Global Firms and Markets

Part 1:
The first part of the course will be devoted to an advanced treatment of the theory and empirics of international trade, starting from the analysis of comparative advantage and then moving on to the new trade theory with imperfect competition and economies of scale.
The second part will introduce heterogeneous agents and examine internationalization choices from the point of view of the firm.
The third part will examine the theory and the empirics of multinational firms.

Part 2:
The course objectives are:
- Help students understand the main features of firms in developing countries and the major determinants of their productivity.
- Guide students in drawing policy implications from the findings of academic research on firms in developing countries.
- Foster the development among students of the ability to critically evaluate the empirical evidence, specifically in terms of causal inference, drawing on a basic knowledge of impact evaluation methodologies.
- Offer opportunities to practice critical thinking and policy evaluation skills through the analysis of empirical data, group discussion and writing of critical reviews of the literature and of independent research proposals.

Part 1:
This module aims at training students on the advanced theory and empirics of international trade and of the internationalisation of firms' activities.
Students will become familiar with standard models of international trade with representative as well as heterogeneous agents, and with the notion of heterogeneous firms' characteristics.
Students will examine why and how firms become multinationals.
By analysing various market structures, students will develop analytical tools necessary to evaluate firms' internationalization choices.

Part 2:
Students will acquire a set of skills that will be useful for their future, both within and outside academia:
- Knowledge on the key institutional, market, infrastructural and social constraints faced by firms in developing countries, which will prove useful in understanding the current debate on development policies, but also on structural reforms in developed countries.
- The focus of the course on methodological aspects will help students acquire the ability to critically evaluate claims of causality and assess the impact of policy interventions.
- The range of assignments for the course will improve students' ability to read critically an academic article, will give them the opportunity to practice their data analysis and writing skills, and will inform their future thesis work by encouraging to think in depth about a topic of their choosing within the course curriculum.