UNDERSTANDING GLOBAL ECONOMY
Learning outcomes of the course unit
1. Knowledge: This course will allow students to make practical application of the principles of micro and macroeconomics that they have learned during their ‘Laurea Triennale’ (three-year degree); the goal is to better understand the mechanisms of economic growth – with a particular emphasis on the role of manufacturing – as described in the media.
2. Judgment: Students will improve their capacity to read and understand the contents of media articles - with special emphasis on the analysis of “new” industrial policies -, thereby learning how to independently evaluate the effects of public policies towards industries and firms.
3. Communication skills: This course encourages the communication skills of students, structuring talks on European topics (“EuroScenari”) in the following ways: (i) informal and collective discussion of media articles taken from the internet; or (ii) a paper presentation; the organization of both (i) and (ii) will be explained in class at the beginning of the course.
Basic tools of Microeconomics and Macroeconomics
Course contents summary
The first part of this course will present the main trends, tools, and indicators of the economic cycle, and gives a thorough analysis of the effects of the financial crisis that exploded in 2007-2008. The second part of the course will then examine the “manufacturing renaissance” taking place in
all of the major Western advanced countries (the US and the EU first and foremost), and the effects of the “new” industrial policy on markets and firms.
1. An Overview.
2. The financial crisis (2007-2008), the Great Recession (2008-2009) and their legacy.
3. The European Union (EU) economy before and during the crisis. And afterwards?
4. The 21st century economy (part I): a globalized world (the rise of the BRICs and others, the strategic role of international trade and FDI flows).
5. The 21st century economy (part II): a new industrial revolution (“Industry 4.0”, “The Internet of Things”, etc.).
6. The new industrial policy and the “manufacturing renaissance”:
- Why manufacturing matters;
- The growing interdependence with the services sector;
- Economies of scale Vs. External economies;
- The key-issue: knowledge-based investments (R&D, human capital, IT);
- Case study/i: Italy, Germany, and the EU;
- Case study/ii: the US;
- Case study/iii: Emerging markets and Developing economies;
- Case study/iv: the “Emilian Model”, industrial districts and clusters.
7. Conclusions. The return of an age-old question: “Market forces Vs Strategic behavior” [A. Jacquemin 1987]; the relationship between Industrial Policy and Competition Policy.
Required readings for all students (whether attending classes or not) include:
(a) F. DAVERI, Macroeconomia della crisi.
- (b) F. MOSCONI, Origine e sviluppo della nuova politica industriale. Una prospettiva europea, Monte Università Parma editore (MUP), 2013.
- (c) Excerpts from: F. MOSCONI, The New European Industrial Policy. Global competitiveness and the manufacturing renaissance, Routledge, 2015.
For students attending classes only: PPT or PDF slides with lecture notes downloadable at the course website; and more recommended readings will be made available when the course starts.
For students not attending classes only: (i) F. MOSCONI, The New Industrial Policy in Europe a Decade After (2002-2012), in M. Yülek (Ed.), “Economic Planning and Industrial Policy in the Globalizing Economy”, Springer International, pp. 207-238; (ii) A more complete reading list will be provided at the start of the Spring semester.
The course will be taught following three main teaching tools:
1. Standard lectures
2. Guest speakers
3. (optional) “EuroScenari” (see above: Communication skills)
Assessment methods and criteria
Final exam (up to 20 pts for knowledge; up to 10 pts for judgement; up to 3 pts for communication skills): written exam.