Advanced International Trade
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Readings and lecture notes so far

I. Introduction

• (1) Introduction to duality, and the gains from trade
  • (1.1) LECTURE NOTES
  • (1.2) readings:
    - A Dixit and V. Norman, Theory of International Trade, Cambridge University Press: Cambridge, 1980/1986: CHAPTER 2.
    - A Dixit and V. Norman, Theory of International Trade, Cambridge University Press: Cambridge, 1980/1986: CHAPTER 3.
    - J.R. Markusen, J.R. Melvin, W.H. Kaempfer, and K.E. Maskus 1995, International Trade: Theory and Evidence, McGraw-Hill, CHAPT 4.
    - J.R. Markusen, J.R. Melvin, W.H. Kaempfer, and K.E. Maskus 1995, International Trade: Theory and Evidence, McGraw-Hill., CHAPT 5.

II. Basic Trade Models with Homogeneous Products

• (2) Trade based on technology: The Ricardian model
  • (2.1) LECTURE NOTES
• (3) Trade based on endowments: The Specific Factors and Heckscher-Ohlin Models
  • (3.1) LECTURE NOTES
    • Ricardo-Viner Model
    • Heckscher-Ohlin Model
  • (3.2) readings:
    - Feenstra Chapter 1
    - Caves and Jones math supplement
    

III. Basic Trade Trade with Heterogeneous Products and Scale Economies

• (4) CES-based trade (heterogeneous products)
  • CES functions
    - LECTURE NOTES
    - math note
  • Armington models -- national product differentiation
    - LECTURE NOTES
    - J. de Melo and S. Robinson (1989), "Product Differentiation and the Treatment of Foreign Trade in Computable General Equilibirum Models of Small Open Economies," Journal of International Economics.
  • The basic Ethier-Krugman model and some variations -- firm level differentiation
    - LECTURE NOTES -- trade with scale economies
    -Krugman, P., "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review 70 (December 1980), 950-959.
    - Ethier, W.J., "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review 72 (June 1982), 950-959.
    - J. Francois and D. Nelson, “A Geometry of Specialization,” Economic Journal, July 2002, 649-678.
    - J.N. Bhagwati, A. Panagariya, and T.N. Srinivasan, Lectures on International Trade, second edition, MIT Press, 1998. Chapter 11.
  • Trade with ologopoly (notes)
    

IV. Some Aspects of Commerical Policy

• (5) Commerical policy LECTURE NOTES -- basics of tariffs, welfare, and political economy
• (6) Inequality and Trade Policy
  LECTURE NOTES
  
• (7) Scale Economies and Trade Policy
  (See scale economy notes under III above)
• Some reading
  - Dixit and Norman chapter 6, "Welfare and Trade Policy"
  - Feenstra Chapter 7 , "Import Tariffs and Dumping"
  - J.N. Bhagwati, A. Panagariya, and T.N. Srinivasan, Lectures on International Trade, second edition, MIT Press, 1998. Chapter 30.
  - J.F. Francois and H. Rojas-Romagoas, "Equity, Welfare, and the Setting of Trade Policy in General Equilibrium," CEPR discussion paper 2006.

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