Advanced International Trade
Course 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:
- Models featuring monopolistic competition
- The Melitz model of trade with heterogeneous firms
- Empirical and theoretical foundations of the gravity equation
- How globalization impacts the labor market and income inequality, e.g. through offshoring.
- Foreign direct investments & multinational enterprises
- Theoretical motivations of import tariffs, and recent empirical consequences (e.g. the US-China trade war)
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. The focus of the report varies from year to year, but students have previously been asked to assess how trade and welfare are impacted by regional trade agreements, further extensions of the EU, and economic sanctions. 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.
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
After completing the course the student is expected to be able to:
Knowledge:
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Identify and account for the core theories of international trade.
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Account for the stylized facts and direct empirical tests of the core theories of international trade.
Skills:
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Analyze and critically reflect on main predictions of core theories of international trade.
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Analyze trade-related questions by use of relevant theories and methods.
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Communicate and discuss key concepts in international trade on a scientific manner.
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Provide an overview of recent theoretical and empirical developments in the field.
Competences:
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Read the most recent theoretical and empirical research in international trade
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Apply relevant theories and concepts in independent work to analyze new problems and policy proposals
Lectures.
Office hours are offered on request.
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.
- Dornbusch, R., S. Fischer and P.A. Samuelson (1977): “Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods”, American Economic Review, vol. 67, no. 5, pp. 823–831.
- Eaton, J., and S. Kortum (2002): “Technology, Geography and Trade”, Econometrica, vol. 70, no. 5, pp. 1741–1779.
Part 2 and 3 (selection)
- Krugman, P. (1979): “Increasing returns, monopolistic competition and international trade”, Journal of International Economics 9, pp. 469-479
- 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 (2003): “Gravity with Gravitas: A Solution to the Border Puzzle”, American Economic Review 93, no. 1, pp. 170–92.
- 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.
- Autor, D.H., D. Dorn, and G.H. Hanson (2013), “The China Syndrome: Local Labor Market Effects of Import Competition in the United States”, American Economic Review 103, pp. 2121–2168.
- 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 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.
Schedule:
3 hours lectures every week from week 36 to 50 (except week
42).
The students receive oral collective feedback during the
lectures.
Each student receives written individual feedback on the mandatory
assignment.
for enrolled students: Rules etc at Master(UK) and Master(DK)
When registered you will be signed up for exam.
- Full-degree students – sign up at Selfservice on KUnet
- Exchange and guest students from abroad – sign up through Mobility Online and Selfservice- read more through this website.
- Credit students from Danish universities - sign up through this website.
- Open University students - sign up through this website.
The dates for the exams are found here Exams – Faculty of Social Sciences - University of Copenhagen (ku.dk)
Please note that it is your own responsibility to check for overlapping exam dates.
- ECTS
- 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.
- Examination prerequisites
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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
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
for the written exam.
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
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20 min. oral exam. No preparation time. No aids allowed during the examination.
Reexam info:
The reexamination date/period can be found in the reexam schedule here
Exact day, time and place is available in Digital Exam in February.
More info: Master(UK) and Master(DK)
Criteria for exam assessment
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.
Single subject courses (day)
- Category
- Hours
- Lectures
- 42
- Preparation
- 161
- Exam
- 3
- English
- 206
Kursusinformation
- Language
- English
- Course number
- AØKK08214U
- ECTS
- 7,5 ECTS
- Programme level
- Full Degree Master
Ph.D.
- Duration
-
1 semester
- Placement
- Autumn
- Price
-
Information about admission and tuition fee: Master and Exchange Programme, credit students and guest students (Open University)
- Studyboard
- Department of Economics, Study Council
Contracting department
- Department of Economics
Contracting faculty
- Faculty of Social Sciences
Course Coordinator
- Björn Thor Arnarson (3-6476634267657170306d7730666d)
Teacher
See 'Course Coordinators'.
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Kursusinformation for indskrevne studerende