MSc Development Finance

Year of entry: 2024

Course unit details:
Trade Theory and Development

Course unit fact file
Unit code MGDI60291
Credit rating 15
Unit level FHEQ level 7 – master's degree or fourth year of an integrated master's degree
Teaching period(s) Semester 1
Available as a free choice unit? Yes


The course will cover standard trade theories as well as applications of these theories to developing countries.


The aim of the course is to provide analytical techniques to gain insight into international trade theory, trade policy tools and their implications for growth and development. Upon the completion of this course students will have a good understanding of trade theories, international trade policies, and their consequences on many issues in developing countries. The first half of the course will provide an in-depth analysis of main trade theories. This section aims to equip students with the skills to use trade theories to understand the impact of different trade policies and economic factors on economy. The second half of the course will focus on the practical aspects of the in international trade, and the effect of different trade policies on economic growth and development.

Learning outcomes

Knowledge and understanding
On successful completion of this unit students will:
- be expected to demonstrate a good understanding of the main trade models, their assumptions, implications, and differences among different theories
- be expected to use trade theories to provide an analytical discussion of the impact of a trade policy

Intellectual skills
- Students will be able to develop a critical understanding of the role of trade flows in promoting economic growth and economic development.

Teaching and learning methods

Lecture and tutorial based.

Assessment methods

Method Weight
Other 80%
Written assignment (inc essay) 20%

Essay - 1500 words (20%)

Data Exercise - 3500 words (80%)


Resit Essay - 3500 words (100%)

Recommended reading

' Krugman, Paul. R. and Obstfeld, Maurice International economics, theory and policy, 8th Edition, Addison, Wesley and Longman, 2009.
- Bernhofen, Daniel, M., Empirical international trade, Edward Elgar Pub. 2010.
- Buffie, E., Trade policy in developing countries, Cambridge University Press, 2001.
- Hoekman, B; Kostecki, M., The Political Economy of the World Trading System: The WTO and Beyond, 2nd Edition, Oxford: Oxford University Press, 2001.
- McCulloch, N; Winters, A; Cicera, X., Trade liberalization and poverty: a handbook, London: Centre for Economic Policy Research, 2001, ISBN 1-898128-62-6
- Srinivasan, T.N., Developing countries and the multilateral trading system: from the GATT to the Uruguay Round and the future, Boulder, Colorado: Westview Press 2000.
- Hoekman, B; Mattoo, A, Development, trade and the WTO: a handbook, World Bank, Washington, 2002.

Teaching staff

Staff member Role
David Ouattara Unit coordinator

Additional notes

GDI Programmes on which course unit is offered:

10 x 2 hour lectures, 5 tutorial sessions

2 hours Revision Lecture

Stata Lab sessions

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