ECONOMICS 425 International Trade Theory and Policy
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
ECONOMICS 425
International Trade Theory and Policy Detailed Course Outline
Fall 2021
I. Introduction
A. Empirical Observations
B. Overview of Theoretical Models
FT: Ch. 1
KOM: Chs. 1-2; MMKM: Ch. 1
II. Classical (Ricardian) Model of Trade
A. Introduction
B. Description of the Model
C. The Production Possibilities Frontier
D. Closed Economy (Autarkic) Equilibria
E. Absolute and Comparative Advantage and the Pattern of Trade
F. Open Economy (Trading) Equilibria
G. Terms of Trade
H. Empirical Evaluation
FT: Ch. 2
KOM: Ch. 3; MMKM: Ch. 7
III. Specific-Factors Model of Trade
A. Introduction
B. Description of the Model
C. The Production Possibilities Frontier
D. Autarkic Equilibria
E. Trading Equilibria
FT: Ch. 3
KOM: Ch. 4; MMKM: Ch. 9
IV. Factor Proportions Models of Trade Part I: Heckscher-Ohlin(-Samuelson) Model
A. Introduction
B. Description of Factor Proportions Models of Trade
C. Production Possibilities Frontier
D. Autarkic Equilibria
E. Trading Equilibria
F. Heckscher-Ohlin(-Samuelson) Theorem
G. E↵ect of Trade Factor Prices
FT: Ch. 4
KOM: Ch. 5; MMKM: Chs. 2,4,8
V. Factor Proportions Models of Trade Part II: Heckscher-Ohlin-Vanek Model
A. Description
B. Factor Contents of Trade
C. Factor Abundance Definition
D. Factor Content Theorems
E. Combining Factor Supply and Technology Di↵erences
F. Empirical Evaluation of Factor Content Theorems
FT: Ch. 4
KOM: Ch. 5; MMKM: Chs. 2,4,8
VI. Gains from Trade and a Summary of Trade Models with Constant Returns to Scale and Perfect Competition
A. General Points
B. Gains From Trade Theorem
C. Summary
MMKM: Ch. 5
VII. Trade Policy under Perfect Competition
A. Introduction
B. Unilateral Import Tari↵s
C. Bilateral Import Tari↵s
D. Unilateral Import Quotas
E. Voluntary Export Restraints
FT: Ch. 8
KOM: Ch. 9-10; MMKM: Ch. 15-16
VIII. Trade with Increasing Returns to Scale, Imperfect Competition, and Firms with Identical Technologies
A. Introduction
B. Imperfect Competition
C. Increasing Returns to Scale in Production
D. Monopolistic Competition Model of Trade
E. Discussion on Types of Trade
FT: Ch. 6
KOM: Ch. 8, pp. 164-180; MMKM: Chs. 11-12;
IX. Trade with Increasing Returns to Scale, Imperfect Competition, and Firms with Di↵erent Technologies
A. Introduction
B. Empirical Facts from Firm and Plant Level Data
C. A Basic Model
D. Extensions to the Basic Model
KOM: Ch. 8, pp. 181-187
X. Empirical Studies of Scale E↵ects, Selection E↵ects, and Trade Costs
A. U.S.-Canada Free Trade Agreement
B. Empirical Gravity Models of Trade
FT: Ch. 6
KOM: Ch. 2;
XI. Trade Policy under Imperfect Competition
A. Introduction
B. Tari↵s and Quotas under Imperfect Competition
C. Profit Shifting Motives
D. Infant Industry Protection
E. Antidumping and Countervailing Duties
F. Policy Implications of Recent Trade Theory with Heterogeneous Firms
FT: Ch. 9
KOM: Ch. 9-12; MMKM: Ch. 17
XII. Outsourcing and Global Value Chains
A. Introduction
B. A Model of O↵shoring
C. Summary
FT: Ch. 7;
KOM: Ch. 8, pp. 183-187
2021-12-13