Course description
The course covers the Heckscher-Ohlin-Samuelson and its basic results. In addition the course cowers newer theories of trade and imperfect competition such as the Dixit-Stiglitz model of international trade, the HOS model with imperfect competition, unequal trade and the home market effect, models with trading costs, and the gravity model.
Required reading list
Helpman, E. and P. Krugman, 1985, Market Structure and Foreign Trade. Increasing Returns, Imperfect Competition, and the International Economy. Cambridge MA/ London: MIT Press.
Hoekman, B. M. and M. Kostecki, The Political Economy of the World Trading System, Oxford University Press, Second edition 2001.
Krugman, P. , 1991, Geography and Trade, Leuven/Cambridge MA/London: Leuven University Press/ MIT Press.
Brander, J. and P. Krugman, 1983, A 'Reciprocal Dumping' Model of International Trade, Journal of International Economics, Vol. 15, 1983, page: 313-321. The article can be obtained from the economic department office.
Dornbusch, R; S. Fischer; P. A. Samuelson, 1977, Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods, The American Economic Review, Vol. 67, No. 5, Dec., 1977, page: 823-839. Download the article from JSTOR
Jones, R., 1965, "The Structure of Simple General Equilibrium Models", Journal of Political Economy 73: pp. 557-72. Download the article from JSTOR
Krugman, Paul, 1979, A Model of Innovation, Technology Transfer, and the World Distribution of Income, The Journal of Political Economy, Vol. 87, No. 2, Apr., 1979, pp. 253-266. Download the article from JSTOR
Lancaster, K., 1982, Comment, pp. 208-216 in *Bhagwati, J. (ed) Import Competition and Response_, Chicago/London: University of Chicago Press. The article can be obtained from the economic department office.
Lucas, Robert E. Jr., 1988, On the mechanics of economic development, Journal of Monetary Economics, Vol. 22, No. 1, Pages 3-42. The article can be obtained from the economic department office.
Markusen, James R.; A. J. Venables, 1998, Multinational firms and the new trade theory, Journal of International Economics, Vol. 46, No. 2, page 183-203. Download the article from Journal of International Economics
Mundell, R., 1957, International Trade and Factor Mobility. The American Economic Review, Vol. 47, No. 3, pp. 321-335. Download the article from JSTOR
Puga, D.; A. J. Venables, 1998, Trading Arrangements and Industrial Development, The World Bank Economic Review, Vol. 12, No. 2, page: 221-249. The article can be obtained from the economic department office.
Rodriguez, F.; D. Rodrik, 1999, Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence, NBER Working Paper No. w7081. The paper can be downloaded from NBER
Additional reading list
Markusen, James R., James R. Melvin, William H. Kaempfer og Keith E. Maskus, International Trade. Theory and Evidence, McGraw-Hill 1995.