30 Apr WHAT ARE THE NON-ECONOMIC REASONS FOR OPPOSING FREE TRADE, E.G. NATIONAL SECURITY?
Examine EU growth in terms of its determinants (q =A f (k, h, i, r)). Explain how liberalization of trade, the formation of the single market and the creation of monetary union should impact on this process. What do you think are the prospects for growth in the EU and in particular the euro zone in the next few years?
NO REFERENCES NEEDED as this is an opinion essay.
The question has three parts: you need to address all three parts but not equally.
In the first part you need to discuss, in a common-sense way, physical capital, human capital, institutions and natural resources. There is NO need to include the Solow model, except to make reference to it if you wish.
Questions to be discussed in classes next week (all relate directly to essay)
In looking at the growth performance on an economy should we use Q, Q/P or Q/E? Why?
Can you explain how Q/E is influenced by A, k, h, r and i? Give examples of each
Why can free trade blocs, like the EU, enhance living standards?
But how do you address issue of many people losing from these agreements?
What are the non-economic reasons for opposing free trade, e.g. national security?
Is continuous innovation/invention possible indefinitely do you think?
Is it a waste of time trying to predict future growth? And future problems/prospects as well?
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