INTERNATIONAL TRADE (ECON 720a)
FALL 2005
Monday-Wednesday, 2:00 - 3:20 pm
Room 108
Room 36, 37 Hillhouse
Office hours: Wednesday, 11am
Starred papers (*) are required; non-starred papers are additional references.
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
*Eaton, J. and S. Kortum, "Technology, Geography and Trade," Econometrica, September 2002, Vol. 70, No. 5, 1741-1780.
Gains from Trade. Comparative Advantage
*Dixit, A and V. Norman, Theory of International Trade. Chapter 1
Monopolistic Competition
*Feenstra, R., Advanced International Trade. Theory and Evidence, 2004. Chapter 5
*Krugman, P. “Scale Economies, Product Differentiation and the Pattern of Trade,” AER, 1980
Krugman, P. “Increasing Returns, Monopolistic Competition, and International Trade,” JIE, 1979
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
Firm Heterogeneity, Exports, Productivity and Costs of Entry
*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
*Bernard, A. and B. Jensen, "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, 1999
*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 and Jensen, "Exporting and productivity," Oxford Review of Economic Policy, Vol. 20, No. 3, Autumn 2004.
*Pavcnik, N., "Trade
Liberalization, Exit, and Productivity Improvements: Evidence from Chilean
Plants," Review of
Economic Studies, 2002, Vol. 69, No. 1, 245-276
Yeaple, S.*, "A Simple Model of Firm Heterogeneity, International Trade and Wages," Journal of International Economics, 2004
*Bernard, A., J. Eaton, J. Jensen and S. Kortum, "Plants and Productivity in International Trade," American Economic Review, September 2003, Vol. 93, No. 4, 1268-1290. (NBER version).
Eaton, J., S. Kortum and F. Kramarz, "An Anatomy of International Trade: Evidence from French Firms," NYU, 2003
*Bernard, A., J. Jensen and P. Schott, "Falling Trade Costs, Heterogeneous Firms and Industry Dynamics"
Bernard, A., S. Redding and P. Schott, "Product Choice and Product Switching," Yale University SOM, 2004
Measuring Productivity
*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
Varieties and Quality
*Hallak, J.C., "Product Quality, Linder and the Direction of Trade," NBER Working Papers 10877
*Schott, P. "Across-Product versus Within-Product Specialization in International Trade," Quarterly Journal of Economics, Vol. 119, Issue 2, May 2004, 647-678. (working paper version)
Hallak, J.C. and P. Schott, "Estimating Cross-Country Differences in Product Quality," Yale SOM, 2005
*Hummels and Klenow, "The Variety and Quality of a Nation's Trade," forthcoming AER, NBER version
*Broda, C. and D. Weinstein, "Globalization and the Gains from Variety," NBER Working Paper No. 10314, 2004
Feenstra, R. C., "Quality Change under Trade Restraints in Japanese Autos," Quarterly Journal of Economics, Vol. 103, No. 1, Feb. 1988, 131-146.
Aw, B. Y. and M. J. Roberts, "Measuring Quality Change in Quota-Constrained Import Markets: the Case of U.S. Footware," Journal of International Economics, Vol. 21, Issues 1-2, August 1986, 45-60.
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
Markusen, J., "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, 1995
Markusen, J. and A. Venables, "The Theory of Endowments, Intra-industry, and Multinational Trade." JIE, 2000
Markusen, J. Multinational Firms and the Theory of International Trade, MIT Press, 2002
*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. See NBER version for full description of the model.
*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
Javorcik
Blonigen
Feenstra, R. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, 1998
Spillovers from FDI
*Aitken, B. and A. Harrison, "Do domestic firms benefit from direct foreign investment? Evidence from Venezuela," American Economic Review, 1999
Haskel, J., S. Pereira and M. Slaughter, "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," NBER Working Papers, 8724, 2002
*Keller, W. and S. Yeaple, "Multinational enterprises, international trade and productivity growth: firm-level evidence from the US," NBER Working Paper No. 9504, 2003
*Javorcik, B. "Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages," American Economic Review, 2004
Criscuolo, C., J. Haskel, and M. Slaughter, "Global Engagement and the Innovation Activities of Firms," NBER Working Paper No. 11479, 2005
International Technology Diffusion
*Keller, W., "Geographic Localization of International Technology Diffusion," American Economic Review, March 2002, Vol. 92, No. 1, 120-142.
*Coe, D. and E. Helpman, "International R&D Spillovers," European Economic Review, Vol. 39, 1995, 859-887.
Eaton, J. and S. Kortum, "International Technology Diffusion: Theory and Measurement," International Economic Review, August 1999, Vol. 40, No. 3, 537-569.
Incomplete Contracts and Outsourcing
*Grossman, G. and E. Helpman, "Integration versus outsourcing in industry equilibrim," QJE, 2002
*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
*Antràs, P., and E. Helpman, "Global Sourcing," Journal of Political Economy, Vol. 112, No. 3, 2004
*Antràs, P., "Firms, Contracts, and Trade Structure," Quarterly Journal of Economics, 2003 (NBER version)
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
Rose, A, AER 2004
*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
Chaney, T.