AØKK08214U Advanced International Trade

Volume 2024/2025
Education

MSc programme in Economics – elective course

 

The PhD Programme in Economics at the Department of Economics:

  • The course is an elective course with research module. In order to register for the research module and to be able to write the research assignment, the PhD students must contact the study administration AND the lecturer.

 

The course is open to:

  • Exchange and Guest students from abroad
  • Credit students from Danish Universities
  • Open University students
Content

The objective of this course is to equip students with an in-depth understanding of the

latest and most important research in international economics. The course enables students to read, understand and critically reflect on classical and the recent research on international trade, globalization, and policy proposals. Empirical evidence is used throughout the course to examine the validity of the presented theories.

 

The course is divided into three main parts:

 

Part 1 - Classical Theories

The first part of the course covers classical underlying theories. Topics covered include:

  • Gains from trade and the law of comparative advantage
  • Multi-product Ricardian trade theory
  • Generalized Heckscher-Ohlin theory

 

Part 2 - Modern Applications

The second part focuses on important recent advances and modern applications in international economics. Topics covered include:

  • The Melitz model of trade with heterogeneous firms
  • Empirics and foundation of the Gravity equation
  • How globalization impacts inequality. For example, by impacting different groups: high/low skill workers, men/women, blue- or white-collar workers.
  • How globalization impacts the gender wage gap (GWG), family decisions and the health of workers.
  • The role of trade and trade policy given recent return to protectionism (for example, BREXIT and US-China trade dispute)
  • The impact of trade exposure on voting and election outcomes
  • The role of multinationals, foreign-direct investment on globalization, and the organization of the firm. This includes supply chain networks and firm-to-firm trade.

 

Part 3 - Policy Report

Part three provides students with hands-on experience with international trade data. Students should apply their knowledge and write a short policy report. Students have in previous years assessed how trade and welfare would be impacted by, 1) a further extension of the EU and, 2) the war in Ukraine. The focus of the report varies from year to year. For this assignment, some basic knowledge of a statistical software is required (e.g. Stata, R, Python). Students will receive technical assistance via an in-class tutorial and dedicated office hours (if needed).

Learning Outcome

After completing the course the student is expected to be able to:

 

Knowledge

  • Identify and account for the core theories of international trade.

  • Account for the stylized facts and direct empirical tests of the core theories of international trade.

 

Skills

  • Analyze and critically reflect on main predictions of core theories of international trade.

  • Analyze trade-related questions by use of relevant theories and methods.

  • Communicate and discuss key concepts in international trade on a scientific manner.

  • Provide an overview of recent theoretical and empirical developments in the field.

 

Competencies

  • Read the most recent theoretical and empirical research in international trade

  • Apply relevant theories and concepts in independent work to analyze new problems and policy proposals

Main textbook (required):

  • Robert C. Feenstra (2016): Advanced International Trade: Theory and Evidence, Princeton University Press, 2nd edition, selected material from many chapters.

 

Other materials/list of academic papers

Part 1 (selection)

  • Bernhofen, D., and J. Brown (2004): “A Direct Test of the Theory of Comparative Advantage: The Case of Japan”, Journal of Political Economy, vol. 112, no. 1, pp. 48-67.
  • Eaton, J., and S. Kortum (2002): “Technology, Geography and Trade”, Econometrica, vol. 70, no. 5, pp. 1741–1779.
  • David Atkin, Amit K. Khandelwal, Adam Osman, Exporting and Firm Performance: Evidence from a Randomized Experiment, The Quarterly Journal of Economics, Volume 132, Issue 2, May 2017, Pages 551–615, https:/​​/​​doi.org/​​10.1093/​​qje/​​qjx002

 

Part 2 and 3 (selection)

  • Melitz, M. (2003): “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”, Econometrica, vol. 71, no. 6, pp. 1695–725.
  • Helpman, E., M.J. Melitz, and S.R. Yeaple (2004): “Export versus FDI with Heterogeneous Firms”, American Economic Review, vol. 94, no. 1, pp. 300–16.
  • Anderson, James E., and Van Wincoop. “Gravity with Gravitas: A Solution to the Border Puzzle.” American Economic Review 93, no. 1 (2003): 170–92.
  • Barjamovic, G.,  Chaney T. Coşar K.,  and Hortaçsu, Ali.  “Trade, Merchants, and the Lost Cities of the Bronze Age”, The Quarterly Journal of Economics, Volume 134, Issue 3, August 2019, Pages 1455–1503, https:/​​/​​doi.org/​​10.1093/​​qje/​​qjz009
  • Hummels, D., Jørgensen, R,. Munch, J., and Xiang C. 2014. “The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data.” American Economic Review 104, no. 6:1597–1629.
  • Fajgelbaum P., Goldberg P., Kennedy, P., Khandelwal A., The Return to Protectionism, The Quarterly Journal of Economics, Volume 135, Issue 1, February 2020, Pages 1–55, https:/​​/​​doi.org/​​10.1093/​​qje/​​qjz036

 

Full list of readings and complementary material (e.g. podcasts and videos) will be announced at the beginning of the course.

Additional readings will be announced at the beginning of the course.

It is recommended that students have followed the course “International Economics” at the Studies of Economics, University of Copenhagen (or a course equivalent to this) prior to taking “Advanced International Trade”.

It is recommended to have a basic knowledge of econometrics as the course "Econometrics I" at the Studies of Economics, University of Copenhagen or a similar course before taking this course.
Lectures.

Office hours are offered on request.
Schedule:
3 hours lectures every week from week 36 to 50 (except week 42).

Schema:
The overall schema for the Master can be seen at KUnet:
MSc in Economics => "Courses and teaching" => "Planning and overview" => "Your timetable"

Timetable and venue:
To see the time and location of lectures please press the link under "Timetable"/​"Se skema" at the right side of this page (E means Autumn).

You can find the similar information partly in English at
https:/​/​skema.ku.dk/​ku2425/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E24; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Efterår/Autumn”
Press: “ View Timetable”

Please be aware:
- The schedule of the lectures can change without the participants´ acceptance. If this occur, you can see the new schedule in your personal timetable at KUnet, in the app myUCPH and through the links in the right side and the link above.
- It is the students´s own responsibility continuously throughout the study to stay informed about their study, their teaching, their schedule, their exams etc. through the curriculum of the study programme, the study pages at KUnet, student messages, the course description, the Digital Exam portal, Absalon, the personal schema at KUnet and myUCPH app etc.
  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • Total
  • 206
Oral
Collective

 

The students receive oral collective feedback during the lectures.
Each student receives written individual feedback on the mandatory assignment.

Credit
7,5 ECTS
Type of assessment
On-site written exam, 3 hours under invigilation
Type of assessment details
ITX-exam in the exam venues of the university.
The exam assignment is in English and must be answered in English.
Exam registration requirements

To qualify for the exam the student must during the semester and no later than the given deadline

  • Hand in and have approved one mandatory assignment.
Aid

No aids allowed at the written ITX-exam.

 

Marking scale
7-point grading scale
Censorship form
No external censorship
for the written exam. The written ITX-exam may be chosen for external assessment by random sample.
An oral re-examination may be with external assessment.
Exam period

Exam information:

The examination date can be found in the exam schedule  here

The exact time and place will be available in Digital Exam from the middle of the semester. 

More information about examination, rules, aids etc. at Master(UK) and Master(DK)

Re-exam

No aids allowed during the examination.

Reexam info:

The reexamination date/period can be found in the reexam schedule  here

Exact type, day, time and place is available in Digital Exam in February.

More info: Master(UK) and Master(DK)

Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

 

In order to obtain the top grade "12" , the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.

 

In order to obtain the pasing grade “02”, the student must in a satisfactory way be able to demonstrate a minimal acceptable level of  the knowledge, skills and competencies listed in the learning outcomes.