KS Advanced International Trade (239.132, 4 ECTS).
The goal of this course is to gain a basic understanding of both traditional and new trade theory. After the course, students should be able to explain the main theories and empirical findings from the international trade literature. They should also be able to work with the formal models used in international trade at a basic level, and apply theoretical concepts to policy questions. We cover the following themes, based on the books used for the course (see below).
Traditional trade theory (comparative advantage)
Comparative advantage and the Ricardian model
F: Chapter 1, M: Chapter 4 [slides]
Factor abundance and the Heckscher-Ohlin model
F: Chapters 1-2, M: Chapters 5-6 [slides]
New trade theory (competitive advantage)
Increasing returns and monopolistic competition
F: Chapter 5, M: Chapters 7-8 [slides]
Heterogeneous firms
F: Chapter 6, M: Chapter 13 [slides]
The gravity equation
F: Chapters 5-6, M: Chapter 16 [slides]
Assessment
Grading is based on problem sets (20%) and a final exam (80%). A minimum of 50% of the total is necessary for passing the course.
Readings
The textbooks for this course are Feenstra, R. (2016), Advanced International Trade: Theory and Evidence, 2nd edition, Princeton University Press (F) and van Marrewijk, C. (2012), International Economics, Theory, Application, and Policy, 2nd edition, Oxford University Press (M). Additional material, such as course slides and problem sets, will be made available via Moodle.
Language
The course is taught in English.
Prerequisites
Good knowledge in microeconomic theory, mathematics for economists, and econometrics. Prior introduction to international trade is a plus.
Time and Place
See information in KUSSS (Kepler University Study Support System)
Lecturer
Karin Mayr-Dorn (karin.mayr-dorn@jku.at). Office room number K103A, Keplergebäude, 1st floor. Office hours: by appointment.