Economic Integrations

Economic Integrations

  • Study programme and level:The joint doctoral study programme Governance and Economics in the Public Sector (third cycle)
  • 2nd year
  • 5 ECTS
  • Course type: Elective course
  • Lectures: 20
  • Seminar: 20
  • Other forms of study: 20
  • Individual work: 90
  • Lecturer: Vinko Kandžija, PhD

1. Objectives and competences

To develop complex theoretical knowledge about specific impacts of economic integrations on national and entrepreneurial levels; the consequences brought about by their establishment, enlargement and deepening. As a result, the students will be able to, founded on theory, analyze the static and dynamic effects of economic integration of countries on macro and micro levels. The upgrading of theoretical knowledge is based on the analytical and thorough study of the economic integration theory since its beginnings, through the concept of second best solution and finally to the contemporary complex understanding of economic integrations as one of the possible reactions to the growing competitiveness among nations and companies in a globalized and ever more open market. Special emphasis will be put on theoretical aspects of economic integrations in view of their functioning and the effects caused by the enlargement and deepening of integration among EU countries.

2. Content (Syllabus outline)

  • Historical development of integration theory, from Wiener, through second best solution and finally to contemporary analysis of static and dynamic effects of integrations:
  • Customs union theory
  • Static effects; trade creation, trade diversion
  • Economy of scale and economic integrations
  • terms of trade and optimal trade protectionism
  • Transfer of income within an integration and the Kemp – Wan Theorem
  • Economic integration and performance in conditions of oligopoly or monopoly markets
  • Comparative advantages, competitiveness and economic integrations
  • Classic methods of measuring integration effects
  • Overview and basic evaluation of models for measuring integration effects
  • Analysis of familiar models and prognosis on dynamic effects of economic integrations:
  • Theoretical framework
  • Example analysis for some EU member states, EU and Croatia
  • Economics of internal market
  • Economics and monetary union – monetary union theory
  • Analysis of the functioning of EU as an internal market integration:
  • Effects on the market for production factors
  • Structural changes
  • Coordination of economic policies
  • Common policies – process and implications
  • Enlargement of the EU and competition
  • Simultaneous analysis of economic integration worldwide:
  • Formal institutional frameworks
  • Analysis of economic results
  • Croatia and effects of its accession to the EU

3.  Readings

  • Kandžija, V., Cvečić, I., 2010, Ekonomika i politika EU (Economics and Politics of the EU), Faculty of Economics of the University of Rijeka, Rijeka
  • Nello, S.S., 2011, The European Union: Economics, Policy and History 3/e, McGraw-Hill Higher Education
  • Baldwin, R., Wyplosz, C., 2012, The Economics of European Integration, McGraw-Hill Higher Education
  • Pelkmans, J., 2006, European Integration: Methods and Economic Analysis, Pearson Education
  • McDonald,F., Dearden, S., 2005, European Economic Integration, Pearson Education
  • Lucas Bretschger, Thomas M. Steger;  2004, The dynamics of economic integration: Theory and policy, Springer Verlag
  • Moussis, N. Access to European Union law, economics, policies. 20th edition

4. Intended learning outcomes

Broadening the knowledge on economic integrations and policies, functioning of selected integrations, developing competencies and skills especially in the field of analyzing static and dynamic effects of integration.

5. Learning and teaching methods

  • Lectures
  • Seminars and workshops
  • Research & individual studying
  • Multimedia and internet
  • Consultation & mentoring

6. Assessment

Attendance and activity in class 15%
Preparation and presentation of research 35%
Seminar paper 50%