Compare and contrast different theoretical models of international trade and assess the suitability of these models in explaining observed international trade patterns and other related phenomena. Demonstrate the ability to conduct diagrammatically simple partial and general equilibrium analyses of prevalent trade policy instruments. Integrate the insights from theoretical trade models, trade policy analysis and political economy arguments of trade policy, for the purposes of explaining the landscape of protectionism across different countries and industries.
Expected learning outcomes
Develop coherent, structured and balanced opinions on ongoing debates in international trade, international cooperation, and globalization and be able to communicate these opinions both orally and in writing forms. Apply the theoretical knowledge and analytical skills acquired from the course to analyze relevant policy issues in the areas of agriculture trade, the WTO trade negotiations, and issues concerning developing countries and economic development.
Lesson period: Second semester
(In case of multiple editions, please check the period, as it may vary)
0. Introduction to international trade topics International trade models: 1. Technology and International Trade: the Ricardian Model; 2. Gains and Losses from International Trade: the Specific-Factors Model; 3. Trade and Resource Endowment: the Heckscher-Ohlin Model; 4. Economies of Scale and Imperfect Competition; 5. Gravity Models and Gravity Equations; International Trade Policy: 6. Tariff and Quota Under Perfect Competition; 7. Export, Production Subsidies and Tax; 8. International Agreements on Trade and the environment; Advance topics: 9. Trade and the welfare effects of environmental and food standards; 10. Trade, migration and climate change.
Prerequisites for admission
Microeconomics (... perfect and monopolistic competition models); statistics and econometrics (elements of inferential statistics, multivariate linear model).
The teaching is based on formal lessons, as well as on the presentation and discussion of specific empirical studies (papers) related to the different topics of the course; the classroom exercises can be based on specific homework assigned by the teacher.
Textbooks 1. Feenstra R. C. e Taylor A. M. (2014). International Trade, Worth MacMillan, New York (F-T). This represent the reference book. 2. Krugman P., Obstfeld M. and Melitz M.J. (2012). International Economics. Theory and Policy, Pearson (K-O-M, just ch 8 (pp. 202-08). This chapter will be available on Ariel. Other readings will be suggested by the teacher in class (available in Ariel).
Assessment methods and Criteria
Written and oral tests at the end of the course, with a few multiple-choice questions (they may require simple mathematical accounts) and 1 open questions (e.g. related to trade models, e.g. Ricardian Model and/or related to one of the empirical papers presented during formal lessons; see reading list on Ariel). Evaluation parameters: 50% written test, 50% oral questions.
Useful material for the mid-term and final exams are the book exercises at the end of each chapter (see the Feenstra&Taylor solution manual in Ariel). Results of the exams will be communicate in Ariel