INSTRUCTOR
Sergi Basco
COURSE DESCRIPTION
This is an advanced course in International Trade for Master students with a solid training in economics. The course covers several topics such as classical trade models, "new trade" theory, the international organization of the firm and dynamic models of trade.
COURSE MEETING TIMES
Wednesday's: 10:00 to 12:00
Friday's: 10:00 to 12:00
Start of the course: 9th April
End of the course: 27th of June
Room 1030
GRADING
The continuous evaluation wiill graded as follows:
Referee Report: 15%
Research Proposal: 35%
Written Examination: 50%
Students who choose to be entered for single assessment have 100% of their grade calculated from the result of a final examination, which may be different from the continuous assessment written examination
COURSE OUTLINE
1 Trade Facts and Gains from Trade
a. Antràs, P. Global Production: Firms, Contracts, and Trade Structure, Princeton University Press, 2016. chapter 1.
b. Feenstra, R., Advanced International Trade: Theory and Evidence, Princeton University Press, 2003. pp. 79-188.
2 Ricardian Model: Theory and Evidence
a. Bernhofen, D., and C. Brown (2004). "A Direct Test of the Theory of Comparative Advantage: The Case of Japan, " Journal of Political Economy, 112, no. 1, pp. 48-67.
b. Costinot, Arnaud and Dave Donaldson (2016). "How Large Are the Gains from Economic Integration? Theory and Evidence from U.S. Agriculture, 1880-1997", NBER working paper 22946.
c. Dornbusch, Rudiger, Stanley Fischer, and Paul A. Samuelson (1977). "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, 67: 823-839.
d. Eaton, Jonathan, and Samuel Kortum (2002) "Technology, Geography, and Trade." Econometrica,70(5): 1741-1779.
e. Nunn, Nathan (2007) "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, 122(2): 569–600.
3 Heckscher-Ohlin Model: Theory and Evidence
a. Feenstra (2003): chapters 1, 2 and 3.
b. Helpman, E., Krugman, Pl Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy, MIT Press, 1987. chapter 1
c. Davis, Donald R., and David E. Weinstein (2001) "An Account of Global Factor Trade,” American Economic Review, 91(5): 1423-1453.
d. Jones, Ronald (1965): "The Structure of Simple General Equilibrium Models,” Journal of Political Economy, 73: 557-572.
e. Trefler, Daniel (1993): "International Factor Price Differences: Leontief was Right!,” Journal of Political Economy, 101(6): 961-987.
f. Trefler, Daniel (1995) "The Case of the Missing Trade and Other Mysteries," American Economic Review, 85(5): 1029-1046.
4 Intermediate Trade and Wage Inequality
a. Feenstra (2003): chapter 5
b. Autor, D. H., Katz, L. F., and Kearney, M. S. (2008). ”Trends in U.S. Wage Inequality: Revising the Revisionists,” The Review of Economics and Statistics, 90(2):300–323.
c. Basco, Sergi and Martí Mestieri (2013): "Heterogeneous Trade Costs and Wage Inequality: A Model of Two Globalizations" (with Martí Mestieri), Journal of International Economics, 89(2):393-406.
d. Feenstra, Robert C., and Gordon H. Hanson (1996) "Foreign Investment, Outsourcing and Relative Wages." In Political Economy of Trade Policy: Papers in Honor of Jagdish Bhagwati. Edited by Robert C. Feenstra, Gene M. Grossman, and Douglas A. Irwin. Cambridge. MA: MIT Press, pp. 89-127.
5 Firms and International Trade
a. Feenstra (2003): chapter 5
b. Helpman and Krugman (1987): chapters 6 and 9
c. Bernard, Andrew B., Jonathan Eaton, J. B. Jensen, and Samuel Kortum (2003):"Plants and Productivity in International Trade," American Economic Review, 93(4): 1268-1290.
d. Bernard, Andrew B., J.B. Jensen, Stephen Redding and Peter Schott (2007): "Firms in International Trade." Journal of Economic Perspectives. 21(3): 105–30.
e. Helpman, Elhanan, Marc J. Melitz, and Yona Rubinstein (2008): "Estimating Trade Flows: Trading Partners and Trading Volumes," Quarterly Journal of Economics, 123(2):441-87.
f. Melitz, Marc J.(2003): "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, 71(6): 1695-1725.
g. Trefler, Daniel (2004): "The Long and Short of the Canada-US Free Trade Agreement" American Economic Review, 94(4): 870–95.
6 International Organization of Production
a. Antràs (2009), chapter 4, 6 and 7
b. Antràs, Pol (2003): "Firms, Contracts, and Trade Structure," Quarterly Journal of Economics, 118(4): 1375-1418.
c. Antràs, Pol, and Elhanan Helpman (2004): "Global Sourcing,” Journal of Political Economy, 112(3): 552-580.
d. Grossman, G.M. and Helpman, E. (2002): "Integration vs. Outsourcing in Industry Equilibrium,” Quarterly Journal of Economics, 117(1): 85-120.
7 Dynamic Models of International Trade
a. Acemoglu, D. Introduction to Modern Economic Growth, Princeton University Press, 2009, chapter 20.
b. Feenstra (2003), chapter 10.
c. Grossman, G.., Helpman, E. Innovation and Growth in the Global Economy, MIT Press, 1991 Grossman and Helpman (1991), chapter 3,4, 7, 8 and 9.
d. Acemoglu, Daron, and Jaume Ventura (2002): "The World Income Distribution,” Quarterly Journal of Economics, 117(2): 659-694.
e. Antràs, Pol (2005):"Incomplete Contracts and the Product Cycle,” American Economic Review, 95(4): 1054-1073.
f. Basco, Sergi (2013): “Financial Development and the Product Cycle,” Journal of Economic Behavior and Organization, 94:295-313.
g. Basco, Sergi and Martí Mestieri (2019): “The World Income Distribution: The Effects of International Unbundling of Production,” Journal of Economic Growth, 24(2): 189-221.
h. Krugman, Paul R.(1979): "A Model of Innovation, Technology Transfer, and the World Distribution of Income,” Journal of Political Economy, 87(2): 253-266.
i. Krugman, Paul R. (1987): "The Narrow Moving Band, the Dutch Disease, and the Competitive Consequences of Mrs Thatcher: Notes on Trade in the Presence of Dynamic Scale Economies." Journal of Development Economics, 27: 41-55.
j. Ventura, Jaume (1997): ”Growth and Interdependence,” Quarterly Journal of Economics, 111: 57-84.
CALENDAR
April 9th: Trade Facts and Gains from Trade
April 11th: Ricardian Model-Theory
April 25th: Ricardian Model-Theory (II)
April 25th: Ricardian Model-Evidence
April 30th: Heckscher-Ohlin-Theory
May 7th: Heckscher-Ohlin-Theory (II)
May 9th: Heckscher-Ohlin-Theory (III)
May 14th: Heckscher-Ohlin-Evidence
May 16st: Intermediate Trade and Wage Inequality
May 21th: Firm and International Trade - Empirics
May 23th: Firm and International Trade - Empirics (II)
May 23th: Firms and International Trade - Theory
May 28th: Firms and International Trade - Theory (II)
May 30th: International Organization of Production
June 4th: International Organization of Production (II)
June 6th: Dynamic Models of International Trade
June 18th: Dynamic Models of International Trade (II)
June 20th: Dynamic Models of International Trade (III)
June 25th: Presentations
June 27th: Exam