INTERNATIONAL TRADE (ECON 720a)
FALL 2004
Monday-Wednesday, 1:00 - 2:20 pm
Room 106
Room 36, 37 Hillhouse
Office hours: Wednesday, 11am
Gains from Trade
Dixit, A and V. Norman, Theory of International Trade. Chapter 1
Models of Factor Endowments
Feenstra, R., Advanced International Trade. Theory and Evidence, 2004. Chapters 1, 2 and 3
Dixit, A and V. Norman, Theory of International Trade. Chapters 2, 3 and 4
Jones, R., "The Structure of Simple General Equilibrium Models," JPE, 1965
Bhagwati, J., "The Heckscher-Ohlin Theorem in the Multicommodity Case," JPE, 1972
Helpman, E., "The Factor Content of Foreign Trade," EJ, 1984
Ricardian Model
Feenstra, R., Advanced International Trade. Theory and Evidence, 2004. Chapter 1
Bhagwati, J. and T.N. Srinivasan, Lectures on International Trade, 1983, MIT Press. Chapters 2, 3 and 4
Dornbusch, R., S. Fischer and P. Samuelson, "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," AER, 1977
Monopolistic Competition
Feenstra, R., Advanced International Trade. Theory and Evidence, 2004. Chapter 5
Krugman, P. “Increasing Returns, Monopolistic Competition, and International Trade,” JIE, 1979
Krugman, P. “Scale Economies, Product Differentiation and the Pattern of Trade,” AER, 1980
Helpman, H. and P. Krugman, Market Structure and Foreign Trade, Cambridge, MIT Press, 1995, chapters 6-9
Melitz, M., "The impact of trade on intra-industry reallocations and aggregate industry productivity," Econometrica, 2003
Gravity models and Geography
Feenstra, R., Advanced International Trade. Theory and Evidence, 2004. Chapter 5
McCallum, J., "National Borders Matter: Canada-US Regional Trade Patterns," AER, 1995
Frankel, J. and D. Romer, "Does Trade Cause Growth?," AER, 1999
Deardorff, A., "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," in J. Frankel ed., The Regionalization of the World Economy, University of Chicago for the NBER, 1998 (including comment by G. Grossman)
Anderson, J. and E. van Wincoop, "Gravity with Gravitas: A Solution to the Border Puzzle," AER, 2003
Helpman, E., M. Melitz and Y. Rubinstein, “Trading Partners and Trading Volumes,” Harvard University, 2004
Eaton, J. and S. Kortum, "Technology, Geography and Trade," Econometrica, 2002
Exporting Firms
The decision to export
Roberts, M. and J. Tybout, "The decision to export in Colombia: an empirical model of entry with sunk costs," AER, 1997
Das, S., M. Roberts and J. Tybout, "Market entry costs, producer heterogeneity, and export dynamics," Pennsylvania State University, 2001
Eaton, J., S. Kortum and F. Kramarz, "An Anatomy of International Trade: Evidence from French Firms," NYU, 2003
Exports and productivity
Bernard, A., J. Eaton, J. Jensen and S. Kortum, "Plants and Productivity in International Trade," AER, 2003
Clerides, S., S. Lach and J. Tybout, "Is learning by exporting important? Micro-dynamic evidence from Colombia, Mexico, and Morocco," Quarterly Journal of Economics, 1998
Bernard, A. and B. Jensen, "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, 1999
Bernard and Jensen, "Exporting and productivity," Dartmouth College, 2004
Olley, S. and A. Pakes, "The dynamics of productivity in the telecommunications equipment industry," Econometrica, 1996
Levinsohn, J. and A. Petrin, "Estimating production functions using intermediate inputs to control for unobservables," ReStud, 2003
Ackerberg, D. and K. Caves, "Structural identification of production functions," UCLA, 2003
Klette, J. and Z. Griliches, "The Inconsistency of Common Scale Estimators when Output Prices are Unobserved and Endogenous," Journal of Applied Econometrics, 1996
Katayama, H., S. Lu and J. Tybout, "Why plant-level productivity studies are often misleading, and an alternative approach to inference," Pennsylvania State University, 2003
Foreign Direct Investment and Outsourcing
Multinational Corporations
Feenstra, R., Advanced International Trade. Theory and Evidence, 2004. Chapter 11
Helpman, H. and P. Krugman, Market Structure and Foreign Trade, Cambridge, MIT Press, 1995, chapters 11-12
Helpman, E., "A Simple Theory of International Trade with Multinational Corporations," JPE, 1984
Markusen, J., "Multinationals, Multi-plant Economies, and the Gains from Trade," JIE, 1984
Brainard, S. L., "An empirical assessment of the proximity-concentration trade-off between multinational sales and trade," American Economic Review, 1997
Helpman, E., M. Melitz and S. Yeaple, "Exports vs. FDI with heterogeneous firms," AER, 2004
Markusen, J., "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, 1995
Markusen, J. and K. Maskus, ”Discriminating among Theories of the Multinational Enterprise,” Review of International Economics, 2002
Hanson G., R. Mataloni and M. Slaughter, "Expansion Strategies of US Multinational Firms," in Dani Rodrik and Susan Collins (eds) Brookings Trade Forum 2001, 2001
Organization of the Firm
Grossman, G. and E. Helpman, "Outsourcing in a global economy," Princeton, 2001
Grossman, G. and E. Helpman, "Outsourcing vs. FDI in industry equilibrium," European Economic Review, 2003
Grossman, G. and E. Helpman, "Integration versus outsourcing in industry equilibrim," QJE, 2002
Yeaple, S., "A simple model of firm heterogeneity, trade and wages," forthcoming JIE
Antràs, P., "Firms, Contracts, and Trade Structure," QJE, 2003
Grossman, the distribution of talent
Spillovers from FDI
Aitken, B. and A. Harrison (1999): "Do domestic firms benefit from direct foreign investment? Evidence from Venezuela," American Economic Review, 89, 605-618
Keller, W. and S. Yeaple, "Multinational enterprises, international trade and productivity growth: firm-level evidence from the US," CEPR Discussion Paper No. 3805, 2003
Smarzynska, B. (2004): "Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages," forthcoming American Economic Review