Reading/Lecture List

Economics 240A

Graduate Trade – Fall 2007

 

 

Books:

Feenstra, Robert, 2004, Advance International Trade, Princeton University Press.

This book is available at the Bay Tree bookstore.

Other books that you might find useful:

Helpman, E. and P. Krugman, 1985, Market Structure and Foreign Trade, MIT (denoted by HK below)

Bhagwati, J., A. Panagariya and T. N. Srinivasan, 1998, Lectures on International Trade, MIT  (denoted by BPS below)

Dixit, Avinash K. and Victor Norman 1980 Theory of International Trade, London: Cambridge University Press

These are often a good source of information on specific sub-fields of trade:

Jones, R. and P. Kennen. 1984, Handbook of International Economics, Vols. 1 and 2. North-Holland

Grossman, G. and K. Rogoff, 1995, Handbook of International Economics, Vol. 3. North-Holland.

Sometimes a good advanced undergraduate textbook is helpful.  I recommend:

Mikic, Mia, “International Trade”, St. Martin’s Press

Reading:

 

As I figure out what is the appropriate amount to cover in each class, this list will adjust.  The following are required readings.  Along with other papers mentioned in class, the Feenstra text is a good place to find other papers.

 

One-factor ricardian-type models (roughly two weeks):

Dornbusch, Rudiger, Stanley Fischer, and Paul A. Samuelson 1977 "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review 67, pp. 823-839.

Deardorff, Alan V. 1980 "The General Validity of the Law of Comparative Advantage," Journal of Political Economy 88, (October), pp. 941­957

Daniel M. Bernhofen and John C. Brown, A Direct Test of the Theory of Comparative:Advantage: The Case of Japan

Ethier, W. "Decreasing Costs in International Trade and Frank Graham’s Argument for Protection", Econometrica 1982

Factor proportions (roughly three weeks):

Theory:

Feenstra: Chapters 1-3

Jones, Ronald W. 1965 "The Structure of Simple General Equilibrium Models," Journal of Political Economy, (December), pp. 557-572

Neary J. Peter 1978 "Short;Run Capital Specificity and the Pure Theory of International Trade," Economic Journal 88, (September), pp. 488-510;

Evidence:

Leamer, Edward E. 1980 "The Leontief Paradox, Reconsidered," Journal of Political Economy 88, (June), pp. 495-503;

Trefler, Daniel 1995 "The Case of the Missing Trade and Other Mysteries," American Economic Review 85, (December), pp. 1029-1046.

Donald R. Davis and David E. Weinstein, An Account of Global Factor Trade, NBER working paper 6785

New trade theory - core (Nov 5th, 7th)

Feenstra: Chapters 5

Krugman, Paul R. 1979 "Increasing Returns, Monopolistic Competition, and International Trade," Journal of International Economics 9, pp. 469­479

Krugman, Paul R. 1980 "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review 70, (December), pp. 950-959

Melitz, Marc, “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”, Econometrica, Vol. 71, November 2003, pp. 1695-1725.

Melitz, Marc and Gianmarco Ottaviano, “Market Size, Trade and Productivity”, Review of Economics Studies, forthcoming

Trade Policy (November 14th, 16th, 19th):

Feenstra: Chapter 9

Mayer, Wolfgang, Endogenous Tariff Formation, The American Economic Review, Vol. 74, No. 5. (Dec., 1984), pp. 970-985.

Eaton, J. and G. Grossman, 1986, "Optimal Trade and Industrial Policy under Oligopoly" Quarterly Journal of Economics, 101: 383-406

Grossman, G. and E. Helpman 1994 "Protection for Sale", American Economic Review, Sept

Applications/Extensions/Homeworks (as time permits):

Feenstra: Chapter 10

Greenwald, Bruce and Joseph Stiglitz, “Helping Infant Economies Grow:  Foundations of trade policies for developing countries”, American Economic Review Papers and Proceedings

Rivera-Batiz, L. and P. Romer 1991 " Economic Integration and Endogenous Growth" Quarterly Journal of Economics, May

Rudiger Dornbusch; Stanley Fischer; Paul A. Samuelson, Heckscher-Ohlin Trade Theory with a Continuum of Goods”, The Quarterly Journal of Economics, Vol. 95, No. 2. (Sep., 1980), pp. 203-224.

Feenstra, Robert C. and Gordon Hanson, “Foreign investment, outsourcing, and relative wages”, NBER Working paper No. 5121

Helpman, Elhanan 1984 "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy 92 (June), pp. 451­471

Krugman, Paul R. 1991 "Increasing Returns and Economic Geography," Journal of Political Economy 99, pp. 483-499.

Ottaviano, Tabuchi, and Thisse, “Agglomeration and Trade Revisited”, International economic review, May 2002

Maggi, G., 1996, "Strategic Trade Policies with Endogenous Mode of Competition", American Economic Review, 86: 237-258.