the issues relating to the migration of CARICOM nurses. i. Worrell DeLisle (2013), The Economic Prospects for the Caribbean, CBB Working Paper, No. CBB WP/13/3, Central Bank of Barbados Research and Economic Analysis Department, January. The student would have an understanding of the importance of the economic prospects of Caribbean countries in a globalizing world
9 9 ADDITIONAL INFORMATION 19 Any candidate who has been absent from the University for a prolonged period during the teaching of a particular course for any reason other than illness or whose attendance at prescribed lectures, classes,... tutorials,... has been unsatisfactory or who has failed to submit essays or other exercises set by his/her teachers, may be debarred by the relevant Academic Board, on the recommendation of the relevant Faculty Board, from taking any University examinations. The procedures to be used shall be prescribed in Faculty Regulations. 97. (i) Cheating shall constitute a major offence under these regulations. (ii) Cheating is any attempt to benefit one s self or another by deceit or fraud. (iii) Plagiarism is a form of cheating. (iv) Plagiarism is the unauthorized and/ or unacknowledged use of another person s intellectual effort and creations howsoever recorded, including whether formally published or in manuscript or in typescript or other printed or electronically presented form and includes taking passages, ideas or structures from another work or author without proper and unequivocal attribution of such source(s), using the conventions for attributions or citing used in this University (i) If any candidate is suspected of cheating, or attempting to cheat, the circumstances shall be reported in writing to the Campus Registrar. The Campus Registrar shall refer the matter to the Chairman of the Campus Committee on Examinations. If the Chairman so decides, the Committee shall invite the candidate for an interview and shall conduct an investigation. If the candidate is found guilty of cheating or attempting to cheat, the Committee shall disqualify the candidate from the examination in the course concerned, and may also disqualify him/her from all examinations taken in that examination session; and may also disqualify him/her from all further examinations of the University, for any period of time, and may impose a fine not exceeding Bds$ or J$ or TT$ or US$ (according to campus). If the candidate fails to attend and does not offer a satisfactory excuse prior to the hearing, the Committee may hear the case in the candidate s absence. HOW TO STUDY FOR THIS COURSE Students should keep up-to-date with lectures, office hours and tutorials. Attendance to at least 75% of tutorials is mandatory.
10 10 GRADING SYSTEM GRADE GPA MARKS% A and Over A A B B B C C C D D F
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