Members of staff are strongly encouraged to undertake research both individually and by pooling their resources in teams and through collaborations with academics abroad. In this respect the Department has created the conditions required for research of the highest academic standard, such as the establishment of adequate research facilities (library, computers, databases etc.), the encouragement of exchange visits with academic institutions abroad and the participation in, and organisation of, international conferences. Furthermore the Department facilitates national and international dissemination of research output through a discussion paper series.All members of the academic staff are actively engaged in research on topics of local and international interest. Emphasis is placed on producing results of high academic standard, publishable in reputable academic journals. Attention is also paid to the investigation of issues pertaining to the Cyprus economy and its relationship with the European Union. The researchers in the Department collaborate with researchers in top universities and research organisations overseas like University College London, Institute for Fiscal Studies, Tilburg University, University of North Carolina, Penn State University, University of Illinois, Tufts University, Vanderbilt University, Carnegie-Mellon University, and others.
The research agenda of Department faculty covers a broad range of topics in theoretical and empirical economics and in econometrics. An important debate in the international literature examines the mechanisms that lead to sustainable economic growth. Members of our faculty contribute to this research programme with the use of sophisticated econometric methods to identify the factors that cause economic growth. Identifying these factors is crucial in formulating the right policies to lift countries out of poverty and into a path of sustained economic growth. Other topics in international economics that are being researched in the Department is the rate of convergence of European economics and international differences in prices of consumer goods.
Research in the field of international trade focus in the following areas: (a) the effects of worker migration on welfare, real wages and public good production, both in the country of origin and in the destination country; (b) economic aid to developing countries, its effects on welfare and employment, and identifying the most effective ways of providing aid; (c) the functioning of international markets in used goods and their contribution to consumer welfare; and (d) the creation of free trade areas and their impact on international trade flows.
Research on consumer economics includes the theoretical development and empirical application of demand systems for the analysis of consumer behaviour and welfare. These systems are used to evaluate the impact on households and their constituent members of various policies such as taxation and child support schemes. In relation to producer behaviour there is ongoing research aiming at the theoretical and empirical analysis of the effects of infrastructure and publicly financed capital on productivity. Other research in the area of firm behaviour examines strategic pricing and quality choice, competition issues, the determinants of exporting activity and productivity gains from exporting.
Research is also pursued on topics of special interest to Cyprus. Some representative topics include: (a) development of a macroeconomic model of the Cypriot economy for the purpose of analysis and forecasting; (b) productivity analysis of the various sectors of the Cyprus economy and comparison with EE and other countries, (c) the effectiveness of public expenditure; (d) the impact of the mass importation of used cars in the Cyprus market; (e) viability of the social security system; and (f) the competitiveness of the Cyprus tourist product.
The University library has a large collection of books in economics and econometrics and subscribes to a large number of journals. There are also time-series and cross-sectional economic data for Cyprus, European Union countries and the rest of the world. The Department has advanced computer hardware and software to support academic research by academic staff and graduate students. Study and research by undergraduate and graduate students benefits from a modern computer lab, maintained jointly with the department of Public and Business Administration. There are also several research programs with external or internal funding on which graduate students can be employed during vacation periods for financial gain and work experience. All these create a fertile environment where graduate students can acquire skills and knowledge enhancing their employment prospects.