International Economic Geography

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The course is devoted to explaining the patterns of international location of economic activity. Topics discussed include the formation of industrial and service clusters, regional versus national specialization in production, the role of metropolitan areas as the engines of innovation, economic growth and regional development, declining and emerging regions, economic activity of population, regional unemployment and regional wage determination, international labour and human capital mobility, the role of foreign direct investment in shaping the world patterns of specialization. The seminar is designed mainly for Master of Arts in International Economics Program, however, exchange students visiting the Department of Economics at Warsaw University are also welcome to participate. Polish students with good working knowledge of English from other specialization fields can enroll subject to instructor's approval. The assesment is based on the presentation and the final paper.

The course is divided into 3 parts. The first part shows the empirical data on regional development. The second part is devoted to the theoretical models. Finally, the third part shows the results of empirical research.

Part one:

1. Stylised facts on the international economic landscape.

2. Regional unemployment and economic activity.

3. Economic geography and international economics.

4. Factor endowments and regional specialization.

5. National and regional patterns of specialization.

6. Industrial and service clusters.

Part two:

7. The antecedents of economic geography: von Thunen model, Weber model, Isard model and Losch model.

8. Core periphery models by Myrdal, Hirschman and Perroux.

9. Core models of economic geography - the Krugman model..

10. Urban systems and growth.

11. Cities and trade policy

Part three:

12. Wage determination.

13. Multinational enterprise and FDI.

14. Determinants of international location of production.

15. Policy implications

Required Readings:

Baldwin R., Forslid R., Martin P., Ottaviano G.M., Nicoud F.R., Economic Geography and Public Policy, Princeton University Press, Princeton 2003.

Brakman S., Garretsen H., Marrewijk Ch. van, An Introduction to Geographical Economics: Trade, Location and Growth, Cambridge University Press, Cambridge 2001.

Recommended Readings:

Fujita M, Krugman P. Venables A., The Spatial Economy: Cities, Regions, and International Trade, MIT Press, Cambridge M.A. 1999.

Fujita M., Thisse J-F., Economics of Agglomeration, Cambridge University Press. 2002.

Students will become familiar with various theoretical and empirical modelling techniques currently used in the new economic geography. Upon the completion of the course students will be able to build their own theoretical models and conduct independent empirical research. The course will provide excellent preparation for writing an MA thesis in the field of international economic geography.

SU05, SU06, SK01, SK03, SU04, SU03, SU02, SU01, SW03, SW02, SW01, SW04, SW05, SK02, SK04

The grading will be based on two in-class presentations and one final paper. The paper may be a critical literature review, or an original contribution to the literature. The seminar grade is based on the following formula: two presentations (20%), final paper (80%). Each paper is evaluated on the basis of:

o Clarity of exposition - 20%

o Academic writing quality - 30%

o Substantive quality - 50%.