The Central and Eastern European Countries (CEEC) in the Global Economy
Winter Term 1995
Jochen Lorentzen
Department of European Studies
Central European University

Course Outline

This course discusses international trade and investment flows, and how they affect CEEC. Particular attention is given to the relationship between the CEEC and the European Union in the context of enlargement and association. The course aims to provide a background for advanced discussions of options for and constraints on CEEC foreign economic policymaking.

The course is assessed on the basis of a mid-term paper and a final two-hour in-class exam which will give the choice of a number of short essay questions.


1. Introduction: Global Trade æ Issues, Conflicts and Perspectives

Required reading:
Gilpin, Robert. 1987. The Political Economy of International Relations. Princeton: PUP. Chap. 5.
Calleo, David. 1991. The Bankrupting of America. New York: Morrow. Chaps 1,6.

Of related interest:
Cowhey, Peter F. and Jonathan D. Aronson. 1993. Managing the World Economy: The Consequence of Corporate Alliances. New York: Council on Foreign Relations.
Jackson, John. 1989. The World Trading System. Cambridge: MIT.
Jackson, Tim. 1993. The Next Battleground: Japan, America, and the European Market. New York: Houghton Mifflin.
Milner, Helen, 1988. Resisting Protectionism: Global Industries and the Politics of International Trade. Princeton: PUP.
Tyson, Laura d'Andrea. 1992. Who's Bashing Whom? Trade Conflict in High-Technology Industries. Washington: Institute of International Economics.

2. Theories of International Trade

Required reading:
Bhagwati, Jagdish. 1991. The World Trading System at Risk. New York: Harvester Wheatsheaf. Chaps 1-5.

Of related interest:
Kindleberger, Charles. 1978. Government and International Trade. Princeton: International Finance Section.
Krasner, Stephen. 1976. State Power and the Structure of International Trade. World Politics 28 (April): 317-47.
Krugman, Paul, ed. 1986. Strategic Trade Policy and the New International Economics. Cambridge: MIT.

3. International Trade in CEEC

Required reading:
Köves, András and Paul Marer. 1991. Economic Liberalization in Eastern Europe and in Market Economies. Chap. in Foreign Economic Liberalization, eds András Köves and Paul Marer. Boulder, CO: Westview.
Ostry, Silvia. 1993. The Threat of Managed Trade to Transforming Economies. Occasional Papers no.41. Group of Thirty, Washington.
Richter, Sándor. 1990. Hard Currency Settlement of Payments or Bilateralism and Clearing: How Long Will the Dilemma Remain? In The Challenge of Simultaneous Economic Relations with East and West, eds Michael Marrese and Sándor Richter, 5-22. London: Macmillan.


4. Globalisation in the 1980s
Required reading:
Julius, DeAnne. 1991. Foreign Direct Investment: The Neglected Twin of Trade. Occasional Papers no.33. Group of Thirty, Washington.
Stopford, John and Susan Strange. 1991. Rival States, Rival Firms. Cambridge: CUP. Chaps 1-2.

Of related interest:
O'Brien, Richard. 1990. Global Financial Integration: The End of Geography. London: Pinter.
Porter, Michael. 1990. The Competitive Advantage of Nations. New York: Free Press.
Thomson, Stephen and Stephen Woolcock. 1993. Direct Investment and European Integration. London: Pinter.

5. Foreign Direct Investment in CEEC
Required reading:
OECD. 1993. Foreign Direct Investment in Selected Central and Eastern European Countries and New Independent States. Paris.


6. CMEA-EC Relations
Required reading:
Rejoined. 1993. Survey of Eastern Europe. The Economist, 13 March.
Senior Nello, Susan. 1990. Some Recent Developments in EC-East European Economic Relations. Journal of World Trade 24, no.1: 5-24.

7. Association and EU Enlargement
Required reading:
Messerlin, Patrick A. 1993. The EC and Central Europe: The Missed Rendez-vous of 1992? Economics of Transition 1, no.1: 89-109.
Rollo, Jim and Alasdair Smith. 1993. The Political Economy of Eastern European Trade with the European Community: Why so Sensitive? Economic Policy 16 (April): 139-181.

CRC-Curriculum Resource Center
CEU Budapest, Hungary
Modified: April, 1996


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