Advanced International Trade

Course content

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

 

The course will present and discuss recent as well as classic theories of international trade. Empirical evidence is used throughout the course to examine the validity of the presented theories.

 

The course is research-oriented with the goal of introducing students to the latest and most important research in international trade.

 

Topics covered include:

  • Gains from trade and the law of comparative advantage
  • Multi-product Ricardian trade theory
  • Generalized Heckscher-Ohlin theory
  • Monopolistic competition theory with heterogeneous firms
  • Multinationals and the organization of the firm
  • Theory and empirics of the Gravity equation
  • Margins of international trade
  • Trade, tasks, offshoring, immigration and the structure of wages
  • Geography, integration and trade
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. PhD students must contact the study administration AND the lecturer in order to register for the research module and write the research assignment.
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

Lectures.

Restrictions due to Coronavirus:
The teaching in this course may be changed to be taught either fully or partly online due to COVID-19. For further information, please see the course room on Absalon (for enrolled students).

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:

  • 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.
  • 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.
  • Hummels, David and Peter Klenow (2005) “The Variety and Quality of a Nation's Exports” American Economic Review 95, no 3 704-723.
  • Grossman, Gene and Esteban Rossi-Hansberg (2008) “Trading Tasks: A Simple Theory of Offshoring” American Economic Review 98, no. 5:1978-1997.
  • Hummels, David, Rasmus Jørgensen, Jakob Munch, and Chong Xiang. 2014. “The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data.” American Economic Review 104, no. 6:1597–1629.
  • Ottaviano, Gianmarco, Giovanni Peri, and Greg Wright. “Immigration, Offshoring, and American Jobs.” American Economic Review 103, no. 5 (2013):1925–59.
  • 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
  • Pablo D Fajgelbaum, Pinelopi K Goldberg, Patrick J Kennedy, Amit K Khandelwal, 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
  • Trade and Geography, Stephen J. Redding Working Paper 27821 (Handbook Chapter) http://www.princeton.edu/~reddings/papers/TG.pdf 
  • Production Networks, Geography, and Firm Performance, , , and  https://www.journals.uchicago.edu/doi/abs/10.1086/700764
  • Trade, Merchants, and the Lost Cities of the Bronze Age, Gojko Barjamovic, Thomas Chaney, Kerem Coşar, Ali Hortaçsu The Quarterly Journal of Economics, Volume 134, Issue 3, August 2019, Pages 1455–1503, https://doi.org/10.1093/qje/qjz009

 

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

It is strongly 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).

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/​ku2122/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E21; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Efterår/Autumn”
Press: “ View Timetable”

Please be aware:
- It is the students´s own responsibility to continuously update themselves about their studies, 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.

Oral
Collective

 

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

ECTS
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
as an ITX-exam in the exam venues of the university.

The exam assignment is in English and must be answered in English.

Changes due to Coronavirus:
In the event that COVID-19 restrictions may affect the conduction of the ITX-exams, the written exam and the re-sit exam will be changed to a take-home exam with all aids. If done so, the changes will be announced in study messages at KUnet, in the Digital Exam portal and here in the Exam section of the course description.

The take-home exams will still be individual and it is not allowed to communicate with any one about the exam assignment nor the solution at all. It is also prohibited to distribute data and other information at all. If this or alike actions happens, it will be regarded as cheating and plagiarism.
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Aid

No aids allowed at the written ITX-exams.

 

If the ITX-exams are changed to take-home exams due to COVID-19, the written take-home exams will be with all aids.

 

For further information about allowed aids for the re-examination. Please go to the section "Re-exam".

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Marking scale
7-point grading scale
Censorship form
No external censorship
for the written exams. The written ITX-exam may be chosen for external assessment by random sample.

An oral re-examinations may be with external assessment.
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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