Università Roma Tre

The course is divided in two parts. The first considers both the predictions of the Neoclassical trade theory (i.e., the Ricardian Model and the Heckscher-Ohlin Model) and the new trade models with imperfect competition, including the most recent developments related to firm-level evidence. The second part discusses the effects and the political economy determinants of trade policy. International agreements multilateral trade liberalization and on regional trade liberalization will be also discussed.
The course considers both the theories and recent empirical works, as well as a discussion of the relevant methodological issues in measurement and estimation.

Course Outline

The outline below includes the main topics will be dealt with in the course. It is arranged for the most part in the typical order in which course will be taught. The order can be changed as appropriate to meet the instructor’s objectives, including coverage of additional content.

Main topics include:

Section 1: International trade: stylized facts

Facts, changes and history of globalization
New players: Emerging economies

Section 2: Trade theories

The Absolute and Comparative Advantage
The Ricardian Model
Factor endowments and the Heckscher-Ohlin Model
The New Trade Theories
Firm Heterogeneity

Section 3: Trade policy

Import Tariffs and Quotas
Export subsidies and taxes
Measuring trade protection
Non-tariff barriers
Political economy of trade policy
Multilateral trade integration: the World Trade Organization
Regional trade integration: trade creation and trade diversion

Section 4: Empirical lab sessions

Trade and trade policies data sources
Working with trade data

Teaching material:
- Lecture slides and other teaching material will be downloadable from the course website.
Textbook:
- International Trade, R. C. Feenstra and A.M Taylor, Third Edition, 2014, Worth MacMillan.
Readings:
- Some topics rely on journal articles and papers.