international trade

Course Name: International Trade

Course Code: ECON1086

Assessment: Assignment 2 Report

Weight: 25%

Due date: FRIDAY WEEK 8 (September 20) AT MIDNIGHT

Feedback mode: ONLINE

Learning Objectives Assessed:

Understand how to merge data from various sources, undertake policy analysis, and generate policy briefs. 

This assessment is linked to the following Course Learning Objectives (CLOs):

· Manipulate economic models to analyse real world issues in international trade.

· Analyse the fundamental determinants of the size and pattern of trade to verify its determinants and its effects on the wider economy/welfare.

· Compare and contrast economic and political conditions in poor and rich countries to critically assess the incentives and consequences of trade liberalisation globally.

· Assess the impact of protectionist policies on the welfare in rich and poor countries to decrypt the political economy of trade reform.

Assessment Declaration:

I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations of the  Assessment declaration (Links to an external site.) .

Details:

Instructions for submission:

· Click on  Submit Assignment .

· Click on  Choose File .

· Once you selected your file containing your assignment, click on  Submit Assignment  at the bottom.

 

To answer the assignment questions first get the data follow these steps.

1. This assignment requires you to obtain data from two (2) countries of your choosing over the period 1985-2005.

2. Obtain country-level data on trade (% GDP) and GDP per capita (constant 2010 US$) from the World Bank’s World Development Indicators ( http://databank.worldbank.org/data/source/world-development-indicators (Links to an external site.) ).   

3. Obtain data on industrial pay inequality difference from UTIP-UNIDO ( http://utip.gov.utexas.edu/data.html (Links to an external site.) ).

4. Merge the data using Excel. It is up to you to figure out how to do this!

5. The data does not need to be for the same countries as in Assignment 1. It is up to you what countries you use.

6. DO NOT attach Excel files to the assignment.

7. Keep explanations brief. Policy analysis in applied economics has to be brief. Be precise and to the point, avoid jargon.

 

Assignment 2 (25% of your final grade)

 

QUESTIONS:

*** Follow the instructions above on how to get the data.

*** See Chapter 6 and/or Lecture 6 notes for references.

 

1. Using data from two countries, plot openness versus Industrial Pay Inequality (from UTIP-UNIDO) for each nation. Use two graphs, one for each country. IT’S UP TO YOU TO FIGURE OUT HOW TO DO THIS. (8 marks)

2. Using data from the two countries, calculate the correlation (using excel) between openness and Industrial Pay Inequality (from UTIP-UNIDO) for each nation, respectively. Report and interpret this relationship in approximately 300 words. [Hint: The Theil Index is used as a proxy for the ratio of skilled to unskilled wages in empirical studies]. DO NOT ATTACH YOUR DATA TO THE ASSIGNMENT.  (7 marks)

3. Explain carefully in approximately 500 words whether your data agrees or disagrees with the Stolper-Samuelson Theorem. (Remember to accurately define the theorem and discuss how it applies to your countries).  (10 marks).

 

To download the Assignment Brief please click  here

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Rubric

Assignment 2 S2

Assignment 2 S2
Criteria	Ratings	Pts
This criterion is linked to a learning outcomeQuestion 1 (Graphs)	8.0 Pts Graphs are properly labelled. It is easy to read the axes and to understand the comparison being made. 4.0 Pts Graphs do not clearly depict the comparison being made or they are not properly labelled. 0.0 Pts Graphs do not clearly depict the comparison being made and they are not properly labelled.	8.0 pts
This criterion is linked to a learning outcomeQuestion 2 (correlation coefficients)	2.0 Pts Correlation coefficients for each country are clearly stated. 1.0 Pts Correlation coefficients are not expressed properly. 0.0 Pts Correlation coefficients are not provided.	2.0 pts
This criterion is linked to a learning outcomeQuestion 2 (Explanation)	5.0 Pts Student states the sign of the correlation coefficeint and what this means. Student makes a note of causality between the variables of interest. Causality inferred from correlations is interpreted correctly. The finding is explained in terms of economic theory. 2.5 Pts Student states the sign of the correlation coefficeint and what this means. Student does not clearly make a note of causality between the variables of interest. 0.0 Pts Student states the sign of the correlation coefficient, but does not provide a clear explanation for findings nor discusses causality.	5.0 pts
This criterion is linked to a learning outcomeQuestion 3 (Discussion of theory)	4.0 Pts Student presents a discussion of the theory that is not copied from the textbook or other material, but is rather written in an accessible way. The explanation is also correct and consistent with what is taught in class and in the textbook. 2.0 Pts Student presents a discussion of the theory that is not copied from the textbook or other material. It is, however, inconsistent with what is taught in class and in the textbook. 0.0 Pts Student presents a discussion of the theory that is clearly copied from the textbook or other material, or it is inconsistent with what is taught in class and in the textbook.	4.0 pts
This criterion is linked to a learning outcomeQuestion 3 (Application of theory to countries)	6.0 Pts Student clearly indicates if the theory applies to their countries and why. The answer is driven by the data analysis. Student uses economic intuition from the textbook, lectures, or other sources to back up their interpretation. 3.0 Pts Student clearly indicates if the theory applies to their countries. The answer is consistent with the empirical findings. 0.0 Pts Student indicates if the theory applies to their countries, but the answer is inconsistent with the empirical findings.	6.0 pts
Total points: 25.0