University of Oxford, Michaelmas Term International Trade I

Transcription

1 University of Oxford, Michaelmas Term 2011 International Trade I J. Peter Neary (peter.neary@economics.ox.ac.uk) (Room 2112, Manor Road Building; ; Office Hours: Thursdays or to make an appointment) Lecture Times: Monday, a.m.-1 p.m., and Tuesday, p.m., Seminar Room D, Manor Road Building; weeks 1-8. The objective of this 24-hour course is to give a self-contained introductory overview of the theory of international trade at an advanced level, not neglecting important older work but leading up to the research frontier on a number of hot topics. In addition to these sixteen lectures in Michaelmas Term, there will be sixteen lectures in Hilary term: two by me (more on firms and trade), eight by Tony Venables (on trade policy, economic geography, and related topics); and six by Beata Javorcik (on empirical aspects of trade). Students who plan to take International Trade as an M.Phil. option are also expected to attend the regular seminars, held on alternate Tuesdays at p.m. during all three terms in Seminar Room C. A modest background in mathematics and microeconomic theory will be assumed. Starred papers in the list below will be covered in more detail. The list includes many of my own papers, in some cases because I will use their expository style in lectures rather than because of their originality. Most of these are available (in pdf format) by clicking below or on my web-site: The home page for this course, with links to a clickable version of this reading list and all lecture notes, is: General References: Texts and Monographs Dixit, A.K. and V. Norman (1980): Theory of International Trade: A Dual, General Equilibrium Approach, London: Cambridge University Press. Feenstra, R.C. (2004): Advanced International Trade: Theory and Evidence, Princeton: Princeton University Press. Helpman, E. and P.R. Krugman (1985): Market Structure and Foreign Trade, Cambridge, Mass.: M.I.T. Press.

2 READING LIST AND COURSE OUTLINE 1: INTRODUCTORY OVERVIEW Jones, R.W. and J.P. Neary (1984): The positive theory of international trade, in R.W. Jones and P.B. Kenen (eds.): Handbook of International Economics: Volume 1 International Trade, Amsterdam: North-Holland, Chapter 1. Anderson, J.E. and E. van Wincoop (2004): Trade costs, Journal of Economic Literature, 42:3, Freund, Caroline (2009): Demystifying the collapse in trade, at VoxEU.org, 3 July: 2: TRADE AND COMPARATIVE ADVANTAGE * 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, 67, ; reprinted in Neary (1995). Wilson, C. (1980): "On the general structure of Ricardian models with a continuum of goods: Applications to growth, tariff theory and technical change, Econometrica, 48, Eaton, J. and S. Kortum (2002): Technology, geography and trade, Econometrica, 70:5, September, : THE NEOCLASSICAL TRADE MODEL * Dixit and Norman, Chap. 2 (esp. Sections 2.1, 2.4); and Chaps. 3 and 4 (esp. Sections 3.2, 4.1, 4.2) * Neary, J.P. (1988): "Determinants of the equilibrium real exchange rate, American Economic Review, 78 (March), ; reprinted in Neary (1995). * Neary, J.P. and A.G. Schweinberger (1986): "Factor content functions and the theory of international trade, Review of Economic Studies, 53, Jones, R.W. (1965): "The structure of simple general equilibrium models, Journal of Political Economy, 73, Ethier, W. (1974): "Some of the theorems of international trade with many goods and factors, Journal of International Economics, 4, ; reprinted in Neary (1995). Helpman and Krugman (1986), Chapter 1. Neary, J.P. (1978): "Short-run capital specificity and the pure theory of international trade, Economic Journal, 88,

3 4: CES PREFERENCES WITHOUT MONOPOLISTIC COMPETITION: DEMAND, GRAVITY, AND TASTE FOR VARIETY * Anderson, J.E. and E. van Wincoop (2003): Gravity with gravitas: A solution to the border puzzle, American Economic Review, 93:1, March, Feenstra, R.C. (1994): New Product Varieties and the Measurement of International Prices, American Economic Review, 84:1, March, Broda, C. and D.E. Weinstein (2006): Globalization and the Gains from Variety, Quarterly Journal of Economics, 121:2, May, : MONOPOLISTIC COMPETITION * Krugman, P.R. (1979): "Increasing returns, monopolistic competition and international trade, Journal of International Economics, 9, Dixit and Norman (1980), Section 9.3. * Neary, J.P. (2009): Putting the 'new' into new trade theory: Paul Krugman's Nobel Memorial Prize in Economics, Scandinavian Journal of Economics, 111:2, June, Neary, J.P. (2003): Monopolistic Competition and International Trade Theory, in S. Brakman and B.J. Heijdra (eds.): The Monopolistic Competition Revolution in Retrospect, Cambridge: Cambridge University Press, 2003, Helpman, E. (1981): International trade in the presence of product differentiation, economies of scale, and monopolistic competition: A Chamberlin-Heckscher-Ohlin model, Journal of International Economics, 11, Ethier, W. (1982): National and international returns to scale in the theory of international trade, American Economic Review, 72, Lawrence, C. and P.T. Spiller (1983): Product diversity, economies of scale, and international trade, Quarterly Journal of Economics, 98, a. SOME EMPIRICS OF EXPORTING FIRMS Clerides, S.K., S. Lach and J.R. Tybout (1998): Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco, Quarterly Journal of Economics, August, * Bernard, A.B., J.B. Jensen, S.J. Redding, and P.K. Schott (2007): Firms in International Trade, Journal of Economic Perspectives, 21:3, Summer,

4 Mayer, T. and G.I.P. Ottaviano: The Happy Few: The Internationalisation of European Firms; New Facts based on Firm-level Evidence, Intereconomics, 43:3, b: FIRM HETEROGENEITY AND THE BOUNDARIES OF THE FIRM * Melitz, M.J. (2003): The impact of trade on intra-industry reallocations and aggregate industry productivity, Econometrica, 71 (6), Chaney, T. (2008): Distorted Gravity: The Intensive and Extensive Margins of International Trade, American Economic Review, 98:4, September, Melitz, M. and G. Ottaviano (2008): Market Size, Trade, and Productivity, Review of Economic Studies, 75:1, January, Bernard, A.B., S.J. Redding, and P.K. Schott (2007): Comparative Advantage and Heterogeneous Firms, Review of Economic Studies, 74, January, Antràs, P. (2003): Firms, contracts, and trade structure, Quarterly Journal of Economics, 118: 4, November, Antràs, P. and E. Helpman (2004): Global sourcing, Journal of Political Economy, 112: 3, June, * Mrázová, M., and J.P. Neary (2011): Selection Effects with Heterogeneous Firms, mimeo., Department of Economics, University of Oxford. 7: OLIGOPOLY AND TRADE: FROM PARTIAL TO GENERAL EQUILIBRIUM * Brander, J.A. (1981): Intra-industry trade in identical commodities, Journal of International Economics, 11, 1-14; reprinted in Neary (1995). Brander, J.A. and P.R. Krugman (1983): A 'reciprocal dumping' model of international trade, Journal of International Economics, 15, ; reprinted in Grossman (1992). * Neary, J.P. (2003): Globalization and market structure, Journal of the European Economic Association, 1:2-3, April-May, Neary, J.P. (2003): The road less travelled: Oligopoly and competition policy in general equilibrium, in R. Arnott, B. Greenwald, R. Kanbur and B. Nalebuff (eds.): Economics for an Imperfect World: Essays in Honor of Joseph E. Stiglitz, Cambridge, Mass.: MIT Press, Neary, J.P. (2003): Competitive versus comparative advantage, The World Economy, 26:4, April,

5 Neary, J.P. (2009): International trade in general oligopolistic equilibrium, mimeo. Neary, J.P. (2010): Two and a Half Theories of Trade, The World Economy, 33:1, : FOREIGN DIRECT INVESTMENT Helpman, E. (1984): A simple theory of international trade with multinational corporations, Journal of Political Economy, 92, ; or Helpman-Krugman (1986), chaps Markusen, J.R. (2002): Multinational Firms and the Theory of International Trade, Cambridge, Mass.: MIT Press. Helpman, E., M.J. Melitz and S.R. Yeaple (2004): Export versus FDI with heterogeneous firms, American Economic Review, 94:1, March, Neary, J.P. (2009): Trade costs and foreign direct investment, International Review of Economics and Finance, 18:2, March, Neary, J.P. (2007): Cross-border mergers as instruments of comparative advantage, Review of Economic Studies, 74:4, October, [IF TIME PERMITS] 9. MULTI-PRODUCT FIRMS * Eckel, C. and J.P. Neary (2010): Multi-Product Firms and Flexible Manufacturing in the Global Economy, Review of Economic Studies 77:1, January, Bernard, Andrew B., Stephen Redding and Peter K. Schott (2010): Multiple-Product Firms and Product Switching, American Economic Review, 100:1, March, Bernard, Andrew B., Stephen Redding and Peter K. Schott (2011): Multi-Product Firms and Trade Liberalization, Quarterly Journal of Economics, 126(3): Nocke, Volker and Stephen Yeaple (2005): Globalization and Endogenous Firm Scope, mimeo.