The University of the West Indies, Mona

Lecturer

(To be Announced)

Course Description

This course covers classical, neoclassical and new trade theories. Empirical tests of trade models are also examined.

RECOMMENDED  TEXT

There is no required text.

Course Outline

1.Classical Trade Models

Dornbusch, R., S. Fischer and Paul Samuelson (1977) “Comparative     

Advantage, Trade and Payments in a Ricardian Model with a continuum of Goods” AER vol.67 pp 823-839

Golub. S. (1994) Comparative advantage, Exchange rates and sectoral trade balances of major industrial countries. IMF Staff Papers vol. 41 no.2

Neary, J. P. (1978) “ Short run capital specificity and the pure theory of international trade. Economic Journal vol. 88 pp. 488-510

2.Heckscher – Ohlin  and Technology Models

Bowen, H.P, E. E. Leamer and L. Sveikaukaus (1987) “Multi country, multi factor tests of the factor abundance theory” AER Dec. pp. 791-809

Daniels Peter (1999) Economic gains from technology intensive trade : an empirical assessment. Cambridge Jounal of Economics. Vol.23 no 4. P. 427-444.

Grossman, G. M. and E. Helpman (1995) “Technology and Trade” in G. M. Grossman and K. Rogoff eds.handbook of International Economics vol.III Amsterdam : North-Holland pp.1279-1337

Leamer Edward (1995) the Heckscher-Ohlin model in theory and practice. Princeton studies in international finance no.77 1995

Leamer Edward (1993) “Factor  supply differences as a source of comparative advantage” AER May pp. 436-439

Leamer Edward (1980) “The Leontief Paradox Reconsidered” Journal of Political Economy pp.495-503

Posner, M. V.(1961) “ International Trade and Technical Change” Oxford Economic Papers pp. 323-341

Vernon , R. (1966) “International Investment and International Trade in the Product Cycle” Quarterly Journal of Economics pp. 197-207

Wood, A. ( 1995) “How Trade Hurts Unskilled Workers” Journal of Economic Perspectives, summer pp. 57-80

3. Economies of Scale and Imperfect  Competition

Greenaway, D. and  C. R. Milner (1986) The Economics of Intra-Industry Trade. Oxford : Basil Blackwell

Greenaway, d. and C. R. Milner (1983) “On the measurement of intra- industry trade” Economic Journal vol. 94 pp. 900-908

Helpman.  E (1999) The structure of foreign trade. Journal of Economic Perspectives vol 13. No. 2 p121- 144

Helpman, E. (1984) “Increasing returns, imperfect markets and trade theory”in R. W. Jones and P. B. Kenen eds. Handbook of International Economics vol.I Amsterdam : North- Holland pp. 325-360

Helpman E. and P. R. Krugman (1985) Market Structure and Foreign Trade. Cambridge , Mass:MIT Press.

Krugman, P. (1980) “Scale Economies, Product Differentiation and the Pattern of Trade” AER pp. 950-959

Lancaster K. “Intra industry trade under perfect monopolistic competition.” Journal of International Economics vol 10. P. 151-175.

4.Tariffs and Non- Tariff Barriers

Alam Asad (1995) “The new trade theory and its relevance to the trade policies of developing countries” The world Economy vol. 18. No.3 pp. 367-386.

Brander, J. A. (1995) “Strategic trade policy “ in G.M. Grossman and K. Rogoff eds. Handbook of International Economics vol III Amsterdam:Elsevier pp. 1395-1455

Brander J. and B. Spencer (1985) “ Export subsidies and international market share rivalry” Journal of International Economics vol. 16 pp. 83-100

Corden W. M. (1997) Trade Policy and Economic Welfare. 2nd edition New York : Oxford University Press.

Corden, W. M. (1971) The Theory of Protection. London: Oxford University Press

Feenstra, Robert.  How costly is protectionism? Journal of Economic Perspectives, vol 6. No. 2

Grossman , G. M. and  E. Helpman ( 1994) “Protection for sale” AER September pp. 833-850

Helpman, E. and P. Krugman (1989) Trade Policy and Market Structure Cambridge , Mass: MIT Press.

Hufbauer, G. and K. A. Elliott (1994) Measuring the Cost of Protection in the United States . Washington D.C: Institute for International Economics

O’Campo New theories of international trade and trade policy in developing countries.

5.Economic Integration

Cooper, C. A. and B. F. Massell (1965) “A new look at customs union theory” Economic Journal   Dec. pp. 742-747

De Melo, J. and A. Panagaryia ( 1993) New dimensions in Regional Integration  New York : Cambridge University Press.

Lipsey, R. G. (1961) “the theory of customs unions: a general survey” Economic Journal  sept. pp. 498-513.

Vamvakidis, A. (1999) “Regional trade agreements or broad liberalization: which path leads to faster growth” IMF Staff Papers vol.46 no.1 pp.42-68

Vamvakidis .  A. ( 1998) Regional integration and economic growth

World Bank Economic Review vol 12 no. 2 p 251-270

Wonnacott P. and R. Wonnacott   “Is unilateral tariff reduction preferable to a customs union?. The case of the missing foreign tariffs.” AER vol 71. No.4 p. 704-714.

6. Trade and  Development

Dornbusch, R. (1992) “The case for liberalisation in developing countries” Journal of Economic Perspectives pp. 69-85

Edwards Sebastian (1993) Openness, trade  liberalisation and growth in developing countries. Journal of Economic Literature vol. 31 p. 1358- 1393

Frankel, J. A. and D. Romer (1996) “Trade and Growth: an empirical investigation.” NBER working paper 5476

Grossman, G. M. and E. Helpman (1994) “Endogenous innovation and the theory of growth” Journal of Economic Perspectives, winter pp.23-44

Panagariya,A. (2004) Miracle and Debacles: In defense of trade openness. The World Economy vol.27 no.4 pp.1149-1171

Reidel, J. (1984) “Trade as an engine of growth in developing countries revisited” Economic Journal march pp. 56-73

Rodrik, D. (1995) “ Trade strategy, investment and exports: another look at East Asia ” NBER working paper 5339

Salvatore D and T. Hatcher  (1991) Inward and outward oriented development strategies. Journal of Development Studies vol. 27 no. 3  p. 7-25.

Assessment

Mid- semester examination- 35%

Class presentation- 5%

Final examination- 60%