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International trade in the global economy (ex International trade: economics and policy)

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Course Description

This course will provide students with an analytical framework for the study of international trade.
It is divided in two parts. The first considers both the predictions of the Neoclassical trade theory (i.e., the Ricardian Model and the Heckscher-Ohlin Model) and the new trade models with imperfect competition, including the most recent developments related to firm-level evidence. The second part discusses the effects and the political economy determinants of trade policy. International agreements multilateral trade liberalization and on regional trade liberalization will be also discussed.
The course considers both the theories and recent empirical works, as well as a discussion of the relevant methodological issues in measurement and estimation.

Final exam


Lectures will be held in the second semester, from February to May 2017, according to the following schedule:
• Tuesday 15:30-17:30
• Wednesday 15:30-17:30
• Thursday 15:30-17:30

Il corso si svolge nel II semestre (dal 27/2/2017 al 31/5/2017)

Docenti: Luca Salvatici (docente titolare)

Crediti: 9

Numero moduli: 2

Date di esame


Course Outline
The outline below includes the main topics will be dealt with in the course. It is arranged for the most part in the typical order in which course will be taught. The order can be changed as appropriate to meet the instructor’s objectives, including coverage of additional content.

Main topics include:

1. International trade: stylized facts
• facts, changes and history of globalization
• new players: the Emerging Economies

2. Trade Theories
• The Absolute and Comparative Advantage
• The Ricardian Model
• The Specific- Factors Model
• Factor endowments and the Heckscher-Ohlin Model
• The New Trade Theories
• Firms in international trade

3. Trade Policy
• The Gains from Trade
• Import Tariffs for a Small and Large Country
• Import Quotas
• Export subsidies and taxes
• Tariffs and quotas with imperfect competition
• The problems related to the measure of trade protection
• Non-tariff barriers
• Political economy of trade policy
• Dumping and infant industry protection

4. Trade liberalization
• Multilateral trade integration: the World Trade Organization
• Regional trade integration: trade creation and trade diversion
• Trade preferences

5. Lab sessions:
• Trade and trade policies data sources
• Working with trade and trade policies data
• Simulations with a computable general equilibrium model

[ ultimo aggiornamento 14/7/2017 ]


Reference Book:
International Trade, R. C. Feenstra and A.M Taylor, Second Edition, 2011, Worth Publishers, selected chapters.
Reference Articles:
Some topics rely heavily on journal articles and papers. A complete reading list will be announced in the lectures and published on the Website.

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