Gravity type models are widely used in international economics. Tastes, percapita income, and technology theories of trade mmkm ch. Robert feenstra and alan taylor 2008, international economics, 1st edition, pearsonaddisonwesley. Norman, victor 1980, theory of international trade.
Theory and evidence, wiley publishers, forthcoming early 2011. International trade theory and policy is a masterful exposition of the core ideas of international trade. Creative placemaking ann markusen, markusen economic research services and anne gadwa, metris arts consulting. Theory and evidence is the perfect book for international trade courses at the undergraduate level. Intended for international trade courses at the undergraduate level. Ethier, decreasing costs in international trade and frank grahams argument for protection, e conometrica 50, 1982, pp 124368. International trade theory and evidence by markusen melvin kaempfer and maskus free ebook download as pdf file. Markusen university of colorado, boulder university college dublin eth zurich may 2528 each lecture will be approximately two hours. In these models the inclusion of timefi0xed regressors like geographical or cultural distance, language and institutional dummy variables is often of vital importance e. These theories include the classical theory of trade, the factorproportions theory of trade, increasing returns and imperfect competition as determinants of trade, and the links between trade and measures of productivity. It is appropriate either as part of a twoterm international sequence trade and finance or in advanced courses in trade that follow a oneterm international economics course.
Markusen mit press 2002 isbn 02624160 table of contents acknowledgments preface 1. International trade, european regionalism and trade as. Yi 1999 argues that the new trade theory models cannot account for the increase in trade unless they incorporate changes in both trade policy and international vertical integration. Markusen, an introduction to international trade theory, 2006,january 920,university of colorado, boulder. Imperfect competition, economies of scale, and international trade 1. Exportplatform foreign direct investment journal of the. The book updates the classic monograph of professor gandolfo and is now the single most.
Multinational firms and the theory of international trade despite the great importance of multinational firms in international economics, theoretical and empirical research on these firms has generally been conducted separately from that on international trade. The second part of the course focuses on trade policy. The relative importance of the current account channel depends inversely on the degree of domestic labor market 1the point on potential substitution between international trade and capital mobility is pioneered by mundell 1957, and discussed by jones and neary 1984, markusen 1983, markusen. The hedonic approach of lancaster 1966 assumes perfect substitutability between quality and quantity of a good, so only the product of quantity and quality enters utility. Markusen, melvin, kaempfer and maskus, international trade. According to the eclectic theory of fdi dunning,1988,1992, multinational corporations mncs arise from exploiting the advantages of internalizing rmspeci c assets such as. Articles will typically be available online at jstor, sciencedirect, or nber. Despite the great importance of multinational firms in international economics, theoretical and empirical research on these firms has generally been conducted separately from that on international trade. I wanted to maintain the generalequilibrium focus which is the great strength of trade theory. Markusen, james 1995 the boundaries of multinational enterprises and the theory of international trade.
Leamer ucla and national bureau of economic research and james levinsohn university of michigan and national bureau of economic research contents 1. Graduate international trade course econ 84 fall 2017. Description thanks to many technological developments over the past half century, today we have instant access to a vast array of information sources and are able to share new knowledge with the rest of the world in seconds. This is a textbook out of print and reverted to authors that design for a onesemester course in international trade theory at the advanced undergraduate or beginning graduate level. Trade is a cornerstone concept in economics worldwide. Matthews, reciprocal demand and increasing returns, r eview of e conomic s tudies. Trade and trade policy in agricultural commodities i. One useful feature of markusen s setting is that it clearly highlights the role of relative international prices the terms of trade as a mechanism to signal foreign agents. At this point, however, it is not clear whether trade and investment are regarded by firms as complementary ways of accessing other markets, or, instead, if they are employed as alternative strategies. The feenstra textbook is available for purchase at the campus bookstore. A particular focus of this literature is on the volume of trade in aggregate and among sets of countries, and its relationship to a world of identical and homothetic preferences as generally assumed in traditional trade theory. James markusen, melvin, kaempfer and maskus, international trade. Hans singer 1998 fall 2010 huw lloydellis econ239 fall 2010 1 34. Multinational firms, offshoring, outsourcing, and environment james r.
Multinational firms and the theory of trade markusen mp. Economies of scale, imperfect competition, and international trade. Increasing returns, imperfect markets, and trade theory in r. Topics in clude trade and growth, trade and wages, but also labor migration as well as fdi, offshoring and outsourcing. Theory and evidence, second edition international trade. A comprehensive, balanced text, international trade. The literature emphasizes the importance of the fdi driven performance spillovers that, combined with the findings of the newnew trade theory will affect both the selection process of firms to the export markets and their performance while exporting. Feenstra, advanced international trade, princeton university press, 2003.
A structural quantitative analysis mario larch and yoto v. They found that multinational companies encourage the potential of. The present section is concerned with what has been popularly described as the new trade theory. Gams chapter 1 2012 jensen gams chapter 2 20 markusen gams chapter 3 2012 markusen. Markusen university of colorado, boulder nber cepr the mit press, 2002 isbn 02624160 ii for ann, daniel and peter iii multinational firms and the theory of international trade james r.
This is a secondyear graduate class for econ phd students, the sequel. Theory and evidence from china hanwei huang, jiandong ju, vivian z. The course also explores empirical issues in international trade. A simple theory of international trade with multinational corporations,journalofpoliticaleconomy,923,p. This book is suitable either as part of a twoterm international sequence or in advanced courses in trade that follow a oneterm international economics course. Producing higher quality involves returns to scale, it is intensive in skilled labor and. Markusen,melvin,kaempfer,maskus international trade theory and evidence mcgraw hill. We explore why countries trade, what they trade, and who gains and who loses from trade. An extensive literature in price theory in general and trade theory in particular looks at the quality of goods. A much revised version is due to be published in 2011. Econ 631 advanced international trade university of waterloo. Theory and evidence johns hopkins nursing evidence based practice model and guidelines second edition dearholt, john hopkins nursing evidence based.
International trade and foreign direct investment fdi have grown at fast paces during the last decades. Yotov we are very grateful for the excellent feedback, comments and suggestions that we received from the. International trade yiqing xie 1 international trade fudan university school of economics summer 2017 administrative details. History of international trade abhi linkedin slideshare. This is a textbook out of print and reverted to authors that design for a onesemester course in international trade theory at the advanced undergraduate. Multinational firms and the theory of international trade, cambridge, ma,mitpress 9. Drawing on twenty years of research, he focuses on the interaction of scale economies, trade. International trade semester 2, 2019 course information welcome to econ 302. Markusen jr melvin jr kaempfer wh and maskus ke 1995. A poorly understood empirical phenomenon is exportplatform affiliate production ep, particularly for sale in third countries rather than in the parent or host countries. International trade yiqing xie 1 international trade fudan university school of economics fall 2015 thursday 10. Elhanan helpman, understanding global trade, harvard university press 2011 an entirely nontechnical yet rigorous discussion of the evolution of economic thinking about international trade 4. Department of economics, centre for energy policy and economics and international trade analysis downloads 64 362,197 view pdf. Two major trade theories explain the connection between trade and productivity.
Haveman and hummels 1999 argue that the new trade theory models rely on taste for variety that is not consistent with the data and predict too much trade. Our traditional theory of international trade left me ill equipped to participate in the debate and so i began in the late 1970s to work on incorporating industrialorganization aspects of industries into trade models. On the economic impact of fdi and trade liberalization in. Markusen university college dublin university of colorado, boulder this course will focus on the theory of international trade, with some reference to empirical evidence. Optimal environmental border adjustments under the general. On the economic impact of fdi and trade liberalization in the. Multinational firms and the theory of international trade.
This paper examines this issue empirically, for the particular case of. Fdi as an outcome of the market for corporate control. A less wellknown theory, developed in the 21st century, features the interaction between heterogeneous firms and international trade. This is an advanced undergraduate, masters level book that provides a comprehensive guide to the subject of trade theory. Theory and policy, 8th edition, pearsonaddisonwesley.
Trade models of this variety are similar to older theories of tariffjumping fdi. The ricardian model features the concept of comparative advantage. There have been some attempts to integrate models of horizontal and vertical fdi into a single framework. Theory and evidence by james markusen, james melvin, william kaempfer, and keith maskus, mcgraw hill, boston, 1995. Markusen and venables, w5529 the theory of endowment, intra industry. Pages are intact and are not marred by notes or highlighting, but may contain a neat previous owner name. Markusen,melvin,kaempfer,maskus international trade theory. Scott taylor department of economics the university of calgarydepartment of economics, the university of calgary, alberta, canada and the national bureau of economic research, cambridge ma.
As an example, take a helpmankrugman type of model with product di. In this book, james markusen provides a comprehensive integration of the two fields. Feenstra, robert 1998 integration of trade and disintegration of production in the global economy. New trade theory introduced increasing returns and imperfect competition in international trade. The first part of the course focuses on trad e theory. This resolved the indeterminacy of the size of the. Venablesa, b auniversity of colorado,nber and cepr boulder co, 80309,usa blondon school of economics and cepr,london wc 2a ae uk received 12 september 1996. We choose to adopt markusen s transparent model as the ideal setting in which we disentangle the strategictrade and environmental incentives to distort trade. Network theory and empirical analysis john schoenemany boliang zhuz bruce a. Generalequilibrium approaches to the multinational firm. Empirical studies of comparative advantage models, 216228. Tybout 2003 surveys the recent microlevel evidence on trade that. Yotov we are very grateful for the excellent feedback, comments and suggestions that we received from the participants in the expert group meeting on channeling trade and investment into sustainable.
Multilateralism is founded on both the classical international trade theory and the free trade theory which promote comparative advantage and specialization among participating nations as explained in markusen et al. According to the eclectic theory of fdi dunning,1988,1992, multinational corporations. Feenstra university of california, davis, and national bureau of economic research august 2002 contents. It systematically examines alternative causes of trade and the consequence of each. Empirical studies of the ricardian and ricardoviner models 43 2. On the economic impact of fdi and trade liberalization in the asiapacific region.
Melvin, the gainsfromtrade theorem with increasing returns to scale, ch 2 in kier. The second part covers trade policies, including the role of trade agreements. James markusen, james melvin, keith maskus and william kaempfer mpra paper from university library of munich, germany. We develop a threeregion model, with two identical large, highcost countries collectively called north and a small, lowcost country south. The course also discusses the effects of different trade policies and assesses the role of international institutions in shaping international trade relations. Economics 425 international trade theory and policy. An introduction to international trade theory phd course, university college dublin, january may, 2010 james r. Lecture notes in international trade policy cevat gerni beykent universityistanbul 2010. Markusen, james r melvin, james r kaempfer, william and maskus, keith. In this course we will start with the development of the basis of trade. Paul krugman and maurice obstfeld 2008, international economics. By james markusen, james melvin, keith maskus and william kaempfer. A copy that has been read, but remains in excellent condition.
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