INTERNATIONAL INDUSTRIAL ECONOMICS

The course will focus on the Industrial and International Economics topics with a focus on reassessment and reflection in light of GVCs

1) Knowledge and understanding
Acquire the basic concepts of the industrial economy in an international context.
Know the main models of analysis of the industrial and international economy.
Understand and critically consider the main economic policies regarding technological innovation and industrial policy.
Knowing and knowing how to use data related to the international context in the industrial field.
2) Ability to apply knowledge and understanding
Use the concepts learned to interpret the evolution of international industrial economic systems, public policies, business strategies and market regulation in relation to the international industrial economy.
3) Ability to judge
Knowing how to formulate and argue interpretative hypotheses on the development of technologies and the consequent effects on economic agents
4) Communication skills: the student must be able to synthesize the acquired knowledge in an efficient and coherent way.

Basic knowledge of micro and macro-economics.
Module 1 in International Industrial Economics

The program consists of different blocks:
I. Industrial economics. Review of some basic economics
II. Internationalization of production
III. Global Value Chain
IV. National and International Industrial Policy
V. Topics

Contents of single lectures will be:
1. What is Industrial economics
• Armstrong, Mark, and Robert H. Porter, eds. Handbook of industrial organization. Vol. 1,2 and 3. Elsevier, 2007.
2. International Industrial Economics and Globalization
• Grossman, G. M., & Helpman, E. (2015). Globalization and growth. The American Economic Review, 105(5), 100-104.
3. Microeconomics background: From cost function to production function
4. Concentration index and definition of the relevant market (M_intro)
• Verouden V. (2004), Concentration Indices and Market Shares in the EU Horizontal Merger Guidelines, FTC and U.S. DOJ Merger
Enforcement Workshop, Washington, DC, February 17-19, 2004.
5. The economics of Market Power
6. Stragetic behaviour, price competition, product diffferentiation
7. Firm’s size and Vertical integration
• Perry, M.K. ‘Vertical Integration: Determinants and Effects’, in Schmalensee, R. and R. Willig (eds) Handbook of Industrial
Organization, volume 1. (Amsterdam: North-Holland, 1989).
• Kumar, Krishna B., Raghuram G. Rajan, and Luigi Zingales. What determines firm size?. No. w7208. National Bureau of
Economic Research, 1999.
• Lafontaine and Slade ‘Vertical Integration and Firm Boundaries: The Evidence’, Journal of Economic Literature (2007) 45(3),
pp.629–685.
8. Industrial Economics: SCP paradigm and New Industrial Economics
• Ralston, Peter M., et al. "A Structure–Conduct–Performance Perspective of How Strategic Supply Chain Integration Affects Firm
Performance." Journal of Supply Chain Management 51.2 (2015): 47-64.
9. International Production
• Reinert (see Text), Ch. 9,10
10. MNE
• Reinert (see Text), Ch. 11
• Iammarino, Simona. "Transnational Corporations and International Production. Concepts, Theories and Effects." Regional
Studies 47.2 (2013): 296-297.
11.Working with data. Indexes of international trade openness
12. Clusters and Innovation
13. GVC and local effects
• Gereffi, Gary. "The global economy: organization, governance, and development." The handbook of economic sociology 2
(2005): 160-182.
• Aitken, B.J. and A.E. Harrison (1999) “Do Domestic Firms Benefit from Direct Foreign Investment? “American Economic Review,
89:3, 605–618.
• Blomstrom,M. and F. Sjoholm (1999) “Technology Transfer and Spillovers: Does Local Participation with Multinationals Matter?”
European Economic Review, 43:4–6, 915–923.
• Kugler, M. (2006) “Spillovers from Foreign Direct Investment: Within or between Industries?” Journal of Development
Economics, 80:2, 444–477.
14. GVC: upgrading process and measurement issues
• Gereffi, Gary; John Humphrey and Sturgeon, Timothy. 2005. “The Governance of Global Value Chains.” Review of International
Political Economy. 12(1): 78-104.
• Gereffi, Gary, John Humphrey, and Timothy Sturgeon. "The governance of global value chains." Review of international political
economy 12.1 (2005): 78-104.
15. Topics
• Empirics in Industrial Economics
• Policies
• Industry 4.0
• Convergence: media, telecom, digitalization
• Product space and complexity
• Industry 4.0: effect on labour requirements
• Reshoring

Reinert Kennet A., AN INTRODUCTION TO INTERNATIONAL ECONOMICS, New Perspectives on the World Economy, Cambridge University Press.
Additional readings are:
Armstrong, Mark, and Robert H. Porter, eds. Handbook of industrial organization. Vol. 1,2 and 3. Elsevier, 2007.
Grossman, G. M., & Helpman, E. (2015). Globalization and growth. The American Economic Review, 105(5), 100-104.
Verouden V. (2004), Concentration Indices and Market Shares in the EU Horizontal Merger Guidelines, FTC and U.S. DOJ Merger
Enforcement Workshop, Washington, DC, February 17-19, 2004.
Perry, M.K. ‘Vertical Integration: Determinants and Effects’, in Schmalensee, R. and R. Willig (eds) Handbook of Industrial
Organization, volume 1. (Amsterdam: North-Holland, 1989).
Kumar, Krishna B., Raghuram G. Rajan, and Luigi Zingales. What determines firm size?. No. w7208. National Bureau of
Economic Research, 1999.
Lafontaine and Slade ‘Vertical Integration and Firm Boundaries: The Evidence’, Journal of Economic Literature (2007) 45(3),
pp.629–685.
Ralston, Peter M., et al. "A Structure–Conduct–Performance Perspective of How Strategic Supply Chain Integration Affects Firm
Performance." Journal of Supply Chain Management 51.2 (2015): 47-64.
Iammarino, Simona. "Transnational Corporations and International Production. Concepts, Theories and Effects." Regional
Studies 47.2 (2013): 296-297.
Gereffi, Gary. "The global economy: organization, governance, and development." The handbook of economic sociology 2
(2005): 160-182.
Aitken, B.J. and A.E. Harrison (1999) “Do Domestic Firms Benefit from Direct Foreign Investment? “American Economic Review,
89:3, 605–618.
Blomstrom,M. and F. Sjoholm (1999) “Technology Transfer and Spillovers: Does Local Participation with Multinationals Matter?”
European Economic Review, 43:4–6, 915–923.
Kugler, M. (2006) “Spillovers from Foreign Direct Investment: Within or between Industries?” Journal of Development
Economics, 80:2, 444–477.
Gereffi, Gary; John Humphrey and Sturgeon, Timothy. 2005. “The Governance of Global Value Chains.” Review of International
Political Economy. 12(1): 78-104.
Gereffi, Gary, John Humphrey, and Timothy Sturgeon. "The governance of global value chains." Review of international political
economy 12.1 (2005): 78-104.

For attending students, there is the possibility to do an individual paper or a group work. In this case the final grade will be composed by:
40% Individual or Group work
20% Class participation and in-class assessment
40% Final exam

For non attending student, there will be a final written examination.

The written examination will be structured as:
3 multiple choice questions, one numerical question, one open question.

Lectures
Homeworks
In-class presentation

English

written