International Economics deals with the causes and consequences of economic transactions – such as trade and foreign direct investment – between countries.
Why are some countries rich while some are poor? Development Economics and International Economics are two closely linked fields of Economics, aimed at answering questions that are related in various ways to this overarching issue. Courses at the undergraduate and graduate level and research in these two fields play an important role at the Department of Economics.
International Economics deals with the causes and consequences of economic transactions – such as trade and foreign direct investment – between countries. There is a tradition at the Department for studying these issues in relation to European economic integration. Current research deals with what determines firms’ decisions concerning export behavior and investment, and how to explain trade dynamics at an aggregate country level. On-going research also addresses the importance of transportation costs and various forms of non-traditional trade barriers, as well as globalization in a broader sense.
Development Economics concerns specific questions about developing countries' problems and their causes. Both domestic and international factors are analyzed, such as market imperfections, formal and informal institutions, economic policy, and aid. Some of the current research in Development Economics at the Department focuses on issues relating to inequality, globalization and health. Other on-going research has its focus on China and the transformation of economic systems, as well as the mechanisms explaining the success of economic reform strategies.