UNDERSTANDING GLOBAL ECONOMY
Learning outcomes of the course unit
At the end of the course, students will be expected to be able to:
1. Understand how 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. Improve their capacity to read and understand the contents of Reports (European Commission, ECB, OECD, IMF, etc.) and 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. Master their communication skills through talks on European topics, and interact with corporate executives and policymakers.
4. Conduct rigorous empirical analyses on industrial sectors and on aggregations of firms, such as industrial districts, clusters, and ‘European Champions’.
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.
A set of Didactic materials will be made available on the ELLY platform (http://elly.sea.unipr.it/2017/course/view.php?id=127) for further investigation of the topics covered in the textbook(s).
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: standard lectures, seminars and workshops, guest speakers. More in details:
First, the lectures of this course will present the contents of the textbook(s).
Second, alongside the theoretical lectures, the instructor will personally conduct a series of practice sessions designed to shed greater light on the industrial situations in Italy, in Europe, and in the global economy.
Finally, the program will be rounded out by a series of seminars with representatives from the economic world (business executives and/or members of various Research Departments).
The slides used during lessons (will be uploaded weekly on the ELLY platform. In order to download the slides, students must be registered for the online course.
The slides are considered an integral part of the didactic materials. Students who are not attending lessons should check the available didactic materials and the instructions given by the instructor on the ELLY platform.
Assessment methods and criteria
Applying knowledge and understanding will be evaluated through 2 essay questions (on theoretical arguments that are clearly covered in the textbook), for a maximum of 10 points each.
Communication skills using appropriate technical language will be evaluated through a brief commentary given about a table and/or graph, for a maximum of 3 points.
Independence of opinion and learning skills will be evaluated through the discussion of a case-study on the industrial sectors and enterprises presented in the textbook and/or in the didactic materials (on the instructor's homepage), for a maximum of 7 points.
The written exam will last 1 hour. The written exam is given a score from 0-30. Cum laude recognition will be given to students who have received the maximum score on all items and who have shown mastery of the academic lexicon and precision in their explanation of the subject matter.
The score of the written exam will be published on the ELLY platform within three weeks of the examination.