Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.
The course introduces the students to international trade theory and applied (empirical) trade economics at the level required for applied economists. It also provides a basic foundation of knowledge in international trade theory for more advanced PhD level courses.
Schedule: 08.01.2019 - 19.02.2019
Teacher in charge (valid 01.08.2020-31.07.2022): Juuso Välimäki
Teacher in charge (applies in this implementation): Svetlana Ledyaeva, Katariina Nilsson Hakkala
Contact information for the course (valid 21.11.2018-21.12.2112):
Aalto University & ETLA, email@example.com
Ledyaeva, Aalto University, Svetlana.firstname.lastname@example.org
Tolga Benzer, Aalto, email@example.com
Andrey Zhukov, Aalto, firstname.lastname@example.org
CEFR level (applies in this implementation):
Language of instruction and studies (valid 01.08.2020-31.07.2022):
Teaching language: English
Languages of study attainment: English
CONTENT, ASSESSMENT AND WORKLOAD
This course studies the determinants and effects of international trade and investment. We start with the classical models of trade theory, including the Ricardian theory of comparative advantage and the Heckscher–Ohlin model. We then cover more modern trade models that incorporate economies of scale and imperfect competition. When presenting each theoretical model, we examine how they fare relative to the data, and contextualize them with specific empirical examples. In the last part of the course, we examine trade policy. We study the effects of different types of trade policies and ask what would be the optimal trade policies. Time permitting, we will also discuss the effects of the COVID-19 pandemic on international trade.
Applies in this implementation:
Inter-industry Specialization, Comparative Advantage,
and basic Trade Policy
Lecture 2. Comparative
advantage (Svetlana Ledyaeva)
Lecture 3. Relative
Factor Abundance: The Heckscher-Ohlin –Model (Svetlana Ledyaeva)
Lecture 4. Trade
Policy: Tariffs, Quotas and NTMs (Svetlana Ledyaeva)
Intra-industry Specialization, Imperfect Competition
and Strategic trade policy
Lecture 5. Increasing
Returns to Scale and Imperfect competition (Svetlana Ledyaeva)
Lecture 6. Intra-industry
trade and Gravity modelling (Svetlana Ledyaeva)
Strategic & applied trade policy (Katariina Nilsson Hakkala)
Lecture 8. Firm
heterogeneity and the Melitz model (Katariina Nilsson Hakkala)
Multinational Firms, Foreign Direct Investment and
Labour market impacts of trade
Lecture 9. Multinational
Firms and Fragmentation of Production (Katariina Nilsson Hakkala)
Offshoring and labor markets (Katariina Nilsson Hakkala)
Lecture 11. Globalization
and income inequality (Katariina Nilsson Hakkala)
Assessment Methods and Criteria
Examination, exercises, and class contribution.
In total 160h, consisting of lectures and exercises and independent work.
Krugman, P. R., Obstfeld, M., & Melitz, M. J. (2018). International trade: theory & policy. Pearson Education Limited.
Feenstra, R. C. (2015). Advanced international trade: theory and evidence. Princeton university press.
Other readings assigned during the course.
Applies in this implementation:
You are expected to read all chapters and articles allocated to each
lecture before the lectures, thank you.
Lecture notes will be published online after the lectures.
Two of the advanced Microeconomics courses (31E11000, 31E11100, 31E12000, 31E12100, 31E99906 and 31E13000)