International Economics and Development Economics

Why are some countries rich while some are poor? The closely linked research areas Development Economics and International Economics aim at answering questions related to this overarching issue. International Economics deals with the causes and consequences of economic transactions – such as trade and foreign direct investment – between countries. Development Economics concerns specific questions about developing countries' problems and their causes. Both domestic and international factors are analyzed, such as market imperfections, formal and informal institutions, economic policy, and aid.