Subject: Theory and Practices of Economic Integration

Timetable: Fridays 9.00-12.00

Professor Jin-sang Lee,
Room 525, International Studies Hall,
Graduate School of International Studies
Korea University
Tel: 3290-

, Mobile: 010-4722-3801, Fax: 929-0402

Dr. Jin-sang Lee can be contacted concerning course-related queries at jinslee@korea.ac.kr.

I.

Course Objective

This course provides the theoretical economic issues relating in economic integration and give
understanding regional economic integration in the world economy. Theories would cover costbenefits of economic integration on static analysis and dynamic concepts.
The course will bring cases of the European Union, NAFTA, MECOSUR, and others.
The aim is to investigate the contents areas through concentrating on key concepts that are
relevance to the whole course of study. We will question the concepts and look at differing views of
what they are, in order to develop our ability to argue and consider varying viewpoints. In addition,
we will aim to develop analytical skills, through the use of textbooks and articles containing diverse
views and arguments, and a questioning approach towards the use of evidence in both lectures
and seminars.

II.

Prerequisites

It is an asset if you took a course in basic economics before. You are expected to understand basic
concepts of micro/macro curves, though I will try to explain them briefly in class to render the
course self-contained.

III.

Texts

Robson, Peter, (1998), The Economics of International Integration, 4th edition, Routledge,
London and New York.
Jovanovic, M.N. (1998), International Economic Integration: Limits and Prospects, Routledge.
Baldwin, R and Wyplosz, Charles, (2006) The Economics of European Integration, 2nd edition,
McGrwa-Hill.
Additional readings are listed with the specific topics and will be assigned during the term.

IV.

Assessment

There will be one assignment to hand in for marking, and will be a presentation. The assignment
topics will be announced before week 7, and should not exceed 1,500 words. The deadline of the
assignment is week 12. It will require a presentation in the class and topics will be arranged on
week 4. There will also be two examinations.
The proportions of assessment would be as follows;
Presentation and Assignment: 40%
Course Attendance and Participation in Discussion: 20%
Two hour unseen examinations in the mid-term and end-term: 40%
V.

Course Outline

Part I: Basic Theories and General Aspects of Economic Integration

Week 1. Introduction to the Course, and the Meanings and Objectives of Economic
Integration
Robson, Ch.1
Baldwin and Wyplosz, Ch.5
Balassa, Bela,(1987) Economic Integration, in The New Palgrave Dictionary of
Economics, London: Macmillan.
Week 2. Types of Economic Integration and Regional Aspects
Robson, Ch. 2.
Greenway, David, Thomas Hyclak, and Robert Thornton, (eds.), (1989) Economic Aspects of

Regional Trading Arrangements, New York: Harvester Wheatsheaf.

Week 3. The Theory of Economic Integration I; Static analysis
Robson, Ch.2 & Ch.3.
Baldwin and Wyplosz, Ch. 4.
Lipsey, R, The theory of customs unions: a general survey, in JN Bhagwati (ed),

International Trade: Selected Readings, (2nd) edition.

Week 4. The Theory of Economic Integration II; Dynamic and Political Economy
Robson, Ch. 2& Ch.3.

 Baldwin and Wyplosz, Ch. 5 and Ch.6.

Winters, L.A., International Economics,
Lloyd, P.J.(1982) The Theory of Customs Unions, Journal of International Economics 12,
pp.41-63.
Week 5. World Economic Integration; The Impact to Multinational Corporations and
FDI
Robson, Ch. 8
Frankel, Jeffrey,(1997) Regional Trading Blocs in the World Economic System ,
Washington: Institute for International Economics.
Week 6. GATT/WTO Rules on Regional Integration Arrangements (RIAs)
OECD, Regional Integration and Developing Countries,
Lawrence, Robert,(1996), Regionalism, Multilateralism, and Deeper Integration,
Washington: Brookings Institution,
Week 7. Mid-term Examination

Part II: Analysis of Major Integration in the World Economy

Week 8 Economic Integration in Europe(I)
Baldwin and Wyplosz, Ch. 13. - Ch. 16.
Week 9. Economic Integration in Europe(II); The Enlarged EU and post 2004EU
Baldwin and Wyplosz, Ch. 8 & Ch.9.
The EU website for enlargement issues is: http://www.europa.eu.int/enlagement.
Week 10. Economic Integration in North America
Week 11. Economic Integration in Latin America
Week 12. Economic Integration in Africa and the Middle East
Week 13. Economic Integration in Asia
Week 14. Economic integration policies in China and Japan

 Korhonen, Pekka, (1994) Japan and the Pacific Free Trade Area, New York: Routledge.
Haggard, Stephan,(1995) Developing Nations and the Politics of Global Integration,
Washington, D.C.: Brookings Institution.
Week 15. Economic integration in Korean Context

Week 16. Final Examination