ECON 3526 - The Economics of European Integration

North Terrace Campus - Winter - 2019

The course analyses European economic integration. The main focus is on applying economics, especially trade and open economy macro theory, but also public finance and microeconomics. The course outline is roughly chronological: the first half covers establishment of the customs union and initial steps towards monetary union, and the second half analyses the deeper and wider EU integration since the late 1980s. Although attention is paid to the historical and institutional background and the political economy of decision-making in Europe, it is an applied economics course, not international relations or narrative history. Students should review economics principles. Concepts such as elasticity, arginal revenue, marginal cost, price discrimination, consumer and producer surplus, externalities, public goods, multiplier effects, etc. will be utilized extensively in the analysis.

  • General Course Information
    Course Details
    Course Code ECON 3526
    Course The Economics of European Integration
    Coordinating Unit Economics
    Term Winter
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Intensive course taught over three weeks, with up to 15 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ECON 2506 or ECON 7200 or equivalent
    Assessment Typically, assignments, paper and presentation, final exam
    Course Staff

    Course Coordinator: Professor Richard Pomfret

    Lecturer: Professor Richard Pomfret
    Location: Room 530, Level 5, Nexus 10 Building
    Phone:    8313 4751
    Tutor:     Mia Tam
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    A winter semester course includes 36 contact hours. Students are expected to attend all classes. Note also that the expected reading is similar to that for a normal full semester.

    Lectures and seminars will be held at 11am - 1 pm on Monday, Tuesday, Wednesday, Thursday and Friday. 

    Tutorials are daily except for Monday 8 July, Wednesday 17 July and Friday 26 July.

    There is a 90-minute mid-term test on Wednesday, 17 July, and a two-hour final examination on Friday 26 July.
  • Learning Outcomes
    Course Learning Outcomes
    The University of Adelaide is a research-intensive university, which seeks to develop graduates of international distinction by supporting high quality education. The University of Adelaide provides an environment where students are encouraged to take responsibility for developing the graduate attributes listed below. Achievement of the first two attributes is primarily assessed in two in-class examinations. The exams test analytical thinking, use of evidence, and ability to apply the analysis to assess alternative social and policy outcomes. Additionally, the continuing development of good inter-personal and communication skills is widely recognized as important for all graduates, and this course seeks to develop students’ abilities to make oral contributions to their tutorial group, and to write three short analyses/reports based on assigned reading material.

    On successful completion of this course, students will be able to:
    1. Describe the main concepts used to explain the process and present situation of European economic integration.
    2. Identify how economic ideas and theories have informed economic policy.
    3. Identify and analyse historical developments which enhance our understanding of contemporary economic conditions.
    4. Compile and judge relevant quantitative and qualitative information about the European economic integration in a range of formats from a variety of sources.
    5. Discuss and communicate, in particular present, economic topics in a clear, concise and competent manner.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
  • Learning Resources
    Required Resources
    We will draw mainly on two textbooks:
    Richard Baldwin & Charles Wyplosz: The Economics of European Integration 5th. ed. (McGraw-Hill, 2015) - BW in the reading list 

    Mark Gilbert: European Integration: A concise history (Rowman & Littlefield, 2012)

    The Baldwin-Wyplosz book focuses on economic analysis, and the Gilbert book provides an historical narrative.

    Students are expected to have read both books before the final exam.

    The course does not precisely follow the chapter order of these books. Students are expected to read assigned chapters before tutorials.
    Recommended Resources
    For more detailed analysis of the economics of regional trading arrangements see:
    Richard Pomfret: The Economics of Regional Trading Arrangements (Clarendon Press, Oxford, 1997; paperback edition with new Preface, Oxford University Press, Oxford, 2001).
    Also available through Oxford Scholarship Online at - 7/toc.html.

    Additional readings will be posted on MyUni.

    The final exam consists of essay questions; the more widely you read (and think about the readings), the more likely you are to write better essays.
    Online Learning
    The overheads from the lectures and selected optional reading materials will be available on MyUni.
  • Learning & Teaching Activities
    Learning & Teaching Modes

    No information currently available.


    No information currently available.

    Learning Activities Summary

    The course outline is roughly chronological: week 1 on 1950 until the 1970s, week 2 the 1980s and 1990s, and week 3 the twenty-first century. It is, however, an applied economics course, not international relations or narrative history. The analytical structure focuses on applying economic theory, especially trade and open economy macro/international finance, but also public finance and micro topics related to harmonizing competition policy, regulation, etc.

    Schedule and Readings
    Week 1- Gilbert Chapters 1-5
    Monday 8 July Lecture European integration - origins, issues and timelines BW Chapter 1
    Tutorial No tutorial
    Tuesday 9 July Lecture Customs union: common commercial policy and CAP BW Chapter 4 and 9.1
    Tutorial Effects of a tariff and equivalent trade barriers
    Wednesday 10 July Lecture The first enlargement: trade creation and trade diversion BW Chapter 5-6
    Tutorial Trade creation and trade diversion - BW Figure 5.4 and p141 question 2
    Thursday 11 July Lecture External economic relations: the pyramid of preferences and GMP BW Chapter 12
    Tutorial Imperfect competition - BW p.161 questions 4-5
    Friday 12 July Lecture The Road to EMU (The Snake, and EMS) BW Chapter 13-15
    Tutorial Trade policy towards non-members- BW, p295, question 4-5
    Written Assignment 1 due (CU theory) Week 2- Gilbert Chapters 6-8
    Monday 15 July Lecture Challenges in the 1970s and 1980s (budget, VERS) BW- Chapters 7-11
    Tutorial The Impossible Trinity - BW p.322 questions 6-7
    Tuesday 16 July Lecture Creating the Single Market; Schengen BW- Chapters 7-11
    Tutorial Review of EU micro policies and their relation to macroeconomic policies up to 1986
    Written Assignment 2 due (Deep Integration)
    Wednesday 17 July Lecture Mid-term test
    Tutorial No tutorial
    Thursday 18 July Lecture The Fall of the Wall; German reunification; monetary union BW Chapters 16-17
    Tutorial Review of Mid-term test
    Friday 19 July Lecture The EU in the World Economy (WTO;GVS) BW Chapter 12 (again)
    Tutorial Optimum currency areas and the Euro
    Week 3- Gilbert Chapter 9
    Monday 22 July Lecture Enlargement from 15-28 BW Chapters 2-3
    Tutorial The Stability Pact, p.443-4 questions 1-10
    Tuesday 23 July Lecture Financial Crises and PIGS BW Chapters 18-19
    Tutorial How did the 2004 enlargement affect the growth of GVCs within Europe
    Written Assignment 3 due (Monetary Union)
    Wednesday 24 July Lecture Migration, Refugees and the Future of Schengenland BVW Chapters 7-8
    Tutorial Use figure 8.12 to analyze the impact of the 2004 enlargement on the EU labour markets
    Thursday 25 July Lecture Brexit TBA
    Tutorial Revision
    Friday 26 July FINAL EXAM
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary

    Assessment Task Task type Due Weighting
    Tutorial assignments (three) and class participation Summative various 20%
    Mid-term test (90 minutes) Summative 17 July 2019 30%
    Final exam (120 minutes) Summative 26 July 2019 50%

    Assessment Detail
    Students are expected to hand in three sets of assignments, each worth 5%, and to prepare for and participate in tutorial discussion (worth 5%).

    The mid-term test, whose format and content will be announced in class and posted on MyUni, is intended to provide feedback on students’ progress over the first half of the course.

    The final examination requires students to write extended essay-style answers to two questions. Sample exam questions will be posted on MyUni. The final exam will cover the entire course. All material from the classes and required readings is examinable; wider reading and deeper thinking are likely to be rewarded by higher grades. Students’ work will be assessed on the logical quality of the arguments presented and on the ability to determine which arguments better explain the facts. Legible hand-writing and the quality of English expression are integral parts of the assessment process; marks cannot be awarded in the final examination for answers that cannot be read or understood.

    Students may NOT take a DICTIONARY (English or English-Foreign) or a CALCULATOR into either the mid-semester test or the final examination.

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

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    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy ( course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

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  • Policies & Guidelines
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