Department of Economics

MIM 513: Pacific Rim Economies, Trade, and Financial Markets (Fall, 2013)

Homework #3 is available

It is due on 11/13

Course Time and Place: Wednesday 17:30 – 22:00 & BA 140

Instructor: Hiro Ito, Professor of Economics

Office: Cramer Hall 241-F

Email: ito@pdx.edu

Phone: x5 – 3930

Office Hours: W 15:00 – 17:00 at Cramer Hall 241-F, or by appointment

The course syllabus is available here.

Points to be covered in the presentations

Course Material

There will be a required reading packet that is available at:

Clean Copy

1704 SW Broadway

(503) 221-1876.

Other lecture notes and copies of journals and newspaper/magazine articles are occasionally distributed posted on this website.

It is suggested that students develop the habit of reading newspapers and journals such as The Financial Times and The Economist.

Lecture Notes

Lecture 1: International Economics

Lecture 2: Japanese experience 1

Lecture 3: Japanese experience 2

Lecture 4: Chinese experience 1

Lecture 5: Chinese experience 2

Lecture 6: Korean experience

Readings

Mosk on the Japanese economy

Homework assignments

Homework #1

Homework #2

Homework #3

Class schedule and reading assignments

The class schedule and reading assignments shown below are subject to change, although the dates for the presentations will not change. The class proceeds under an assumption that you have read the assigned chapters and attempted to understand the material before the class. However, you should not feel shy about asking questions in class if you do not understand the material. It is important to raise issues and discuss them in class. I will do my best to encourage for you to do so. You should also make the most use of office hours to consult with me on the course material.

“(RP)” means the articles/papers can be found in the reading packet. “(HB)” means articles from Harvard Business Publishing. The class proceeds with the expectations that you have read all the articles (except for those with “optional”) by the time of the class.

Course Schedule:

In the reading schedule below, “(RP)” means the articles/papers can be found in the reading packet. “(HB)” means articles from Harvard Business Publishing. The class proceeds with the expectations that you have read all the articles (except for those with “optional”) by the time of the class.

Week 1	Introduction (10/2) Theories of International Economics: Comparative Advantage Exchange Rate Mechanism Reading: Baumol and Blinder Ch. 33, 34, & 35 (RP)
Week 2	Japan’s experience: Keys to High Growth (10/9)
	Presentation 1: Honda and Japan’s industrial policy Presentation 2: Sanyo Reading: Mosk Ch. 10 & 11 (RP) Wells, “Japan: The Miracle Years” (HB) Reading for Sanyo 1 Reading for Sanyo 2 Reading for Honda
Week 3	Japan’s Bubble and Its Bust (10/16)
	Presentation 3: LTCB and Japan’s banking crisis Presentation 4: Livedoor: Who owns a firm in Japan? First takehome quiz due Readings: Vietor, “Japan: Deficits, Demography, and Deflation” (HB)
	Krugman, “Japan’s Trap” (RP)
	Blanchard, excerpt from Macroeconomics Japanese Lessons, The Economist, August 4, 2012 Readings for LTCB and Japan’s banking crisis http://www.fundinguniverse.com/company-histories/long-term-credit-bank-of-japan-ltd-history/ http://www.nytimes.com/2004/01/17/business/shinsei-bank-will-be-listed-on-tokyo-stock-exchange.html Readings for Livedoor http://www.economist.com/node/5444987 http://www.economist.com/node/5466931
Week 4	China’s Economic Development (10/23)
	Presentation 5: Huawei Presentation 6: Lenovo and the government Readings: Chow, p. 24 – 67 (RP) Spar and Oi (2006) “China: Building ‘Capitalism with Socialist Characteristics’” (HB) http://youtu.be/PhRmC6QbL6c Reading for Lenovo
Week 5	China and the World Economy (10/30)
	Presentation 7: China Investment Corporation Presentation 8: QE3, The Euro Crisis, and China Second takehome quiz due Readings: Vietor, “China Unbalanced” (HB) Optional readings: The Economist: Special report on the Chinese economy, May 26, 2012 Readings for CIC: http://www.economist.com/node/14116418?zid=300&ah=e7b9370e170850b88ef129fa625b13c4 http://dealbook.nytimes.com/2008/01/29/what-you-didnt-know-about-sovereign-wealth-funds-2/?_r=0 Materials for the presentation on QE: Article: http://www.economist.com/node/21558596?fsrc=scn/tw_ec/qe_or_not_qe_ Video: http://www.economist.com/blogs/schumpeter/2012/09/economist-explains
Week 6	Korea’s Experience (11/6)
	Presentation 9: “The IMF Crisis” Presentation 10: Korean IT revolution Readings: Huang, “On the Back of a Tiger” (HB) Krugman, “Asia’s Crash” (RP) Pill, “Financial Crisis in Asia: 1997-98” (HB) Alfaro and Kim, “Transforming Korea Inc.: Financial Crisis and Institutional Reform” (HB) The Economist Special on “Koreas”, October 26, 2013 Reading for the ‘IMF Crisis’: http://www.nytimes.com/2011/01/07/world/asia/07seoul.html?_r=0 Reading for Korean IT revolution: IT Korea: Past, Present, and Future
Week 7	Asia Now (11/13)
	Presentation 11: Hon Hai Precision Industry Foxconn Presentation 12: The Economy of Vietnam Reading on Foxconn: http://www.clb.org.hk/en/content/wages-china Video on Foxconn: http://www.youtube.com/watch?v=h1_XAuJ8qCc Reading on the Vietnamese economy 1 Reading on the Vietnamese economy 2 Video for the Presentation on the Vietnamese economy: http://www.bbc.co.uk/news/business-23340763 Third takehome quiz due Readings: TBA

November 12, 2013