Syllabus
The course is intended to cover most recent developments in the field of international trade analysis. In each chapter, as far as it is possible, the presentation of theoretical contributions is accompanied by a comprehensive overview of the corresponding empirical validations. The program covers virtually all topics related to international trade: the nature of specialization and trade patterns, the impact of openness on welfare and labor markets, the impact of trade policies, the business strategies in a global economy (outsourcing, FDI…), the location decisions of firms and the dynamics of spatial agglomeration...
Emphasis is placed on the importance of taking into account the different market structures to describe the pattern of trade and the consequences of globalization.
Emphasis is placed on the importance of taking into account the different market structures to describe the pattern of trade and the consequences of globalization.
Practical info
Language: English
Classroom: Anthropole/3120
Schedule: Wednesday 13h15-17h
First lecture: September 16th 2015.
Assistant:
Ernest Dautovic
[email protected]
Evaluation:
20%: Presentation in class of a research paper from the reading list + Exercices
80%: Written final exam
Previous exams: 2013-2014 / 2014-2015
Classroom: Anthropole/3120
Schedule: Wednesday 13h15-17h
First lecture: September 16th 2015.
Assistant:
Ernest Dautovic
[email protected]
Evaluation:
20%: Presentation in class of a research paper from the reading list + Exercices
80%: Written final exam
Previous exams: 2013-2014 / 2014-2015
Presentation schedule
Homework
Exercise 3 - Firm selection into world markets
Part I: The toolbox
Chap 1. Comparative advantages: Technological differences
- Eaton and Kortum (2012). Putting Ricardo to work, Journal of Economic Perspectives, forthcoming
- Costinot, Donaldson and Komunjer (2012). What do countries trade? A quantitative exploration of Ricardo's idea, Review of Economic Studies
- Bernhofen and Brown (2004). A Direct Test of the Theory of Comparative Advantage: The Case of Japan, Journal of Political Economy
- Presentation Sept 30: Costinot, Donaldson and Smith (2014). Evolving Comparative Advantage and the Impact of Climate Change in Agricultural Markets: Evidence from 1.7 Million Fields around the Earth, Journal of Political Economy.
Chap 2. Comparative advantages: Factor Endowments
- Trefler (1995). The case of the missing trade and other mysteries, American Economic Review
- Romalis (2004). Factor Proportions and the Structure of Commodity Trade, American Economic Review
- Presentation Oct 7: Davis and Weinstein (2001). An account of global factor trade, American Economic Review
Chap 3. The oligololistic model of trade
Neary (2003). Two and half theories of trade, The world Economy
Goldberg, De Loecker, Khandelwal and Pavcnik (2015). Prices, Markups and trade reforms, Econometrica
Chap 4. Monopolistic competition (1): Homogeneous firms
- Krugman (1979). Increasing returns, monopolistic competition and international trade, Journal of International Economics
- Krugman (1980). Scale economies, product differentiation, and the pattern of trade, American Economic Review
- Head and Ries (2001). Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of US-Canada Trade, American Economic Review.
- Hanson and Xiang (2004). The Home Market Effect and Bilateral Trade Patterns, American Economic Review
- Crozet and Trionfetti (2008). Trade costs and the Home Market Effect, Journal of International Economics.
- Krugman (1991). Increasing returns and economic geography, Journal of Political Economy
- Davis and Weinstein (2002). Bones, bombs and break points: The greography of economic activity,American Economic Review
- Presentation Oct 21: Broda and Weinstein (2006). Globalization and the Gains from variety, Quarterly Journal of Economics.
- Presentation Oct 28: Faber (2015). Trade integration, market size and industrialization: Evidence from China's National Trunk Highway System, Review of Economic Studies
Chap 5. Monopolistic competition (2): Heterogeneous firms
- Bernard, Jensen and Schott (2006). Survival of the best fit:(...), Journal of International Economics
- Bernard and Jensen (1999). Exceptional exporter performance: cause, effect or both?, Journal of International Economics
- Bernard, Jensen, Redding and Schott (2007). Firms in international trade, Journal of Economic perspectives
- Mayer and Ottaviano (2007). The happy few: new facts on the internationalisation of European firms, Bruegel Blueprint
- Mayer, Melitz and Ottaviano (2011), Market size, competition and the product mix of exporters, NBER working paper
- Goldberg, Loecker, Khandelwal and Pavcnik (2013) Prices, Markups and Trade Reform, R&R Econometrica
- Eaton, Kortum and Kramarz (2011) An anatomy of international trade: evidence from French firms, Econometrica
- Breinlich (2014). Heterogeneous firm-level responses to trade liberalization: A test using stock price reactions, Journal of International Economics.
Chap 6. The gravity equation
- Anderson and Van Wincoop (2003). Gravity with Gravitas: A solution Puzzle, American Economic Review.
- Disdier and Head (2008), The puzzling persistence of the distance effect on bilateral trade, Review of Economics and Statistics.
- Head and Mayer (2013), Gravity Equations: Workhorse, Toolkit and Cookbook", in Handbook of International Economics.
- Costinot and Rodriguez-Clare (2013), "Trade theory with numbers", in Handbook of International Economics.
- Presetation: Head and Mayer (2013), "What separates us? Sources of resitance to globalization", Canadian Journal of Economics
Part I: Issues and policies
Chap 7. Trading jobs? Trade, employment and wages
- Feenstra (2007). Globalization and its impact on labor, Global Economy Lecture, Vienna Institute for International Economics Studies.
- Goldberg and Pavcnik (2007). Distributional effects of Globalization in Developing Countries, Journal of Economic Litterature.
- Biscourp and Kramarz (2007). Employment, skill structure and international trade, Journal of International Economics.
- Autor, Dorn and Hanson (2012) The China Syndrome: Local labor market effects of import competition in the United States, Working Paper
- Davis and Amiti (2012) Firms, Trade and Wages: Theory and Evidence, Review of Economic Studies
- Presentation Dec 2: Ebeinstein, Harrison, MMillan, Phillips (2013) Why american workers getting poorer?
Chap 8. Vertical specialisation: Trade, quality and trade prices
- Schott (2004) Across-Product versus Within-Product Specialization in International Trade, Quarterly Journal of Economics
- Hallak and Schott (2011) Estimation cross-country differences in product quality, Quarterly Journal of Economics
- Hummels and Skiba (2004) Shipping the good apples out? An empirical confirmation of the Alchian-Allen conjecture, Journal of Political Economy
- Crozet Head and Mayer (2011), Quatlity sorting and trade: Firm-level evidence for French wine, Review of Economic Studies
- Manova and Zhang (2012) Export Prices across Firms and Destinations, Quarterly Journal of Economics.
- Khandelwal (2010) The long and short of quality ladders, Review of Economic Studies.
Chap 9. Multinational firms and outsourcing
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