ECN 4006 ECONOMICS OF INTEGRATION

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Doç.Dr. Pınar NARİN EMİRHAN

The objective of this course is to introduce the
students the types of economic integrations and
to analyze the effects of economic integration
on integrating countries.

International Economic Integration is the
institutional combination of seperate national
economies into larger economic blocks or
communities, in order to promote efficiency in
resource use on a regional basis.
 Midterm
Exam
 Research Paper and Presentation
 Total
: 40 %
: 60 %
: 100 %
 Baldwin,
R. And Wyplosz, C. (2006) The
Economics of European Integration, Second
Edition, McGraw Hill.
 Robson,
Peter (2000) The Economics of
International Integration, Fourth Edition,
Routledge: London.
 Additional
readings/articles.
Date
Subject
Oct. 5
Introduction
Oct. 12
The forms of economic integration; The theory of customs
union; Topic selection by students
Oct. 19
Economies of scale in a customs union; The theory of free
trade areas; Submission of research proposals
Oct. 26
Religious Holiday
Nov. 2
CU vs. Unilateral Tariff Reductions; The theory of common
markets; Announcement of presentation dates of each
group
Nov. 9
Integration of fiscal and monetary policies
Nov. 16
A brief summary of EU hstory; APA format
Nov. 23
Mid-term Examinations
Nov. 30
Mid-term Examinations
Dec. 7–Jan. 11
Student Presentations (6 weeks)
Only suggestions not limited to these subjects!

1. Understanding Globalization
 Why globalization accelarated after 1990’s?
 Do globalization and economic integrations contradict?
 Why some economic integrations fail?

2. Tax harmonization in the EU
 Value added tax (VAT): source vs. destination principle
 Measures and proposals in the area of corporate taxation
 The Stability and Growth Pact and the coordination of
macroeconomic policy

3. The EU budget and fiscal transfers
 Revenues
 Expenditures
 Net-payer positions



4. Agricultural subsidies and policies in the EU
 Price support
 Set aside
 Output subsidies
 Income subsidies
 Renewable resources and the future of agriculture
5. Cohesion (regional) Policy
 Objectives, instruments and principles of regional policy
 Structural funds and their effects
 Changes introduced by Agenda 2000
 Effectiveness of EU cohesion policy
6. Monetary Integration in the EU
 Why monetary integration?
 The development of monetary integration in the EU
 The theory of optimum currency area

7. Single European Market
 Movement of capital
 Movement of labor

8. Competitiveness in the EU
 Industry policy
 The ‘Lisbon Strategy’
 The EU in the world economy; International competitiveness of the
EU
 Current economic problems of the EU (ageing societies, financial
markets, etc.)

9. Enlargement of the EU
 Enlargement process
 Economic consequences of the Eastern enlargement

10. Understanding Turkey’s Relations with EU
 History
 Current situation

11. Customs Union Between Turkey and EU
 Costs vs. benefits

Each week 2/3 groups will present their papers.

Students must send to the lecturer
(pinar.emirhan@deu.edu.tr) their powerpoint
presentations at least 3 days prior to their
presentations, otherwise 5 points will be
deducted from their presentation grades.

The deadline for paper submission is January 11,
2013.

Papers will be submitted in both printed form
and in a CD. (All papers will be uploaded to
TURNITIN.)

Each group will choose a subject from the list provided and will
prepare a 20/30 minute presentation.

During the presentation, the groups can use any technical
presentation aid they consider necessary (projector, PowerPoint,
internet-based material, song-and-dance, etc.), providing this
does not distract the audience from the points made and the
facts presented, and do not extend the presentation to beyond
20/30 minutes.

The presentation should be fact-based and well organized. Each
presentation must conclude by drawing contending
interpretations, highlighting the signification of the issue,
presenting their opinion on the issue, etc.

Each presentation will be followed by a 10/15 minute comments
and question session involving the other students. Everybody
will have to comment, question or add to the presentation.
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