ECON 4415 – INTERNATIONAL ECONOMICS
AUTUMN 2007
1. Causes of trade and Gains from trade (KHUM 21.8, 28.8)
DN ch. 1,2,3
Feenstra ch. 6,7
Krugman, 1994, ch. 5
2. International trade under perfect competition: Theory (AI 4.9, 11.9)
2.1 Technological differences and Trade equilibrium
DN ch. 2,3,4
2.2 Factor endowments and Trade equilibrium
DN ch. 2,3,4
Feenstra ch. 1,2
2.3 The Specific factors model (Ricardo-Viner)
DN ch. 4
Feenstra ch. 3
2.4 International trade under perfect competition: Empirical studies
Feenstra ch. 1,2,3
Harrigan, J. 1997. Technology, Factor Supplies, and International Specialization:
Estimating the Neoclassical Model. American Economic Review: pp. 475-494.
Helpman, E. 1999. The structure of foreign trade. Journal of Economic Perspectives. Spring
1999: pp. 121-144
Trefler, D. 1993. International Factor Price Differences: Leontief Was Right! Journal of
Political Economy 101: pp. 961-987.
Trefler, D. 1995. The Case of the Missing Trade and Other HOV Mysteries. American
Economic Review 85: pp. 1029-1046.
3. International trade and factor mobility (AI 18.9)
DN ch. 5
Freeman, Richard B, 2003. Trade Wars: The Exaggerated Impact of Trade in Economic
Debate, NBER Working Paper 10000.
Norman, Victor D. and Anthony J. Venables,1995, “International trade, factor mobility and
trade costs”, Economic Journal 105: pp 1488-1504
4. Trade and oligopoly (AI 25.9)
Brander, J. and P. Krugman. 1983. A "Reciprocal Dumping" Model of International Trade.
Journal of International Economics 15: pp. 313-323.
5. International trade, scale economies and imperfect competition: Theory and
evidence (KHUM 2.10, 9.10)
DN ch. 9
Krugman, P. 1979. Increasing Returns, Monopolistic Competition and International Trade.
Journal of International Economics 9: 469-479.
Krugman, P. 1980. Scale Economies, Product Differentiation, and the Pattern of Trade.
American Economic Review 70: 950-959.
Helpman, E. 1981. International Trade in the Presence of Product Differentiation,
Economies of Scale, and Monopolistic Competition: A Chamberlin-Heckscher-Ohlin
Approach. Journal of International Economics 11: 305-340.
Krugman, P. 1981. Intraindustry Specialization and the Gains from Trade. Journal of
Political Economy 89: 959-974.
***
Davis, D. and D. Weinstein. 1998. Economic Geography and Regional Production Structure:
An Empirical Investigation. European Economic Review 43: pp. 379-407.
Davis, D. and D. Weinstein, 2003, Market Access, Economic Geography, and Comparative
Advantage: An Empirical Assessment, Journal of International Economics 59: pp. 1-23
Engel, C. and J. Rogers. 1999. How Wide is the Border? American Economic Review 86:
pp. 1112-1125.
Evenett, Simon J. and Wolfgang Keller. 2002. On Theories Explaining the Success of the
Gravity Equation. Journal of Political Economy, 110: 281-316.
Harrigan, J. 2001. Specialization and the Volume of Trade: Do the Data Obey the Laws?
NBER Working Paper 8675 (also in James Harrigan, ed., Handbook of International Trade,
Basil Blackwell)
6. Trade and location (KHUM 15.10, 30.10)
Krugman, P. R., 1990, Geography and trade, MIT Press, 1990
Krugman, P. R. and A. J. Venables, 1995, Globalization and the inequality of nations,
Quarterly Journal of Economics 110: pp. 857-880
Ottaviano, G. I. P. and D. Puga, 1998, Agglomeration in the global economy: a survey of the
“new economic geography”, World Economy 25: pp. 707-731
7. Multinational firms (AI 6.11)
Feenstra ch. 11
Brainard, L. 1997. An Empirical Assessment of the Proximity-Concentration Tradeoff
between Multinational Sales and Trade. American Economic Review 87: pp. 520-544.
Markusen, J., 1995, The boundaries of multinational firms and the theory of international
trade. Journal of Economic Perspectives 9: pp. 169-189
8. Trade and the Gravity equation (AI 13.11)
Feenstra ch. 5
9. International trade, productivity and growth (AI 20.11)
Feenstra ch. 10
SYLLABUS
ECON 4415 – INTERNATIONAL ECONOMICS
Books:
Dixit, Avinash and Victor D. Norman, 1980, Theory of International Trade: A Dual, General
Equilibrium Approach. Cambridge Economic Handbooks. Cambridge University Press
[ch. 1,2,3,4,9]
Feenstra, Robert C., 2004, Advanced International trade: Theory and Evidence. Princeton
University Press.
Krugman, Paul R., 1994, Rethinking international trade. MIT Press.
[ch. 5, 6]
P. R. Krugman (1990): Geography and trade, MIT Press, 1990
Articles:
Brainard, L. 1997. An Empirical Assessment of the Proximity-Concentration Tradeoff between
Multinational Sales and Trade. American Economic Review 87: pp. 520-544.
Davis, D. and D. Weinstein. 1998. Economic Geography and Regional Production Structure:
An Empirical Investigation. European Economic Review 43: pp. 379-407.
Davis, D. and D. Weinstein, 2003, Market Access, Economic Geography, and Comparative
Advantage: An Empirical Assessment, Journal of International Economics 59: pp. 1-23
Dornbusch, R., S. Fischer, and P. Samuelson. 1977. Comparative Advantage, Trade and
Payments in a Ricardian Model with a Continuum of Goods. American Economic Review 67:
pp. 823-839.
Engel, C. and J. Rogers. 1999. How Wide is the Border? American Economic Review 86: pp.
1112-1125.
Evenett, Simon J. and Wolfgang Keller. 2002. On Theories Explaining the Success of the
Gravity Equation. Journal of Political Economy, 110: 281-316.
Freeman, Richard B, 2003. Trade Wars: The Exaggerated Impact of Trade in Economic Debate,
NBER Working Paper 10000.
Harrigan, J. 1997. Technology, Factor Supplies, and International Specialization: Estimating
the Neoclassical Model. American Economic Review: pp. 475-494.
Harrigan, J. 2001. Specialization and the Volume of Trade: Do the Data Obey the Laws? NBER
Working Paper 8675 (also in James Harrigan, ed., Handbook of International Trade, Basil
Blackwell)
Helpman, E. 1981. International Trade in the Presence of Product Differentiation, Economies of
Scale, and Monopolistic Competition: A Chamberlin-Heckscher-Ohlin Approach. Journal of
International Economics 11: 305-340.
Helpman, E. 1999. The structure of foreign trade. Journal of Economic Perspectives. Spring
1999: pp. 121-144
Hummels, David, Jun Ishii, and Kei-Mu Yi. 2001. The Nature and Growth of Vertical
Specialization in World Trade. Journal of International Economics 54: pp. 75-96.
Krugman, P. 1979. Increasing Returns, Monopolistic Competition and International Trade.
Journal of International Economics 9: 469-479.
Krugman, P. 1980. Scale Economies, Product Differentiation, and the Pattern of Trade.
American Economic Review 70: 950-959.
Krugman, P. 1981. Intraindustry Specialization and the Gains from Trade. Journal of Political
Economy 89: 959-974.
Krugman, P. R., 1990, Geography and trade, MIT Press, 1990
Krugman, P. R. and A. J. Venables, 1995, Globalization and the inequality of nations, Quarterly
Journal of Economics 110: pp. 857-880
Markusen, J., 1995, The boundaries of multinational firms and the theory of international trade.
Journal of Economic Perspectives 9: pp. 169-189
Norman, Victor D. and Anthony J. Venables,1995, “International trade, factor mobility and trade
costs”, Economic Journal 105: pp 1488-1504
Ottaviano, G. I. P. and D. Puga, 1998, Agglomeration in the global economy: a survey of the
“new economic geography”, World Economy 25: pp. 707-731
Trefler, D. 1993. International Factor Price Differences: Leontief Was Right! Journal of
Political Economy 101: pp. 961-987.
Trefler, D. 1995. The Case of the Missing Trade and Other HOV Mysteries. American
Economic Review 85: pp. 1029-1046.