TAMU ECONOMICS 652 FALL 2008INTERNATIONAL TRADE THEORYProfessor Amy Glass3062 Allen Building(979) 845-8507, [email protected]://econweb.tamu.edu/aglass/econ652/I will lecture on the required readings (denoted by *); each of you will present one of the optional readings.Presentation papers and dates (last three classes) are assigned on a …rst come, …rst served basis. Also writea (pretend) referee report on an unpublished working paper covering a topic related to material from thiscourse. Your grade in this course will be based on: a referee report 20%, a presentation 30%, and a …nalexam 50%. I will distribute instructions for the referree report and presentation, as well as s ample examquestions. If you do not plan to take the …eld exam in International Economics, you may write a researchpaper instead of the …nal exam (you may take an incomplete and to turn in your paper later). Bhagwati, Jagdish N. et al. 1998. Lectures on International Trade, Second Edition. Cambridge, MA:MIT Press. Dixit, Avinash and Victor Norman 1980. Theory of International Trade. Cambridge: CambridgeUniversity Press. Ethier, Wilfred J. 1995. Modern International Economics, Third Edition. New York: Norton. Fennstra, Robert C. 2004. Advanced International Trade: Theory and Evidence. Princeton, NJ:Princeton University Press. *Grossman, Gene M., ed., 1992. Imperfect Competition and International Trade. Cambridge, MA:MIT Press. Grossman, Gene M. and Elhanan Helpman 1991. Innovation and Growth in the Global Economy.Cambridge, MA: MIT Press. Grossman, Gene M. and Kenneth Rogo¤, eds., 1995. Handbook of International Economics, Volume3. Amsterdam: North-Holland.1 *Helpman, Elhanan and Paul R. Krugman 1985. Market Structure and Foreign Trade. Cambridge,MA: MIT Press. Helpman, Elhanan and Paul R. Krugman 1989. Trade Policy and Market Structure. Cambridge, MA:MIT Press. Jones, Ronald W. and Peter B. Kenen, eds., 1984. Handbook of International Economics, Volume 1.Amsterdam: North-Holland. Krugman, Paul R. 1990. Rethinking International Trade. Cambridge, MA: MIT Press. Krugman, Paul R. 1991. Geography and Trade. Cambridge, MA: MIT Press. Markusen, James R. et al. 1995. International Trade: Theory and Evidence. New York: McGraw-Hill. Wong, Kar-yiu 1995. International Trade in Goods and Factor Mobility. Cambridge, MA: MIT Press.1 OVERVIEW *Ethier, Wilfred J. 1987. “The Theory of International Trade.” In Lawrence H. O¢ cer, ed., Interna-tional Economics. Norwell, MA: Kluwer.2 GAINS FROM TRADE AND COMPARATIVE ADVANTAGE *Ethier, pp. A3-A13 Deardor¤, Alan V. 2005. “How Robust is Comparative Advantage?”Review of International Economics13: 1004-1016. Deardor¤, Alan V. 1980. “The General Validity of the Law of Comparative Advantage.” Journal ofPolitical Economy 88: 941-957. JStor Dixit and Norman, pp. 1-8, 29-43, 59-80, 93-96 Jones, Ronald W. 1961. “Comparative Advantage and the Theory of Tari¤s: A Multi-Country, Multi-Commodity Model.”Review of Economic Studies 77: 161-175. JStor23 FACTOR ENDOWMENTS *Ethier, pp. A18-A38 *Davis, Donald R. and David E. Weinstein 2001. “An Account of Global Factor Trade.” AmericanEconomic Review 91: 1423-1453. JStor Bernhofen, Daniel M. and John C. Brown 2005. “An Empirical Assessment of the Comparative Ad-vantage Gains from Trade: Evidence from Japan.” American Economic Review 95: 208-225. Bernhofen, Daniel M. and John C. Brown 2004. “A Direct Test of the Theory of Comparative Advan-tage Gains from Trade: The Case of Japan.” Journal of Political Economy 112: 48-67. Bowen, H.P., Edward E. Leamer, and L. Sveikauskas 1987. “Multicountry, Multifactor Tests of theFactor Abundance Theory.”American Economic Review 77: 791-809. JStor Choi, Yong-Seok and Pravin Krishna 2004. “The Factor Content of Bilateral Trade: An EmpiricalTest.”Journal of Political Economy 112: 887-914. Deardor¤, Alan V. 1985. “Testing Trade Theories and Predicting Trade Flows.”In Jones and Kenen. Dixit and Norman, pp. 85-92 Ethier, Wilfred J. 1985. “Higher Dimensional Issues in Trade Models.”In Jones and Kenen. Helpman, Elhanan 1984. “The Factor Content of International Trade.” Economic Journal 94: 84-94.JStor Mayer, Wolfgang 1978. “Short-Run and Long-Run Equilibrium for a Small Open Economy.” Journalof Political Economy 82: 955-968. JStor Tre‡er, Daniel 1995. “The Case of the Missing Trade and Other Mysteries.” American EconomicReview 85: 1029-1046. JStor4 INCREASING RETURNS TO SCALE *Ethier, Wilfred J. 1979. “Internationally Decreasing Costs an d World Trade.” Journal of Interna-tional Economics 9: 1-24. SciD3 *Ethier, Wilfred J. 1982. “Decreasing Costs in International Trade and Frank Graham’s Argument forProtection.” Econometrica 50: 1243-1268. JStor *Helpman and Krugman pp. 45-66 Mathews, R.C.O. 1945. “Reciprocal Demand and Increasing Returns.” Review of Economic Studies:149-154. JStor Rauch, James E. 1989. “Increasing Returns to Scale and the Pattern of Trade.” Journal of Interna-tional Economics 26: 359-369. SciD5 PRODUCT DIFFERENTIATION *Ethier, Wilfred J. 1982. “National and International Returns to Scale in the Modern Theory ofInternational Trade.”American Economic Review 72: 389-405. In Grossman. JStor *Helpman and Krugman 1985, pp. 113-129, 131-157, 159-178 *Krugman, Paul R. 1980. “Scale Economies, Product Di¤erentiation and the Pattern of Trade.”American Economic Review 70: 950-959. In Grossman. JStor Dixit and Norman, pp. 265-295 Krugman. Paul R. 1981. “Intraindustry Specialization and the Gains from Trade.”Journal of PoliticalEconomy 89: 959-973. JStor Krugman, Paul R. 1979. “Increasing Returns, Monopolistic Competition and International Trade.”Journal of International Economics 9: 469-480. SciD Lancaster, Kelvin 1980. “Intra-Industry Trade under Perfect Monopolistic Competition.” Journal ofInternational Economics 10: 151-175. SciD6 OLIGOPOLY *Brander, James A. and Barbara J. Spencer 1985. “Export Subsidies and International Market ShareRivalry.”Journal of International Economics 18: 83-100. SciD4 *Brander, James A. and Paul R. Krugman 1983. “A ‘Reciprocal Dumping’ Model of InternationalTrade.”Journal of International Economics 15: 313-323. In Grossman. SciD *Dixit, Avinash K. and Gene M. Grossman 1986. “Targeted Export Promotion with Several