The objectives of this module is to familiarize students with the basic theories of international trade and to expose them to the latest theoretical and empirical advances in the field. By doing so, students should develop a clearer sense of what constitutes a good research topic (especially in the field of international trade). The course should equip them with skills and knowledge useful to better understand the current debates surrounding trade policy.
Course outline : This course covers the most important theories of international trade and their applications. Each week, the rigorous presentation of theoretical contributions is accompanied by a comprehensive overview of the corresponding empirical validations. The first part of the module quickly reviews the neoclassical theories of trade in the simplest frameworks, and then extends their predictions to more recent and realistic settings. The second part covers models of monopolistic competition with homogeneous and heterogenous firms. It also defines a unifying theoretical framework that can encompass different market structures and is often used for quantitative analysis. The third and last of part of the module applies the theoretical and empirical tools used in the first two parts to the study of three research topics that have recently received strong attention in the field.
- Part I : Neoclassical trade models
Factor proportions theories
- Part II : Monopolistic competition and firms
Monopolistic competition with homogeneous firms
Monopolistic competition with heterogeneous firms
Gravity models and gains from trade
- Part III : Selected topics in international trade
Trade and labour markets
Global supply chains and multinationals