Universität Wien

040842 UK International Trade (2013W)

International Trade

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work

This is a course for master (Magister) students in economics. Good knowledge of microeconomics at the master level (consumption and production theory, basic concepts of general equilibrium) and basic knowledge of econometrics are required.

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

  • Tuesday 01.10. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 08.10. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 15.10. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 22.10. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 29.10. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 05.11. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 12.11. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 19.11. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 26.11. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 03.12. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 10.12. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 17.12. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 07.01. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 14.01. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 21.01. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
  • Tuesday 28.01. 12:00 - 14:00 Seminarraum 1 Oskar-Morgenstern-Platz 1 Erdgeschoß

Information

Aims, contents and method of the course

The course is an introduction to international trade at the graduate (=master) level. No previous knowledge of trade theory is required, but the material will be presented in a rigorous and formal way. We will discuss the ideas of comparative advantage and gains of trade and some of the workhorse models of international trade, such as the Ricardian model (sectoral productivity differences), the Heckscher-Ohlin model (differences in factor endowments), the Krugman model of intra-industry trade (increasing returns), and trade models with firm-level heterogeneity in productivity (Melitz, 2003). We will also cover trade policy and trade agreements. Some emphasis will be given to studying the empirical relevance of different trade models and their implications.

Assessment and permitted materials

Evaluation will be based o a midterm exam (40%), a final exam (40%) and problem sets (20%). Students can deregister from the course until the end of October.

Minimum requirements and assessment criteria

The goal of the course is to make students familiar with the basic models and methods used in modern international trade at the graduate level.

Examination topics

The course will have a lecture structure.

Reading list

Textbooks:

No single textbook covers all topics adequately. Some useful references are:

Dixit, A.K. and V. Norman (1980): Theory of International Trade, Cambridge University Press. (DN)

Feenstra, R.C. (2004): Advanced International Trade: Theory and Evidence, Princeton University Press. (F)

Helpman, E. and P.R. Krugman (1985): Market Structure and Foreign Trade, MIT Press. (HK1)

Helpman, E. and P.R. Krugman (1989): Trade Policy and Market Structure, MIT Press. (HK2)

For an introductory treatment of the material -- too basic for the level of the course but adequate for getting the basic ideas:

Feenstra R.C, and A. Taylor (2008): International Economics, Worth Publishers.

Krugman, P.R. and M. Obstfeld (2007): International Economics, Addison-Wesley.

Syllabus:

1) The Ricardian Model – Relative Productivity Differences

F, Chapter 1

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, December.

2) The Heckscher-Ohlin Model – Relative Factor Endowment Differences

F, Chapters 1-3

HK1, Chapter 1

Trefler, D. (1995): "The Case of Missing Trade and Other Mysteries," American Economic Review 85, 1029-1046.

3) Increasing Returns, New Trade Theory and the Gravity Equation

F, Chapter 5

HK1, Chapters 3, 6-9

Krugman, P.R. (1979): “Increasing Returns, Monopolistic Competition, and International Trade,” Journal of International Economics, November 9 (4), 469-479.

Krugman, P.R. (1980): “Scale Economies, Product Differentiation, and the Pattern of Trade,” American Economic Review 70, 950-959.

Trefler, D. (2004): "The Long and Short of the Canada-U.S. Free Trade Agreement," American Economics Review, 870-895.

4) Heterogeneous Firms and Trade

Melitz, Marc (2003): "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, vol. 71(6), 1695-1725.

5) Trade Policy & Trade Agreements

F, Chapters 6-8

HK2, Chapters 1, 6

Venables, A. (1987): "Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model", Economic Journal 97, 700-717.

Bagwell, K. and R. W. Staiger (1999), "An Economic Theory of GATT", American Economic Review 89, 215-48.

Association in the course directory

Last modified: Mo 07.09.2020 15:29