THE UNIVERSITY OF COLORADO
DEPARTMENT OF ECONOMICS
Economics 8413
International Trade Theory
Spring, 2001
Keith Maskus
Economics 206, 492-7588, Keith.Maskus@colorado.edu
Hours: Tuesday 3:00 – 5:00; Wednesday 9:00 – 10:00
Syllabus and Reading List
This course covers advanced topics in international trade theory, the theory of trade policy,
empirical work in international trade, and factor mobility. While an attempt is made to be comprehensive,
time pressures dictate a judicious choice of materials for in-class coverage. However, the reading list
provides a wide range of supplementary materials to consult on specific applications of theoretical
materials, which should be useful in thinking about research topics. The objectives of the course are to
expose students deeply to frontier issues in international trade and to provide an analytical framework
within which to pursue individual research.
REQUIRED MATERIALS:
The first two books listed here will serve as texts for particular issues in trade theory and policy.
The MMKM book will be treated as an important background supplement. While it will not be a source of
technical lecture material, students specializing in trade theory are strongly advised to understand that book
thoroughly.
H.P. Bowen, A. Hollander, and J-M Viaene, Applied International Trade Analysis, University of
Michigan Press, 1998 (BHV).
N. Vousden, The Economics of Trade Protection, Cambridge University Press, 1990 (V).
J.R. Markusen, J.R. Melvin, W.H. Kaempfer, and K.E. Maskus, International Trade: Theory and
Evidence, McGraw Hill, 1995 (MMKM).
MAJOR REFERENCES:
These books are useful resources for particular articles and conceptual material. Their purchase is
not necessary, though they would appear in the personal collections of trade specialists. I have marked
particularly important volumes with an asterisk.
*P. Aghion and P. Howitt, Endogenous Growth Theory, MIT Press, 1999.
R.E. Baldwin, Trade Policy Issues and Empirical Analysis, U of Chicago Press, 1988.
R.E. Baldwin, Empirical Studies of Commercial Policy, U of Chicago Press, 1991.
R. Barro and X. Sala-I-Martin, Economic Growth, MIT Press, 1999.
*J.N. Bhagwati, A. Panagariya, and T.N. Srinivasan (BPS), Lectures on International Trade, MIT
Press, 2d. edition, 1998.
J.N. Bhagwati, International Trade: Selected Readings, MIT Press, 2d. Edition, 1987.
*W.M. Corden, Trade Policy and Economic Welfare, Oxford U. Press, 2d. Edition, 1997.
*W.M. Corden, The Theory of Protection, Oxford U Press, 1971.
*A. Dixit and V. Norman (DN), Theory of International Trade, Cambridge U. Press. 1992.
R.C. Feenstra, Empirical Methods for International Trade, MIT Press, 1987.
*G. Grossman, Imperfect Competition and International Trade, MIT Press, 1992.
* G. Grossman and E. Helpman, Innovation and Growth in the Global Economy, MIT Press, 1991.
*G. Grossman and K. Rogoff (GR), Handbook of International Economics: Vol. 3, North-Holland,
1995.
*E. Helpman and P. Krugman (HK), Market Structure and Foreign Trade, MIT Press, 1986.
E. Helpman and P. Krugman, Trade Policy and Market Structure, MIT Press, 1988.
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*R. Jones and P.B. Kenen (JK), Handbook of International Economics: Volume 1, International
Trade Theory, North-Holland, 1985.
P. Krugman and A. Smith, Empirical Studies of Strategic Trade Policy, U of Chicago Press, 1994.
*E.E. Leamer, Sources of International Comparative Advantage, MIT Press, 1985.
J. Levinsohn, A.V. Deardorff, and R.M. Stern, New Directions in Trade Theory, U of Michigan
Press, 1995.
Alan Woodland, International Trade and Resource Allocation, North-Holland, 1980.
K-Y Wong, International Trade in Goods and Factor Mobility, MIT Press, 1995.
CLASSICS:
These were the articles and books that formed the basis of trade theory about 25 years ago. We
won’t read them but they might be worth a glance.
J.N. Bhagwati, “The Pure Theory of International Trade: A Survey,” Economic Journal, 1964.
R. Caves and H. Johnson, AEA Readings in International Economics, Irwin, 1968.
J. Chipman, “A Survey of the Theory of International Trade,” Econometrica, June 1965, October
1965, and February 1966.
M. Kemp, The Pure Theory of International Trade and Investment, Prentice-Hall, 1965.
J. Meade, A Geometry of International Trade, Allen and Unwin, 1951.
Akira Takayama, International Trade (Holt, Rinehart and Winston), 1964.
UNDERGRADUATE TEXTS:
You might find it useful to get one of these in order to find straightforward treatments of basic
issues. These are all good books.
D. Appleyard and A. Field, International Economics, Irwin-McGraw Hill, 3rd Edition, 1998.
R. Caves, J. Frankel, and R. Jones, World Trade and Payments, Harper-Collins, 6th Edition, 1993.
W. Ethier, Modern International Economics, Norton, 3rd Edition, 1995.
P. Krugman and M. Obstfeld, International Economics: Theory and Policy, Harper-Collins, 4th
Edition, 1997.
D. Salvatore, International Economics, MacMillan, 4th Edition, 1993.
BOOKS ON POLICY:
For good reasons, this course emphasized theory (including theory of trade policy) and spends
little time on practical issues of trade policy and international relations. However, some books on the latter
subjects are noteworthy.
J.N. Bhagwati and R.E. Hudec, Fair Trade and Harmonization: Prerequisites for Free Trade?
Volume 1: Economic Analysis, MIT Press, 1996.
I.M. Destler, American Trade Politics, 3rd Edition, Institute for International Economics, 1995.
B. Hoekman and M. Kostecki, The Political Economy of the World Trading System, Oxford U
Press, 1995.
A.O. Krueger, The WTO as an International Organization, U of Chicago Press, 1998.
P. Krugman, Pop Internationalism, MIT Press, 1997.
R.Z. Lawrence, Regionalism, Multilateralism, and Deeper Integration, Brookings, 1996.
K.E. Maskus, Intellectual Property Rights in the Global Economy, Institute for International
Economics, 2000.
R. Pomfret, The Economics of Regional Trading Arrangements, Clarendon Press, 1997.
J.J. Schott, The World Trading System: Challenges Ahead, Institute for International Economics,
1996.
M.J. Trebilcock and R. Howse, The Regulation of International Trade, Routledge, 1995.
J. Whalley and C. Hamilton, The Trading System after the Uruguay Round, Institute for
International Economics, 1996.
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ASSIGNMENTS:
There will be one midterm examination (March 15), a final examination (Wednesday, May 9,
10:30 AM), two homework assignments, and a research paper (details discussed below). These tasks will
be assigned the following weights in the overall grade:
Midterm examination
35%
Final examination
35%
Assignments
16%
Paper
14%
The research paper should be an up-to-date, critical review of the available literature on a particular aspect
of trade theory or trade policy (consult with me for likely topics), not exceeding 15 double-spaced pages.
The goal of the paper is to move you into a research topic that could lead to a journal submission and/or a
start on your dissertation.
READINGS:
Required readings are marked with an asterisk (*). Other readings may also provide material for
lectures, which I will indicate in class.
PART I: BASIC CONCEPTS
1.
Introductory Material
*BHV, Ch. 1
MMKM, Ch. 1
2.
Production Technologies, Cost, and Duality
*BPS, Ch. 9.
*Dixit and Norman, Ch. 1 and Ch. 2.1-2.3
*M. Mussa, “The Two-Sector Model in Terms of Its Dual: A Geometric Exposition”, in Bhagwati,
Readings, Ch. 4.
Wong, Ch. 2.1-2.4.
MMKM, Ch. 2.
R. Jones, “The Structure of Simple General Equilibrium Models”, Journal of Political Economy, Dec.
1965.
Alan Woodland, Chs. 2 and 3.
3.
Demand and National Welfare
*Wong, Ch. 2.7
*MMKM, Ch. 3 and Appendix 1.
E. Tower, “The Geometry of Community Indifference Curves”, Weltwirtschaftliches Archiv, 1979.
DN, Chapter 2 part 4.
P. Samuelson, “Social Indifference Curves”, Quarterly Journal of Economics, Feb. 1956.
4.
Equilibrium and Reciprocal Demand: The Trade Utility Function
*Wong, Ch. 2.8-2.11.
*Vousden, Chapter 1, parts 1.1 and 1.5.
MMKM, Ch. 4.
DN, Ch. 3, part 1.
Meade, Chapters 1-4.
5.
The Gains from Trade
*W.M. Corden, “The Normative Theory of International Trade”, in Jones and Kenen, Ch. 2, parts 1-3.
*DN, Ch.3, parts 2-4.
*HK, Ch. 1.
MMKM, Chapter 5.
P. Samuelson, “The Gains from International Trade Once Again”, Economic Journal, Dec. 1962.
R. Baldwin, “The New Welfare Economics and Gains from International Trade,” Quarterly Journal of
Economics, 1952.
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PART II: INTERNATIONAL TRADE THEORIES
6.
Ricardian Trade Theory
*BHV, Ch. 3.
*R. Ruffin, “The Missing Link: The Ricardian Approach to the Factor Endowments Theory of Trade”,
American Economic Review, Sept. 1988.
MMKM, Chapters 6-7.
R. Dornbusch, S. Fischer, and P. Samuelson, “Comparative Advantage, Trade, and Payments in a
Ricardian Model with a Continuum of Goods”, American Economic Review, Dec. 1977.
BPS, Chapters 2-4.
J. Markusen and L. Svensson, “Trade in Goods and Factors with International Differences in
Production Technology”, International Economic Review, 1985.
7.
The Factor-Proportions Model and Specific-Factors Model
*BHV, Ch. 4
*Vousden, Ch. 1, parts 1.2-1.4, Appendix 1.
*HK, Ch. 1
*BHV, Ch. 8
*D. Davis and D. Weinstein, “An Account of Global Factor Trade”, manuscript, 1998.
*BHV, Ch. 6.1,
*M. Mussa, “Tariffs and the Distribution of Income: the Importance of Factor Specificity,
Substitutability, and Intensity in the Short and Long Run”, Journal of Political Economy,
1974.
*BHV, Ch. 7.
MMKM, Chapters 8-9, 14.
DN, Chapter 4, Chapter 5 parts 2 and 3.
BPS, Chapters 5-8.
W. Stolper and P. Samuelson, “Protection and Real Wages”, Review of Economic Studies, 1941.
T. Rybczynski, “Factor Proportions and the Heckscher-Ohlin Theorem”, Economica, 1955.
Alan Deardorff, “Weak Links in the Chain of Comparative Advantage”, Journal of International
Economics, 1979.
Alan Deardorff, “The General Validity of the Heckscher-Ohlin Theorem”, American Economic
Review, Sept. 1982.
J. Vanek, “The Factor-Proportions Theory: the n-Factor Case”, Kyklos, 1968.
J. Melvin, “Production and Trade with Two Factors and Three Goods”, American Economic Review,
Dec. 1968.
Alan Deardorff and R. Staiger, “An Interpretation of the Factor Content of Trade”, Journal of
International Economics, 1988.
P. Neary, “Short-Run Capital Specificity and the Pure Theory of International Trade”, in Bhagwati,
Readings, chapter 5.
J. Martin, “Variable Factor Supplies and the HOS Model”, Economic Journal, 1976.
D. Trefler, “The Case of the Missing Trade and Other Mysteries”, American Economic Review, Dec.
1995.
E. Leamer, Sources of International Comparative Advantage, MIT Press, 1985.
H. Bowen, E. Leamer, and L. Sveikauskas, “Multicountry, Multifactor Tests of the Factor Abundance
Theory”, American Economic Review, Dec. 1987.
K. Maskus, “A Test of the HOV Theorem: the Leontief Commonplace”, Journal of International
Economics, August 1985.
E. Leamer and J. Levinsohn, “International Trade Theory: the Evidence”, in GR, chapter 26.
8.
Product and Factor Market Distortions
*BPS, Ch. 22-23, 25-27.
*BHV, Ch. 6.3.
MMKM, Ch. 10.
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J. Melvin, “Commodity Taxation as a Determinant of Trade”, Canadian Journal of Economics, Feb.
1970.
P. Neary, “Dynamic Stability and the Theory of Factor Market Distortions”, American Economic
Review, 1978.
9.
Increasing Returns and Imperfect Competition
a. External Economies of Scale
*HK, Chapter 2-3.
W. Ethier, “Internationally Decreasing Costs and World Trade”, Journal of International
Economics, Feb. 1979.
W. Ethier, “National and International Returns to Scale in the Modern Theory of International
Trade”, American Economic Review, 1982 and in Grossman, Ch. 14.
Arvind Panagariya, “Variable Returns in Production and Patterns of Specialization”, American
Economic Review, 1981.
Arvind Panagariya, “Increasing Returns, Dynamic Stability, and International Trade”, Journal of
International Economics, 1986.
b.
Internal Economies of Scale and Imperfect Competition
*BHV, Ch. 9.
*P. Krugman, “Increasing Returns, Monopolistic Competition, and International Trade”, Journal
of International Economics, 1979.
*J. Markusen, “Trade and the Gains from Trade with Imperfect Competition”, Journal of
International Economics, 1981 and in Grossman, Ch. 3.
*J. Brander and P. Krugman, “A Reciprocal Dumping Model of International Trade”, in
Grossman, Ch. 1.
MMKM, Ch. 11-12.
DN, Ch. 9.
HK, Ch. 4-9.
P. Krugman, “Increasing Returns, Imperfect Competition, and the Positive Theory of International
Trade”, in GR, Ch. 24.
P. Krugman, “Scale Economics, Product Differentiation, and the Pattern of Trade”, American
Economic Review, 1980 and in Grossman, Ch. 11.
E. Helpman, “International Trade in the Presence of Product Differentiation, Economies of Scale,
and Monopolistic Competition: a Chamberlin-Heckscher-Ohlin Approach”, in Grossman,
Ch. 13.
K. Lancaster, “Intra-Industry Trade under Perfect Monopolistic Competition”, Journal of
International Economics, 1980.
J. Markusen, “Trade in Producer Services and in Other Specialized Intermediate Inputs”,
American Economic Review, March 1989.
R. Harris, “Applied General Equilibrium Analysis of Small Open Economies with Scale
Economies and Imperfect Competition”, American Economic Review, 1984.
R. Feenstra, “Gains from Trade in Differentiated Products: Japanese Compact Trucks”, in
Feenstra, Ch. 5.
10. Demand Patterns and Trade
*J. Markusen, “Explaining the Volume of Trade: an Eclectic Approach”, American Economic Review,
Dec. 1986.
*L. Hunter, “The Contribution of Nonhomothetic Preferences to Trade”, Journal of International
Economics, May 1991.
MMKM, Ch. 13.
S.B. Linder, An Essay on Trade and Transformation, Almqvist and Wiksell, 1961.
J. Bergstrand, “The Heckscher-Ohlin Theorem, the Linder Hypothesis, and the Volume and Pattern of
International Trade”, Economic Journal, Dec. 1990.
11. Technology, Growth, and Trade
*BHV, Ch. 14.
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*P. Krugman, “A Model of Innovation, Technology Transfer, and the World Distribution of Income”,
Journal of Political Economy, 1979.
*J. Frankel and D. Romer, “Does Trade Cause Growth?” American Economic Review, June 1999.
MMKM, Ch. 23.
G. Grossman and E. Helpman, “Technology and Trade”, in GR, Ch. 25.
D. Dollar, “Technological Innovation, Capital Mobility, and the Product Cycle in North-South Trade”,
American Economic Review, March 1986.
K. Flam and E. Helpman, “Vertical Product Differentiation and North-South Trade”, American
Economic Review, Dec. 1987.
D. Keesing, “Labor Skills and Comparative Advantage”, American Economic Review, 1966.
R. Vernon, “International Investment and International Trade in the Product Cycle”, Quarterly Journal
of Economics, 1966.
G. Grossman and E. Helpman, “Quality Ladders and Product Cycles”, Quarterly Journal of
Economics, 1991.
G. Grossman and E. Helpman, Innovation and Growth in the Global Economy, MIT Press, 1991.
E. Helpman, “Innovation, Imitation, and Intellectual Property Rights”, Econometrica, 1993.
G. Yang and K. Maskus, "Intellectual Property Rights, Licensing, and Innovation in an Endognous
Product-Cycle Model," Journal of International Economics, 2001.
PART III: THE THEORY OF COMMERCIAL POLICY
12. Tariffs, Effective Protection, and Quotas
*BHV, Ch. 2, 5.
*Vousden, Chapters 2-4.
*R. Feenstra, “Estimating the Effects of Trade Policy”, in GR, Ch. 30.
W. Corden, “The Normative Theory of International Trade, in JK, Ch. 2, parts 4-5.
MMKM, Chapters 15-16.
DN, Ch. 5, parts 5-7.
BPS, Chapters 12-15, 21.
H. Johnson, “Optimum Tariffs and Retaliation”, in H. Johnson, International Trade and Economic
Growth, Ch. 2.
R. Jones, “Effective Protection and Substitution”, Journal of International Economics, 1971.
J.N. Bhagwati and T.N. Srinivasan, “The General Equilibrium Theory of Effective Protection and
Resource Allocation”, Journal of International Economics, 1973.
13. Distortions and Optimal Intervention
*BPS, Chapters 28-29.
W. Corden, “The Normative Theory of International Trade”, in JK, Ch. 2, parts 6-9.
DN, Ch. 6, parts 1-3.
J. Bhagwati, “The Generalized Theory of Distortions and Welfare”, in Bhagwati, Readings, Ch. 16.
R. Brecher, “Optimal Commercial Policy for a Minimum-Wage Economy”, Journal of International
Economics, 1974.
J. Markusen, “Cooperative Control of International Pollution and Common Property Resources”,
Quarterly Journal of Economics, 1975.
14. Commercial Policy in Imperfectly Competitive Markets
*BHV, Ch. 10.
*Vousden, Chapters 5-7.
*J. Eaton and G. Grossman, “Optimal Trade and Industrial Policy under Oligopoly”, Quarterly
Journal of Economics, May 1986 and in Grossman, Ch. 7.
*G. Grossman, “Strategic Export Promotion: a Critique”, in Krugman, Strategic Trade Policy and the
New International Economics, MIT Press, 1986.
S. Berry, J. Levinsohn, and A. Pakes, “Voluntary Export Restraints on Automobiles: Evaluating a
Trade Policy”, American Economic Review, June 1999.
K. Krishna, “Trade Restrictions as Facilitating Practices”, in Grossman, Ch. 5.
Dixit, “International Trade Policy for Oligopolistic Industries”, in Bhagwati, Readings, Ch. 12.
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R. Harris, “Why Voluntary Export Restraints are Voluntary”, Canadian Journal of Economics, 1985.
MMKM, Ch. 17.
P. Krugman, “Import Protection as Export Promotion: International Competition in the Presence of
Oligopoly and Economies of Scale”, in Grossman, Ch. 4.
B. Spencer and J. Brander, “International R&D Rivalry and Industrial Strategy”, Review of Economic
Studies, 1983.
Horstmann and J. Markusen, “Up the Average Cost Curve: Inefficient Entry and the New
Protectionism”, Journal of International Economics, May 1986.
J. Markusen and A. Venables, “Trade Policy with Increasing Returns and Imperfect Competition:
Contradictory Results from Competing Assumptions”, Grossman, ch. 8.
Dixit and G. Grossman, “Targeted Export Promotion with Several Oligopolistic Industries”, Journal of
International Economics, Nov. 1986.
Venables, “Trade Policy under Imperfect Competition: a Numerical Assessment”, in Krugman-Smith.
R. Harris, “Trade and Industrial Policy for a Declining Industry: the Case of the U.S. Steel Industry”,
in Krugman-Smith.
D. Brown, “Tariffs, the Terms of Trade, and National Product Differentiation”, Journal of Policy
Modeling, 1987.
15. Preferential Trade Areas
*Vousden, Ch. 10.
*BHV, Ch. 12.
*R. Baldwin and A. Venables, “Regional Economic Integration”, in GR, Ch. 31.
MMKM, Ch. 18.
W. Corden, “The Normative Theory of International Trade”, in JK, Ch. 2, part 11.
M. Kemp and H. Wan, “An Elementary Proposition Concerning the Formation of Customs Unions”, in
Bhagwati, Readings, Ch. 21.
Cooper and Massell, “Towards a General Theory of Customs Unions for Developing Countries”,
Journal of Political Economy, 1965.
Pearson and Ingram, “Economies of Scale, Domestic Divergences, and Potential Gains from Economic
Integration in Ghana and the Ivory Coast”, Journal of Political Economy, 1980.
Smith and A. Venables, “Completing the Internal Market in the European Community: Some Industry
Simulations”, European Economic Review, 1988.
16. Trade Reform, Trade Policymaking, and Institutions
*Vousden, Ch. 9.
*D. Konan and K. Maskus, “Joint Tax and Trade Reform in a Small Open Economy: the Case of
Egypt”, Journal of Development Economics, 2000.
*K. Bagwell and R. Staiger, “A Theory of Managed Trade”, American Economic Review, Sept. 1990.
MMKM, Ch. 20.
R. Baldwin, “Trade Policies in Developed Countries”, in JK, Ch. 12.
A.O. Krueger, “Trade Policies in Developing Countries”, in JK, Ch. 11.
T. Prusa, “Why Are So Many Antidumping Petitions Withdrawn?” Journal of International
Economics, August 1992.
R. Fernandez and D. Rodrik, “Resistance to Reform: Status Quo Bias in the Presence of Regulation”,
American Economic Review, 1991.
W. Martin and L.A. Winters, The Uruguay Round and Developing Countries, Cambridge U Press,
1996.
17. Political Economy of Protectionism
*Vousden, Ch. 8.
*G. Grossman and E. Helpman, “Protection for Sale”, American Economic Review, Sept. 1994.
MMKM, Ch. 19.
A.O. Krueger, “The Political Economy of the Rent-Seeking Society”, American Economic Review,
1974.
R. Findlay and S. Wellisz, "Endogenous Tariffs, the Political Economy of Trade Restrictions, and
Welfare," in J. Bhagwati (ed.), Import Competition and Response, 1982.
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J. Cassing, T. McKeown, and Ochs, “The Political Economy of the Tariff Cycle”, American Political
Science Review, 1986.
A. Hillman, "Declining Industries and Political-Support Protectionist Motives," American Economic
Review, 1982.
W. Mayer, “Endogenous Tariff Formation”, in Bhagwati, Readings, Ch. 19.
W. Brock and S. Magee, “The Economics of Special-Interest Politics: the Case of the Tariff”,
American Economic Review, 1978.
P. Goldberg and G. Maggi, "Protection for Sale: An Empirical Investigation," American Economic
Review, 1999.
K. Gawande and U. Bandyopadhyay, " Is Protection for Sale? Evidence on the Grossman-Helpman
Theory of Endogenous Protection," Review of Economics and Statistics, 2000.
PART IV: INTERNATIONAL FACTOR MOVEMENTS
18. Portfolio Capital and Labor
*BHV, Ch. 6.2.
*J. Markusen, “Factor Movements and Commodity Trade as Complements”, Journal of International
Economics, 1983.
MMKM, Ch. 21.
BPS, Chapters 32-33.
K-Y Wong, “Are International Trade and Factor Mobility Substitutes?” in Bhagwati, Readings, Ch. 3.
R. Brecher and C. Diaz-Alejandro, “Tariffs, Foreign Capital, and Immiserizing Growth”, in Bhagwati,
Readings, Ch. 23.
R. Jones, Coelho, and Easton, “The Theorems of International Trade with Factor Mobility”, Journal of
International Economics, 1986.
R. Brecher and J. Bhagwati, “Foreign Ownership and the Theory of Trade and Welfare”, Journal of
Political Economy, 1981.
J. Markusen and L. Svensson, “Trade in Goods and Factors with International Differences in
Technology”, International Economic Review, 1985.
19. Foreign Direct Investment and the Multinational Enterprise
*BHV, Ch. 11.
*J. Markusen, “The Boundaries of Multinational Enterprises and the Theory of International Trade”,
Journal of Economic Perspectives, Spring 1995.
*D. Carr, J. Markusen, and K. Maskus, “Estimating the Knowledge-Capital Model of the Multinational
Enterprise”, American Economic Review, forthcoming, 2001.
MMKM, Ch. 22.
HK, Chapters 12-13.
W. Ethier, “The Multinational Firm”, Quarterly Journal of Economics, 1987.
E. Helpman, “A Simple Theory of International Trade with Multinational Corporations”, Journal of
Political Economy, 1984.
J. Markusen, “Multinationals, Multi-plant Economies, and the Gains from Trade”, Journal of
International Economics, 1984.
Horstmann and J. Markusen, “Licensing versus Direct Investment: A model of Internalization by the
Multinational Enterprise”, Canadian Journal of Economics, 1987.
Horstmann and J. Markusen, “Endogenous Market Structures in International Trade” Journal of
International Economics, Feb. 1992.
S.L. Brainard, “An Empirical Assessment of the Proximity-Concentration Tradeoff between
Multinational Sales and Trade”, American Economic Review, 1997.
PART V: OTHER TOPICS
20. International Trade and the Environment
B. Copeland and S. Taylor, “Trade and Transboundary Pollution”, American Economic Review, Sept.
1995.
W. Antweiler, B. Copeland, and S. Taylor, “Is Free Trade Good for the Environment?” manuscript,
8
1999.
G. Grossman and A. Krueger, “Environmental Impacts of a North American Free Trade Agreement”,
in P. Garber, The U.S.-Mexico Free Trade Agreement, MIT Press, 1993.
M. Kemp and N. van Long, “The Role of Natural Resources in Trade Models,” in JK, Ch. 8.
K. Krutilla, “Environmental Regulation in an Open Economy”, Journal of Environmental Economics
and Management, 1991.
P. Uimonen and J. Whalley, Trade and the Environment: Setting the Rules, Institute for International
Economics, 1996.
D. Esty, Greening the GATT: Trade, Environment and the Future, Institute for International
Economics, 1994.
21. Trade and Labor Markets
R. Feenstra and G. Hanson, "Foreign Investment, Outsourcing, and Relative Wages," in Feenstra and
Grossman, eds., The Political Economy of Trade Policy, 1996.
J.D. Richardson, “Income Inequality and Trade: How to Think, What to Conclude”, Journal of
Economic Perspectives, Summer 1995.
Adrian Wood, North-South Trade Employment and Inequality, Clarendon Press, 1994.
R. Lawrence and M. Slaughter, “International Trade and American Wages in the 1980s: Giant Sucking
Sound of Small Hiccup?” Brookings Papers on Economic Activity: Microeconomics 2, 1993.
E. Leamer, “Foreigners and Robots: Assistants of Some, Competitors of Others,” manuscript, 1998.
G. Hanson and M. Slaughter, “The Rybczynski Theorem, Factor-Price Equalization, and Immigration:
Evidence from U.S. States,” manuscript, 1999.
K. Maskus, Should Core Labor Standards Be Imposed through International Trade Policy? World
Bank Working Paper 1817, 1997.
22. Trade Under Uncertainty
BPS, Ch. 39.
J. Pomery, “Uncertainty in Trade Models,” in JK, Ch. 9.
E. Helpman and A. Razin, A Theory of International Trade Under Uncertainty, Academic Press, 1990.
R. Ruffin, “International Trade under Uncertainty”, Journal of International Economics, 1974.
23. Trade and International Price Setting
BHV, Ch. 13.
R. Feenstra, “Symmetric Pass-Through of Tariffs and Exchange Rates under Imperfect Competition”,
Journal of International Economics, 1989.
M. Knetter, “International Comparisons of Pricing-to-Market Behavior”, American Economic Review,
1992.
R. Baldwin and P. Krugman “Persistent Trade Effects of Large Exchange Rate Shocks”, Quarterly
Journal of Economics, 1989.
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