Trade & investment: evidence-based policies for development from Coursera

This MOOC prepares students that want to analyse trade and investment policies of developing countries and emerging markets. We couch you for the task of giving evidence-based policy. For students interested in policy advise the course brings a sound understanding of what can and what cannot be done with well-established theories and state-of-the-art research. For students interested in research the asset of this course is to learn how to effectively communicate research findings in a policy setting.

Upon completion, you will have a good understanding of international trade and investment theories and recent developments in the world economy and their consequence on issues related to developing countries and emerging markets. You will be able to analyse the determinants of trade and investment, to measure the impact of trade and investment and to provide evidence-based policy advice that fits development strategies in emerging markets and developing economies.

What's inside

Syllabus

Theories of globalization, trade and investment

After the first week (5 video lectures), you will understand key concepts and theories of international trade and foreign direct investment (FDI) and describe recent trends in the world economy. With the debate over (de)globalization and development as our starting point, we analyze how (changes in) the economic context drive the formulation of new trade theories. We will discuss both mainstream and a selection of heterodox approaches. We explore concepts and theories related to FDI, provide an overview of FDI effects for host countries and discuss theories explaining investment activities across national boundaries.

Trade and investment policies

After the second week (4 video lectures) you will be able to identify national policies aimed at either stimulating or restricting international trade and investment. We discuss policies and instruments against the background of recent developments and provide context to the importance of negotiations and treaties that deal with policy instruments. You will be able to analyse where the use of bilateral economic diplomacy in state-to-state relationships can help to assist domestic companies as encounter difficulties abroad and where the contribution of economic diplomats is limited

Micro: Trade and productivity

After the third block (3 video lectures) you will understand the nature of internationalization, heterogeneity, and development from a micro-economic perspective. We will discuss productivity development of firms and their decision to export and import and deal with access to detailed and reliable micro-economic data sets. You will understand the microeconomic underpinnings of globalization and productivity and the process of measuring productivity development and firm heterogeneity. You will also be able to evaluate the relationship between productivity and international trade and FDI and understand the relevance of heterogeneity across firms and their productivity development and interpret their results.

Macro: Analytical tools and modelling

After the fourth block (4 video lectures) you will understand analytical tools and gravity modelling dealing with evaluation of trade and/or investment policies. The Block starts with Balassa’s index of revealed comparative advantage, the Herfindahl Hirschman concentration index, and the Grubel Lloyd index that measures intra-industry trade. You will be able to apply these indicators and relate them to real-world trade issues. Next, we discuss the historical development of the gravity model, which was originally developed in the Netherlands. Finally, you will be able to evaluate challenges and propose solutions to obtain reliable estimates of gravity modelling. Building on solutions proposed to avoid empirical gravity estimation biases, you will experience and experiment with evaluations of trade policies, dealing with time and cost of border documentation and processing for exporting and importing.

Giving evidence based policy advice

The fifth week (3 video lectures) prepares you for actually writing a policy paper that is both accessible to policy makers, and evidence-based. We start with an overview of controversies regarding international trade and investment because policy advice needs to take a holistic view and a policy paper cannot be sound when only the benefits of considered measures are discussed. You will learn the five do’s of giving advice and how to effectively inform policy makers of scientific findings regarding trade and investment.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Taught by global economics and finance experts from the World Bank and Harvard University

Covers a wide range of topics, from globalization theories to investment analysis

Provides real-world case studies and examples

Emphasis on evidence-based policy advice

Includes interactive exercises and assignments

Prerequisites: Basic knowledge of economics and econometrics

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Trade & investment: evidence-based policies for development with these activities:

Form a Study Group with Classmates

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Participating in a study group can foster collaboration, improve understanding, and provide a supportive learning environment.

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Reach out to classmates and form a study group of 3-5 individuals.
Establish regular meeting times and set clear goals for each session.
Review course materials together, discuss concepts, and solve problems collaboratively.
Provide feedback and support to one another.

Review Concepts of International Finance

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Brushing up on international finance principles will provide a solid foundation for understanding the financial aspects of trade and investment.

Browse courses on International Finance

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Review textbooks or online resources on international finance.
Focus on topics such as exchange rates, balance of payments, and international monetary systems.

Practice Gravity Model Calculations using the World Bank's DataBank

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Engaging with guided tutorials on gravity modeling and applying them to real-world data will provide practical experience and reinforce your understanding of how to analyze trade and investment flows.

Browse courses on Analytical Tools

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Access the World Bank's DataBank and identify relevant datasets.
Follow step-by-step tutorials to calculate gravity model variables and estimate the model.
Interpret the results and evaluate the model's fit.

Two other activities

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Attend a Trade and Development Conference

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Attending a conference will provide opportunities to engage with professionals, gain insights into cutting-edge research, and broaden your network in the field of trade and development.

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Research and identify relevant conferences focused on trade and development.
Attend sessions and presentations on topics of interest.
Network with speakers, attendees, and potential collaborators.
Follow up with individuals you met and explore opportunities for collaboration.

Develop a Microeconomic Model of a Developing Economy

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Creating a microeconomic model will allow you to apply the concepts and theories learned in the course to a practical scenario, deepening your understanding of firm-level dynamics in developing economies.

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Define the scope and purpose of your model, considering the specific characteristics of a developing economy.
Identify the key variables, assumptions, and relationships to be included in the model.
Develop equations and algorithms to represent the model's behavior.
Test and refine the model using real-world data or hypothetical scenarios.
Write a report or presentation summarizing your model's findings and implications.

Career center

Learners who complete Trade & investment: evidence-based policies for development will develop knowledge and skills that may be useful to these careers:

Trade Policy Analyst

Trade Policy Analysts work in government and private firms to advise on trade policy. This course may be useful to you because it will help you build a foundation in analyzing the impact of trade policies on developing countries and emerging markets.

See salaries and explore the career path for Trade Policy Analyst

International Development Specialist

International Development Specialists work with governments and non-profits to improve the lives of people in developing countries. This course may be helpful to you because it helps you understand international trade and investment policies on development strategies in emerging markets and developing economies.

See salaries and explore the career path for International Development Specialist

Policy Analyst

Policy Analysts conduct research to advise on public policy. This course may be useful to you because it prepares you to give evidence-based policy advice on trade and investment policies. This course will also help you understand how to analyze the impact of trade and investment policies on development strategies in emerging markets and developing economies.

See salaries and explore the career path for Policy Analyst

Trade and Customs Officer

Trade and Customs Officers ensure that goods comply with regulations and tariffs. Thsi course may be useful to you because it can prepare you for challenges in working with economic diplomacy and bilateral agreements.

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Investment Banker

Investment Bankers help companies raise capital and advise on mergers and acquisitions. This course may be useful to you because it will provide you with knowledge of foreign direct investment and its impact on developing countries and emerging markets.

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International Relations Specialist

International Relations Specialists work with governments and non-profits to promote international cooperation. This course may be useful to you because it provides you with the understanding of trade and investment policies and their impact on developing countries and emerging markets.

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Government Relations Specialist

Government Relations Specialists are employed by corporations and non-profits to advocate for their interests in government. This course may be helpful to you because it provides you with knowledge of trade and investment policies and their impact on developing countries and emerging markets.

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Economic Consultant

Economic Consultants provide expert advice to businesses and governments on economic issues. This course may be useful to you because it can help you build a foundation in international trade and investment policies and their impact on developing countries and emerging markets.

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Economist

Economists study the production, distribution, and consumption of goods and services. This course may be useful to you because it helps build a foundation in international trade and investment theories and their impact on the world economy.

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Business Development Manager

Business Development Managers work with companies to develop and implement growth strategies. This course may be useful to you because it can help you build a foundation in understanding international trade and investment policies, which will give you insight into global business opportunities.

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Sustainability Analyst

Sustainability Analysts work with companies and governments to develop and implement sustainability strategies. This course may be useful to you because it helps build a foundation in understanding international trade and investment policies, giving you the insight into the impact of trade and investment on environmental, social, and economic sustainability.

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Financial Analyst

Financial Analysts evaluate the financial health of companies and make investment recommendations. This course may be useful to you because it helps build a foundation in analyzing trade, investment policies, and their impact on global markets.

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Sales Representative

Sales Representatives sell products and services to businesses and consumers. This course may be useful to you because it will help you understand international trade and investment policies, giving you the ability to evaluate overseas sales opportunities.

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Market Research Analyst

Market Research Analysts provide insightful data to companies to inform business decisions. This course may be helpful to you because it helps build a foundation in analyzing trade and investment policies and their impact on global markets.

See salaries and explore the career path for Market Research Analyst

International Economist

International Economists work with government agencies, research and development companies, and global organizations to analyze global economic trends. This course may be useful to you because it prepares you to analyze trade and investment policies in developing countries and emerging markets. This can be important for an International Economist who will be examining the global marketplace.

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