AØKK08214U Advanced International Trade

Volume 2015/2016
Education

Elective at MSc in Economics

Content

The course covers the following topics:

  • Gains from Trade and the Law of Comparative Advantage
  • the Heckscher-Ohlin model focusing on international differences in factor endowments
  • the Ricardian model focusing on international differences in technology
  • the Melitz model focusing on imperfect competition and firm heterogeneity
  • Gravity models
  • Trade costs
  • Trade, offshoring and the structure of wages
  • International migration
Learning Outcome

The objective of this graduate-level course is to equip students with an in-depth understanding of the theory of international trade and enable them to read, understand and critically reflect on the most recent theoretical and empirical research in the field.

Compared to the undergraduate-level course International Economics, this course is more research-oriented, focusing on the most important research contributions to international trade in recent years.

At the end of the course, students are expected to be able to describe the above theories and apply relevant concepts from the course to analyze new problems and policy proposals.

Readings include (additional readings will be announced at the start of the semester):

  • Robert Feenstra (2004): "Advanced International Trade: Theory and Policy", Chapters 1-5.

  • Bernhofen and Brown (2004): "A Direct Test of the Theory of Comparative Advantage: The Case of Japan", JPE.

  • Dornbusch, Fischer and Samuelson (1977): "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods", AER.

  • Melitz (2003): "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica.

  • Bernard, Jensen, Redding, and Schott. (2007): "Firms in International Trade," JEP.

  • Anderson and Van Wincoop (2003): "Gravity with Gravitas: A Solution to the Border Puzzle." AER

  • Grossman and Rossi-Hansberg (2008): "Trading Tasks: A Simple Theory of Offshoring." AER.

  • Ottaviano, Peri, and Wright (2013): "Immigration, Offshoring, and American Jobs," AER

  • Hummels, Jørgensen, et al.( 2014) "The Wage and Employment Effects of Offshoring: Evidence from Danish Matched Worker Firm Data." AER.

  • Autor, Dorn and Hanson (2013): "The China Syndrome: The Impact of Import Competition on Local Labor Markets in the US," AER.

It is strongly recommended that students have followed the course “International Economics” (or a course equivalent to this) prior to taking “Advanced International Trade”
Schedule:

The course consists of 3 hours of classes (lectures) every week for 14 weeks.

For enrolled students please find more information of courses, schedule, rules etc at
https:/​/​intranet.ku.dk/​economics_ma/​courses/​Pages/​default.aspx

Timetable and classroom:
For time and classroom please press the link under "Se skema" (See schedule) at the right side of this page (15E means 2015 Efterår (Autumn))
  • Category
  • Hours
  • Exam
  • 3
  • Lectures
  • 42
  • Preparation
  • 161
  • Total
  • 206
Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Written 3 hours closed-book examination
Aid
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censorship
Exam period

The exam takes place 15 December 2015 at Peter Bangs Vej 36. 2000 Frederiksberg http:/​/​pc-eksamen.ku.dk/​pc_exam

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English) and student intranet for Examination (KA-Danish).

Re-exam

Same as the ordinary exam. But if only a few students have registered for the re-exam, the exam might change to an oral exam. This means that the examination date also will change.

 

Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.