Those required by the degree program. An introductory background in international trade is recommended.
The aim of the course is to help understand the main features of the current wave of globalization. The course develops the main models of international trade and shows how to use them to interpret real world events.
The course covers the following topics:
• Globalization: definitions and stylized facts;
• Main sources of global trade and gains from trade;
• Globalization and income inequality;
• Firm heterogeneity and international trade: Why are exporting firms so different from non-exporting firms (in terms of productivity, skill composition of employment, ..)? Does firms' heterogeneity in the internationalization strategies differently affect the growth of industries and countries?;
• Theories of the multinational firm: The determinants of the choice to become multinational. The strategies of foreign expansion adopted by firms. The effects of the presence of multinational corporations on home and host countries;
• Offshoring and fragmentation of production;
• Trade policy, preferential trade agreements, and WTO;
• Current Account and Global Imbalances.
• Krugman P. - Obstfeld M. – Melitz M.J. (2018) International Economics. Theory and policy, Eleventh edition, Pearson (chapters 3,5,6,8,9 e 10);
• UNCTAD/DITC (2018), Key Statistics and Trends in International Trade: The Status of World Trade, United Nations, Geneva.
• UNCTAD/DITC (2018), Key Statistics and Trends in Trade Policy: Trade Imbalances, United Nations, Geneva;
• Crozet M. and Orefice, G. (2017) “Trade and Labor Market: what do we know?”, CEPII Policy Brief n.15;
• Mayer T. and G. Ottaviano (2007) “The Happy Few: the internationalization of European firms”, Bruegel Blueprint;
• Baldwin R. (2009) “The Great Trade Collapse: causes consequences and prospects”, CEPR;
• Antràs, P. and S. R. Yeaple (2014), "Multinational Firms and the Structure of International Trade". In: Handbook of International Economics. Vol. 4, ch. 2 (pp. 55 - 66);
• Javorcik B.S., Özden Ç., Spatareanu M. and C. Neagu (2011) "Migrant Network and Foreign Direct Investment", Journal of Development Economics, vol.94, pp. 231-241;
• Ottaviano, G., Peri, G. and G.C. Wright (2010), "Immigration, Offshoring and American Jobs", American Economic Review, August 2013, Vol. 103 No.5;
• Peri, G. and C. Sparber (2009) "Task Specialization, Immigration and Wages", American Economic Journal: Empirical Economics, June 2009;
• Obstfeld, M. and K. Rogoff, (2009) "Global imbalances and the financial crisis: products of common causes," Proceedings, Federal Reserve Bank of San Francisco, issue Oct, pages 131-172.
Lectures and in class discussion of real world events.
Specific lectures (about 8 hours of the course) will be devoted to empirical work on indicators and data on trade and multinational firms.
Written exam with 3 open questions (10 points each). Students have 90 minutes to complete the exam.
The exam aims to test the understanding of the economic models and the ability to link the models to events of the world economy.
The course exists in e-learning mode. The registration is strongly advised to all the students.