University of Denver                                         George DeMartino

Josef Korbel School of Int'l Studies                   Office: Sié Chéou-Kang Center 165
Fall 2010                                                          Phone: 303-871-3089

Off. Hrs.:  Weds. 1:30—3:30 pm

                                                                                          Thurs. 2:30—3:30 (and by appt.)

                                                                        Email: George.DeMartino@du.edu

 

INTS 4310

 

INTERNATIONAL TRADE

 

Course Description

 

The subject of this course is the theory, policy, political economy and history of the international organization of trade.  Mainstream international trade is based mainly on microeconomic tools of analysis.  For this reason, a familiarity with Microeconomic Theory is a prerequisite for this course.  At the least, all students must have successfully completed at the undergraduate level a course in Introductory Microeconomics or International Economics.

 

The field of international trade ranges from abstract theoretical modeling to policy controversies. In this course we will examine both—we will take care to explore neoclassical and heterodox trade theory, while also paying attention to important empirical, political economy and policy- issues. 

 

Following the examination of trade theory we will explore four contemporary debates in international trade.  I have provided readings for eight topics here, for your future reference. The four issues are: 1. the debate over free vs. fair trade; 2. trade and gender; 3. trade, growth, poverty and inequality; and one of the following:  trade and the environment; wages and outsourcing; China and global trade; the political economy of the WTO; and terms of trade and unequal exchange vis-à-vis developing countries.

 

Course Materials

 

The following book will be used extensively in the course and is available at the bookstore: 

 

Paul Krugman and Maurice Obstfeld, International Economics, Addison Wesley, 6th edition, 2003, 7th edition, 2005, 8th edition, 2009.  (Note: you may also use older editions of the text.  We will not be using the ‘access kit” that is sold with newer editions of the text. Chapter numbers below refer to the 2009 edition; if you’re using an older edition, be sure that you are reading the correct chapters.)

 

You can find the other required readings for the course in a few different venues. Most readings are in Blackboard (these are in the “Course Documents” folder and are marked on the syllabus with BB). You can also find many of the readings on your own by using Jstor, Goldrush, Google, or Google Scholar.  Note that optional readings are not available through Blackboard.

 

Data Sources on International Trade

 

World Bank's World Development Indicators (import and export duties, trade volumes, other cross-national data). 

http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:21725423~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html

NBER Data Sets, including detailed trade statistics

- http://www.nber.org/data/

The Center for International Data at UC Davis.

- http://cid.econ.ucdavis.edu/

World Bank Trade Data, including the international trade and production database.

- http://go.worldbank.org/K2LPHKB0M0

United Nations COMTRADE data base

            - http://comtrade.un.org/

UNCTAD Trade Analysis and Information System (TRAINS):

- http://www.unctad.org/trains/index.htm

US Census Bureau Foreign Trade Statistics:

- http://www.census.gov/foreign-trade/www/

Detailed US and Canada imports by source (6-digit HS) from Industry Canada:

- http://strategis.ic.gc.ca/sc_mrkti/tdst/engdoc/tr_homep.html

Jon Haveman’s International Trade Data:

http://www.macalester.edu/research/economics/page/haveman/trade.resources/tradedata.html

Office of the United States Trade Representative National Trade Estimate Report on Foreign

Trade Barriers:

- http://www.ustr.gov/Document_Library/Reports_Publications/Section_Index.html

Inter-American Development Bank's Trade and Integration Databases:

- http://www.iadb.org/research/index.cfm?language=english

U.S. Department of State Country Commercial Guides:

            Link: www.state.gov/r/pa/ei/bgn/

World Trade Organization’s Trade Policy Reviews. These are up-to-date reviews of commercial policies in member countries.

- http://www.wto.org/english/tratop_E/tpr_e/tpr_e.htm

Tuck Trade Agreements Data Base. Comprehensive, searchable collection of the text of RTAs.

- http://www.dartmouth.edu/~tradedb/index.php

Trade polls. Conveniently collected results from recent polls covering globalization-related questions.

- http://www.pollingreport.com/trade.htm

WorldTradeLaw.net. An online source for world trade law, including WTO dispute settlement.

- http://www.worldtradelaw.net/

 


Grading

 

Course grades will be determined as follows:  two take-home exams (85% of grade) and participation in class discussions (15% of grade). The exams will be distributed in class (see course outline below for dates).  Extensions will not be given.  You may use your own notes in preparing this exam, but you may not talk with any of your colleagues (or others) about the exam. Assessment of class participation will depend on your demonstrated preparation for class each week, and on the quality (and not primarily the quantity) of your contributions to class discussion.

 

Preparation for class each week

 

Please read the required materials in the order presented on the syllabus.  I will expect that you have completed all assigned readings prior to the class meeting. Many of the materials are demanding; be sure to allocate sufficient time to read them carefully and, if necessary, repeatedly.

 

COURSE OUTLINE

 

Introduction to the global trade system:  An overview of the key issues, debates, and problems 

(Tues, Sept. 14)

 

There are no required readings for the first meeting of the course.  In order to set the context for our study this term, I will present an overview of the key challenges confronting the global trade system. The Coughlin piece listed below presents a wonderful summary of many of the themes that will appear in this course.

 

Optional:

Coughlin, Cletus. 2002. “The Controversy Over Free Trade: The Gap Between Economists and the General Public.” The Federal Reserve Bank of St. Louis Review 84(1): 1-21. Available at www.research.stlouisfed.org/publications/review/02/01/1-22Coughlin.pdf.

Krugman, Paul. 2008. “The Great Illusion.” The New York Times Op-ed page, August 16.

Krugman, Paul. 1993. “What Do Undergrads Need to Know About Trade?” The American Economic Review, Papers and Proceedings 83(2): 23-26. (Don’t worry: this is also relevant to graduate students, though the reading is nevertheless optional.)

Leamer, Edward. 2007. “A Flat World, a Level Playing Field, a Small World After All, or None of the Above? A Review of Thomas L. Friedman's The World is Flat,” Journal of Economic Literature 45(1):  83-126. 

 

I.  The evolution of the international trade system: An Historical overview

(Sept. 21)

 

A. The Pre-GATT World

Required

Bairoch, P. and Kozul-Wright, R., “Globalization Myths: Some Historical Reflections on

         Integration, Industrialisation, and Growth in the World Economy,” UNCTAD Discussion

            Paper Number 113, 1996. (Note: do not get distracted by the discussion of international

            financial flows, except when the discussion turns to FDI.)

Chang, Ha-Joon, “Once Industrialised, Preach Free Trade,” South Bulletin, July 30 2002,

http://www.southcentre.org/index.php?option=com_content&task=view&id=559&Itemid=126.

(Note: focus on the historical discussion rather than on the prescriptions that are discussed toward the end of the article. This article draws from Chang’s book, Kicking away the ladder—see optional readings below for full citation.)

Arthur Stein, “The Hegemon’s Dilemma:  Great Britain, the United States, and the International

            Economic Order,” International Organization 38 (Spring 1984):  355-386.

 

Optional:

Baldwin, R., P. Martin. 1999. "Two Waves of Globalization: Superficial Similarities,             Fundamental Differences." NBER Working Paper No. 6904. (Note: do not get distracted

            by the discussion of international financial flows, except when the discussion turns to

            FDI.)

Wallerstein, Immanuel. 1980. Mercantilism and the Consolidation of the European World Economy, 1600-1750. New York: Academic Press.

Chang, Ha-Joon, Kicking Away the Ladder: Development Strategy in Historical Perspective,

         London: Anthem Press, 2002.  Introduction.

Antoni Estevadeordal, Brian Frantz, Alan M. Taylor, “The Rise and Fall of World Trade, 1870-

            1939,” NBER Working Paper, 2003.

Michael D. Bordo, Barry Eichengreen, Douglas A. Irwin, “Is Globalization Today Really

            Different than Globalization a Hunderd Years Ago?”, NBER Working Paper, 1999.

Kevin H. O'Rourke, Jeffrey G. Williamson, “From Malthus to Ohlin: Trade, Growth and

            Distribution Since 1500”, NBER Working Paper, 2002

Alan M. Taylor, “Globalization, Trade, and Development: Some Lessons From History”, NBER

            Working Paper, 2002.

David Lazer, “The Free Trade Epidemic of the 1860s and Other Outbreaks of Economic

            Discrimination,” World Politics 51 (July 1999):  447-483. 

Williamson, Jeffrey, “Winners and Losers Over Two Centuries of Globalization,” WIDER

         Annual Lecture 6, World Institute for Development Economics Research, 2002. (This

         paper is also relevant to the discussion of unequal exchange theory in part III of the

         course.)

Irwin, D.A. 1996. "The United States in a New Global Economy? A Century's Perspective."

            American Economic Review 86(May): 41-46.

Barry Eichengreen, “The Political Economy of the Smoot-Hawley Tariff,” NBER Working

            Paper No. 2001, August 1986.  (Note: do not get distracted by the model in section V.)

 

B. The Post-GATT World: The WTO and the Rise of Bi- and Multilateral Trade Regimes

 

Required:

John Barton, Judith Goldstein, Timothy Josling, and Richard Steinberg, The evolution of the

         trade regime: Politics, law and economics of the GATT and the WTO, Princeton and

         Oxford: Princeton University Press, 2006. Read chapters 1-2 (though focus on the “big

         picture” rather than the minute details). 

Shadlen, Kenneth. 2005.  Exchanging development for market access: Deep integration and

            industrial policy under multilateral and regional-bilateral trade agreements. Review of

            International Political Economy, 12(5), pp. 750-775. 

 

Optional:

Arvind Panagariya, “The Regionalism Debate: An Overview,” World Economy, June

            1999, 477-511. (Note: do not get distracted by the technical discussion in part 2 of the

            article. This is also a reading where you should focus on the “big picture.”)

Susan Ariel Aaronson, Trade and the American Dream: A Social History of Postwar Trade

         Policy (Lexington: University of Kentucky Press, 1996).

Andrew G. Brown, Reluctant Partners: a History of Multilateral Trade Cooperation, 1850-1900

         (Ann Arbor: University of Michigan Press, 2003).

Orin Kirschner, ed., The Bretton Woods-GATT System: Retrospect and Prospect after Fifty Years

         (Armonk, NY: M.E. Sharpe, 1996).

Jacob Viner, “Conflicts of Principle in Drafting a Trade Charter,” Foreign Affairs 25, no. 4 (July

         1947).

Thomas W. Zeiler, Free Trade, Free World : The Advent of GATT (Chapel Hill : U. of North

         Carolina Pr., 1999).

Wade, Robert.  2003. What strategies are viable for developing countries today? The WTO

            today and the shrinking of the ‘development space.’ Review of International Political

            Economy. 10(4), pp. 621-44.

 

II. Core Trade Theories and Empirical Tests thereof (4 sessions)

 

A.  Ricardian/Classical Model of Trade

(Sept. 28)

 

Required:

 

Ricardo, David. 1821. Chapter 7 “On Foreign Trade” in On the Principles of Political Economy

            and Taxation. London: John Murray, Third Edition.

- http://www.econlib.org/library/Ricardo/ricP2a.html.

Krugman and Obstfeld, International Economics, chapters 2-3. (Note: you can skip the

            discussion of the gravity model in chapter 2-we will discuss that in a few weeks.)

Krugman, Paul. “Ricardo’s Difficult Idea,” 1996, unpublished paper.

Prasch, Robert. 1996. “Reassessing the Theory of Comparative Advantage,” Review of Political Economy 8(1): 37-55.

 

Optional:

Deardorff, Alan. 1979. “Weak Links in the Chain of Comparative Advantage.” Journal of International Economics 9(2): 197-209.

Cohen, Stephen, Joel Paul and Robert Blecker. 1996. Fundamentals of U.S. Foreign Trade Policy. Boulder: Westview Press. Chapter 3, “Economic Theories of International Trade”

Maneschi, Andrea. 1992. “Ricardo’s International Trade Theory: Beyond the Comparative Cost Example.” Cambridge Journal of Economics 16: 421-437.

Milberg, W. 2002. “Keynes’ Rejection of Comparative Advantage: Say’s Law in the Open Economy,” in S. Dow and J. Hillard, Keynes, Uncertainty and the Global Economy, Aldershot: Edward Elgar. 

 

B.  Heckscher-Ohlin, Specific Factors & Empirical Tests

(Oct. 5)

 

Required:

Krugman and Obstfeld, International Economics, chapter 4 (skip appendix).

Subasat, Turan. 2003. “What Does the Heckscher-Ohlin Model Contribute to International Trade Theory? A Critical Assessment.” Review of Radical Political Economics 35(2): 148-165.

Wood, Adrian. June 2008. “Heckscher-Ohlin in theory and reality.” QEH Working Paper No.

157. Available at: http://www3.qeh.ox.ac.uk/pdf/qehwp/qehwps157r1.pdf

 

Optional:

Bhagwati, Jagdish. 1964. “The Pure Theory of International Trade.” Economic Journal 74(293): 1-84.

Bowen, Harry, Edward Leamer and Leo Sveikauskas. 1987. “Multicountry, Multifactor Tests of the Factor Abundance Theory.” The American Economic Review 77(5): 791-809.

Jones, R.W. 1956-57. “Factor Proportions and Heckscher-Ohlin Theorem.” The Review of Economic Studies 24(1): 1-10.

Neary, Peter. 1978. “Short-run Capital Specificity and the Pure Theory of International Trade.” Economic Journal 88(351): 488-510.

Samuelson, Paul. 1948. “International Trade and the Equalization of Factor Prices.” Economic Journal 58(230): 163-184.

Trefler, Daniel. 1995. “The Case of Missing Trade and Other Mysteries.” The American Economic Review 85(5): 1029-1046.

Trefler, Daniel. 1993. “International Factor Price Differences: Leontief Was Right!” Journal of Political Economy 101(6): 961-987.

 

C. New Trade Theories #1:  Strategic Trade Theory: Does it Matter What You Export?

(Oct. 12)

 

Required:

Krugman and Obstfeld, International Economics, pp. 267-73.

Krugman, Paul. 1987.  “Is Free Trade Passé?” Journal of Economic Perspectives, Vol. 1, pp. 131-144.

Cowling, Keith and Roger Sugden. 1998. “Strategic Trade Policy Reconsidered: National Rivalry vs. Free Trade vs. International Cooperation.” Kyklos 51(3): 339-57.

Shafaeddin, Mehdi. 1998. “How Did Developed Countries Industrialize? The History of Trade and Industrial Policy: The Cases of Great Britain and the USA.” UNCTAD Discussion Paper 139.

Optional:

Anna Maria Mayda and Dani Rodrik, “Why are Some People (and Countries) More

         Protectionist than Others?” European Economic Review 49, no. 6 (2005), pp. 1393-1430.

Chang, Ha-Joon. 2002. Kicking Away the Ladder: Development Strategy in Historical Perspective. London: Anthem Press. Read chapter 2.

Paul R. Krugman, ed., Strategic Trade Policy and the New International Economics (Cambridge,

         MA, MIT, 1986).

Baldwin, Robert E. 1989. “The Political Economy of Trade Policy.” Journal of Economic Perspectives 3(4): 119-135.

Feenstra, Robert. 1992. “How Costly is Protectionism?” Journal of Economic Perspectives 6(3): 159-178.

Harrison, Ann and Ana Revenga. 1995. “The Effects of Trade Policy Reform: What Do We Really Know?” NBER Working Paper No. 5225.

Irwin, Douglas, “Mercantilism as Strategic Trade Policy: The Anglo-Dutch Rivalry for the East

      India Trade,” Journal of Political Economy, 99(6), 1296-1314, 1991.

Redding, Stephen. 1999. “Dynamic Comparative Advantage and the Welfare Effects of Trade.” Oxford Economic Papers 51: 15-39.

Rodrik, Dani. 1995. “Taking Trade Policy Seriously: Export Subsidization as a Case Study in Policy Effectiveness,” in New Directions in Trade Policy. Jim Levinsohn, Alan Deardoff and Robert Stern (eds.) Ann Arbor: University of Michigan Press.

Hausmann, Ricardo, Jason Hwang, and Dani Rodrik. 2007. “What You Export Matters.”

         Journal of Economic Growth, 12(1): 1-25.

Karl C. Kaltenthaler, Ronald D. Gelleny and Stephen J. Ceccoli, “Explaining Citizen Support for

         Trade Liberalization,” International Studies Quarterly 48, no. 4 (December 2004): 829-51.

Schott, Peter K. 2004. “Across-Product versus Within-Product Specialization in International Trade.” Quarterly Journal of Economics 119(2):647-678.

Shaikh, Anwar. 2003. “Globalization and the Myth of Free Trade.” Paper for the Conference on Globalization and the Myths of Free Trade, New School University.

 

D.  New Trade Theories, #2: Increasing Returns, Geography, Intra-industry Trade, Monopolistic Competition, Technology Gaps & the Gravity Model

(Oct. 19)

 

Required:

Krugman & Obstfeld, International Economics, ch. 6 (skip appendix) and sub-section of chapter

            2 on the gravity model, pp. 15-18.

 

NB: the "monopolistic competition model" presented in Krugman and Obstfeld is not worth the effort. So I won't take you through this section, and won't expect you to have mastered it. If, however, you have an unquenchable thirst for neoclassical modeling, or if you just don't have a life, feel free to read it carefully and come see me to discuss any parts that are confusing to you.
FOR THE REST OF YOU: Here's what I'd like you to do:

1. Read pp. 114-120 top. This will take you through the basic ideas that we discussed last week.  Have your lecture notes from last week on hand as you go through this. Stop reading when you get to the heading "Monopolistic Competition."

2. Resume reading on p. 129, at the heading "Economies of Scale and Comparative Advantage." Pay close attention to the lessons (the four enumerated points) on p 131, where Krugman summarizes the findings of the preceding pages. Read the rest of the chapter (129-149). Pay particular attention to the intuition behind "dumping," "external economies" (QUICK: what is the difference between internal economies and external economies? Is the clustering of firms in one industry--say, software development in Silicon Valley, an example of the former or the latter?); external economies and trade, and interregional trade and geography. All of this is intuitively accessible, thankfully, but also important in understanding how economists make sense of contemporary trade patterns.

Palley, Tom. 2006. “Rethinking Trade and Trade Policy: Gomory, Baumol, and Samuelson on

Comparative Advantage.” Levy Economics Institute Public Policy Brief No. 86.

Nilufer Cagatay. 1994. “Themes in Marxian and Post-Keynesian theories of International Trade: A Consideration with Respect to New Trade Theory,” in Mark Glick (ed.) Competition, Technology and Money. London: Edward Elgar.

 

Optional:

Deraniyagala, S., and Fine B.  2001. “New Trade Theory Versus Old Trade policy; A Continuing

            Enigma.” Cambridge Journal of Economics 25: 809-825.

Elmslie, Bruce and Antoine James. 1993. “The Renaissance of Adam Smith in Modern Theories of International Trade,” in R.F. Hebert (ed.) Perspectives in the History of Economic Thought, Vol. IX.

Helpman, Elhanan and Paul Krugman. 1985. Market Structure and Foreign Trade. Cambridge: MIT Press.

Gomory, R. and W. Baumol. 2000. Global Trade and Conflicting National Interests. Cambridge: MIT Press.

Grossman, Gene (ed.) 1992. Imperfect Competition and International Trade. Cambridge: MIT.

Krugman, Paul. 1979. “Increasing Returns, Monopolistic Competition, and International Trade.” Journal of International Economics 9(4): 469-479.

Krugman, Paul. 1991. “Increasing Returns and Economic Geography.” Journal of Political Economy 99(3): 483-499.

Neary, J. Peter. "Of Hype and Hyperbolas: Introducing the New Economic Geography." Journal

         of  Economic Literature 39: 536-561, 2001.

Blecker, Robert. 1997. “The ‘Unnatural and Retrograde Order:’ Adam Smith’s Theories of Trade and Development Reconsidered.” Economica 64(255): 527-37.

Milberg, William. 1994. “Is Absolute Advantage Passé? Towards a Post-Keynesian/Marxian Theory of International Trade,” in Mark Glick (ed.) Competition, Technology and Money. London: Edward Elgar.

 

EXAM 1: Distributed on Tuesday, October 19. Exam (hard copy) is due in my office on Monday, October 25th, at 1:00 pm. No Exceptions.

 

III. CONTEMPORARY DEBATES IN TRADE THEORY AND POLICY

 

EXAM 2: Distributed on Tuesday, November 9. Exam (hard copy or email) is due on Monday November 22nd, at Noon. No Exceptions.

 

The Debate over Free Trade versus Fair Trade

(October 26)

 

Required:

Bhagwati, Jagdish. 1995. “Trade Liberalisation and ‘Fair Trade’ Demands: Addressing the

            Environmental and Labour Standards Issues.” The World Economy, vol. 18: 745-59.

Krugman, Paul. See Blackboard for list of articles and links. Incorporate here…

 

DeMartino, George.  2000.  Global Economy, Global Justice, London: Routledge. Chapter 6. 

Dorman, Peter.  2006 (April). “Worker rights and economic development.” Presented at the

            conference on “Economic Rights” Conceptual, Measurement and Policy Issues,”

            University of Connecticut, October. 27-29, 2005.

 

Optional:

Rodrik, Dani. 1997. Has Globalization Gone Too Far? Washington, D.C.: Institute for

            International Economics, chapters 1-3.

Esty, Daniel. 2001. “Bridging the Trade-Environment Debate.” Journal of Economic Perspectives 15(3): 113-130.

Bhagwati, Jagdish.  2004.  In Defense of Globalization.  Chapter 12. Oxford: Oxford University

            Press.

Kabeer, Naila. 2004. “Globalization, labor standards, and women's rights: dilemmas of collective (in)action in an interdependent world.” Feminist Economics 10(1): 3-35.

Brown, Drusilla. 2001. “Labor Standards: Where Do They Belong on the International Trade Agenda?” Journal of Economic Perspectives 15(3): 89-112.

Gitterman, Daniel P. A race to the bottom, a race to the top or the march to a minumum floor?

            2002. UCIAS Edited volume 1, Dynamics of regulatory change.

DeMartino, G, Jonathan Moyer and Kate Watkins. “Achieving Ethical Trade through Social

Tariffs: A Simulation of a Global SITS Regime.”

Ederington, Josh, Arik Levinson and Jenny Minier. 2005. “Footloose and Pollution-Free.” The Review of Economics and Statistics 87(1): 92-99.

Braunstein, E. and Epstein, G., “How Much Bargaining Power Do 1.3 Billion Consumers Have?

         FDI in China,” PERI Working Paper.Working Paper No. 45, 2000.

Kishor Sharma, Labor standards and WTO rules: Survey of the issues with reference to child

            labor in South Asia. Journal of Economic Issues, March 2009. XLIII(1), pp.. 29-42.

Bagwell, Kyle and Robert Staiger. 2001. “The WTO as a Mechanism for Securing Market Access Property Rights: Implications for Global Labor and Environmental Issues.” Journal of Economic Perspectives 15(3): 69-88.

Galli, Rossana and David Kucera. 2004. “Labor Standards and Informal Employment in Latin America.” World Development 32(5): 809-828.

 

Trade Liberalization, Growth, Poverty and Inequality

(November 2)

 

Required:

Rodrik, Dani. 2001. The Global Governance of Trade as if Development Really Mattered. UNDP Background Paper.

Pinelopi Koujianou Goldberg and Nina Pavcnik, “Distributional Effects of Globalization in

         Developing Countries,” Journal of Economic Literature 45, no. 1 (March 2007), pp. 39-82.

Akyuz, Yilmaz, William Milberg, and Robert Wade. 2006. “Developing Countries and the Collapse of the Doha Round.” Challenge 49(6): 6-19.

 

Optional:

 

Bivens, Josh. 2007. “The Gains from Trade: How Big and Who Gets Them?” Economic Policy Institute Working Paper #280.

Rodríguez, Francisco and Dani Rodrik. 1999. “Trade Policy and Economic Growth: A Skeptic’s Guide to the Cross-National Evidence.” NBER Working Paper, No. 7081.

Baker, Dean. 2008 (January) Trade and inequality: The role of economists. Center for Economic

         and Policy Research, Washington DC. 

Dornbusch, Rudiger. 1992. “The Case for Trade Liberalization in Developing Countries.” Journal of Economic Perspectives 6(1): 69-85.

Joseph Stiglitz and Andrew Charlton, Fair Trade for all: How trade can promote development,

            Oxford: Oxford University Press, 2005.

Baldwin, Robert E.. 2000. “Trade and Growth: Still Disagreement about the Relationships.” OECD Economics Department Working Papers No. 264.

Bardhan, Pranab. 2004. “The Impact of Globalization on the Poor,” in Brookings Trade Forum. Washington, D.C.: Brookings Institution.

Frankel, Jeffrey and David Romer. 1999. “Does Trade Cause Growth?” The American Economic Review 89(3): 379-399.

Hallak, Juan Carlos and James Levinsohn. 2004. “Fooling Ourselves: Evaluating the Globalization and Growth Debate.” NBER Working Paper No. 10244.

Rodrik, Dani. 2005. “Why We Learn Nothing from Regressing Economic Growth on Policies.” Harvard University.

Sachs, Jeffrey and Andrew Warner. 1995. “Economic Reform and the Process of Global Integration.” Brookings Papers on Economic Activity 1: 1-118.

Winters, L. Alan, Neil McCulloch, and Andrew McKay. 2004. “Trade Liberalization and Poverty: The Evidence So Far.” Journal of Economic Literature 42(1): 72-115.

Samuelson, Paul. 2006.  The pros and cons of globalization. Japan and the world economy. 18,

         pp. 592-94.

 

Trade and Gender

(November 9)

 

Required:

Elson, Diane, Caren Grown, and Nilufer Cagatay. 2007. “Mainstream, heterodox and feminist trade theory,” in Irene van Staveren, Diane Elson, Caren Grown and Nilufer Cagatay (eds.) The Feminist Economics of Trade. London and New York: Routledge, pp. 33-52.

Elson, Diane and Ruth Pearson.  1981.  “Nimble fingers make cheap workers:  An analysis of women’s employment in Third World export manufacturing.”  Feminist Review, Vol. 7, pp. 87- 107.

M. Williams. 2007.  Gender issues in the multilateral trading system, in Irene van Staveren, Diane Elson, Caren Grown and Nilufer Cagatay (eds.) The Feminist Economics of Trade. London and New York: Routledge, pp. 277-91.

Seguino, Stephanie. 2000. “Gender Inequality and Economic Growth: A Cross-Country Analysis.” World Development 28(7): 1211-1230.

 

Optional:

 

Elson, Diane. 1996. “Appraising recent developments in the world market for nimble fingers.” In Amrita Chhachhi and Renee Pittin (eds.), Confronting State, Capital and Patriarchy: Women’ Organizing in the Process of Industrialization. St. Martin’s Press, Inc., New York.

van Staveren, Irene. 2007.  Gender indicators for monitoring trade agreements, in Irene van Staveren, Diane Elson, Caren Grown and Nilufer Cagatay (eds.) The Feminist Economics of Trade. London and New York: Routledge, pp. 257-276.

Braunstein, Elissa and Mark Brenner. 2007. “Foreign Direct Investment and Gendered Wages in Urban China.” Feminist Economics 13(3&4): 213-238.

Braunstein, Elissa. 2006. Foreign Direct Investment, Development and Gender Equity: A Review of Research and Policy. Geneva: United Nations Research Institute for Social Development.

Benería, Lourdes. 2003. “Economic Rationality and Globalization: A Feminist Perspective,” in Marianne Ferber and Julie Nelson (eds.) Feminist Economics Today: Beyond Economic Man. Chicago & London: The University of Chicago Press.

Cagatay, Nilufer. 2001. Trade Gender and Poverty. Background Paper for the United Nations Development Programme. Available at: www.undp.org/poverty/docs/ pov_tradegenderpoverty_doc.pdf

Kucera, David and William Milberg. 2000. “Gender Segregation and Gender Bias in Manufacturing Trade Expansion: Revisiting the ‘Wood Asymmetry.’” World Development 28(7): 1191-1210.

Fontana, Marzia and Adrian Wood. 2000. “Modeling the Effects of Trade on Women, at Work and at Home.” World Development 28(7): 1173-1190.

Seguino. Stephanie. 2007. “Is More Mobility Good? Mobile Capital and the Low-wage Low-Productivity Trap.” Structural Change and Economic Dynamics 18(1): 27-51.

Standing, Guy. 1999. “Global Feminization Through Flexible Labor: A Theme Revisited.” World Development 27(3): 583-602.

Caren Grown, Elissa Braunstein, and Anju Malhotra, eds., Trading women’s health and rights: Trade liberalization and reproductive health in developing countries, London: Zed Books, 2006. 

 

OTHER ISSUES:

 

Trade, Wages & Outsourcing: Empirical Evidence. Is Outsourcing Different From Regular Trade?

 

Required:

Krugman and Obstfeld, International Economics, p. 23 and pp. 273-76. [Students should

            purchase this book.]

Bhagwati, Jagdish, Arvind Panagariya and T.N. Srinivasan. 2004. “The Muddles over Outsourcing.” Journal of Economic Perspectives 18(4): 93-114.

Drezner, Daniel. 2004.  “The Outsourcing Bogeyman.” Foreign Affairs. 83, May/June.  pp. 22-34.

Freeman, Richard. 2003. “Trade Wars: The Exaggerated Impact of Trade in Economic Debate.” NBER Working Paper 10000.

Blinder, Alan.  2006.  “Offshoring: The Next industrial revolution.”  Foreign Affairs.  85(2), pp. 113-128.

Wood, Adrian. 1995. “How Trade Hurt Unskilled Workers.” Journal of Economic Perspectives 9(3): 57-80.

Bivens, Josh. 2007. “Globalization, American Wages and Inequality: Past, Present and Future.” Economic Policy Institute Working Paper No. 279.

 

Optional:

Samuelson, Paul. 2004. “Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization.” Journal of Economic Perspectives 18(3): 135-146.

Freeman, Richard. 1995. “Are Your Wages Set in Beijing?” The Journal of Economic Perspectives 9(3): 15-32.

Mankiw, Greg and Philip Swagel.  2006. “The Politics and Economics of Offshore Outsourcing.” NBER Working Paper, 12398, July. 

David Wessel and Bob Davis.  2007 (March 28).  “Prospects: Pain From Free Trade Spurs

            Second Thoughts; Mr. Blinder's Shift Spotlights Warnings Of Deeper Downside.” Wall

            Street Journal,   p. A.1.

Hanson, Gordon and Ann Harrison. 1995. “Trade, Technology and Wage Inequality.” NBER

Working Paper 5110.

Leamer, Edward. 1998. “In Search of Stolper-Samuelson Linkages between International Trade and Lower Wages,” in Susan Collins (ed.) Imports, Exports and the American Worker. Washington, D.C.: Brookings Institution.

Rodrik, Dani. 1997. Has Globalization Gone Too Far? Washington, D.C.: Institute for International Economics, chapters 1-3.

Slaughter, Matthew. 1999. “Globalization and Wages: A Tale of Two Perspectives.” World Economy 22: 609-630.

Wood, Adrian. 1997. “Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom.” The World Bank Economic Review 11(1): 33-57.

Milanovic, B. and Squire, L., “Does Tariff Liberalization Increase Wage Inequality? Some

      Empirical Evidence,” NBER Working Paper Number 11046, Washington DC, 2005.

 

Trade and the Environment

 

Kevin P. Gallagher. “International Trade and Sustainable Development,” in Handbook of

Sustainable Development, ed. Neumayer, Eric. London: Edward Elgar, 2007: 413-430.

Kevin P. Gallagher. Free trade and the environment. Stanford University Press, 2004. Chapters 

            1-3 and 7.

Bhagwati, Jagdish.  1993 (November).  “The case for free trade.” Scientific American.  pp. 41-57

            (these pages include the Daly article below). 

Daly, Herman, 1993 (November). “The perils of free trade” in Scientific American.

French, Hilary.  1993 (March) Costly tradeoffs: reconciling trade and the environment.

            Worldwatch paper, No. 113. 

Shrybman, Steven. 1991 (Winter). Trading away the environment. World Policy Journal. 9(1),

            pp. 93-110. 

Chapman, Duane. 1991 (Summer). Environmental standards and international trade in

            automobiles and copper: The case for a social tariff. Natural resources journal 3(3), pp.

            449-61. 

 

China and Global Trade

 

Robert Lawrence, “China and the Multilateral Trading System,” NBER Working Paper No.

            12759, December 2006.

Rodrik, Dani. 2006. “What’s so special about China’s exports?”

Barry Eichengreen, Yeongseop Rhee, and Hui Tong, “The Impact of China on the Exports of

            Other Asian Countries,” WP no. w10768, September 2004.

Gallagher, Kevin P., Juan Carlos Moreno-Brid, and Roberto Porzecanski, 2008, “The Dynamism

            of Mexican Exports: Lost in (Chinese) Translation?” World Development, 36(8), pp.

            1365-80.  

Richard B. Freeman, “Does Globalization of the Scientific/Engineering Workforce Threaten US

            Economic Leadership?” NBER Working Paper 11457, June 2005.

 

Optional:

Peter K. Schott, “The Relative Sophistication of Chinese Exports,” NBER Working Paper, No.

            W12173, April 2006.

Robert Dekle, Jonathan Eaton and Samuel Kortum, “Unbalanced Trade,” NBER Working Paper

            No. 13035, 2007.

 

The Political Economy of the WTO

 

John H. Barton et al., The Evolution of the Trade Regime: Politics, Law, and Economics of the

         GATT and the WTO (Princeton University Press, 2006), chapter 7, pp. 61-90.

Gallagher, Kevin P. “Understanding Developing Country Resistance to the Doha Round.”

            Review of International Political Economy, 15:1, February, 2008, 62-85.

Alice Amsden, “Promoting industry under WTO law, in Kevin Gallagher (ed.) Putting

         development first: the importance of policy space in the WTO and IFIs, 2005, London: Zed

         Books, pp. 216-232.

Ajit Singh, “Special and differentiated treatment: The multilateral trading system and economic

         development in the twenty-first century, in Kevin Gallagher (ed.) Putting development

         first: the importance of policy space in the WTO and IFIs, 2005, London: Zed Books, pp.

         233-263.

Susan Ariel Aaronson, “Seeping in Slowly: How Human Rights Concerns are Penetrating the

         WTO,” World Trade Review 6, no. 3 (November 2007), pp. 413–49.

Dani Rodrik, “The Global Governance of Trade as if Development Really Mattered,” UNDP,

            New York, 2001.

Rose, A.K., 2002, “Do WTO Members have More Liberal Trade Policy?” NBER Working Paper

            No. 9347, Cambridge, MA: NBER.

 

Optional:

Aadity Mattoo and Arvind Subramanian, “The WTO and the Poorest Countries:  The Stark

         Reality,” World Trade Review 3, no. 3, November 2004, pp. 385-407.

Donald MacLaren, “The Role of the WTO in Achieving Equity and Efficiency in International

         Markets for Agricultural Products,” World Trade Review 4, no. 2 (July 2005), pp. 229-47. 

Gilbert R. Winham, “International Regime Conflict in Trade and Environment: The Biosafety

         Protocol and the WTO,” World Trade Review 2, no. 2 (July 2003), pp 131-155.        

Arvind Subramanian, Shang-Jin Wei, “The WTO Promotes Trade, Strongly But Unevenly,”

            NBER Working Paper, No._, 2003.

Robert E. Hudec, “Free Trade, Sovereignty, Democracy: The Future of the World Trade

         Organization,” World Trade Review 1, no. 2 (July 2002): 211-22.

Ernst-Ulrich Petersmann, “Human Rights, Cosmopolitan Democracy and the Law of the World

         Trade Organization,” in Ian Fletcher et al., eds., Foundations and Perspectives of

         International Trade Law (London: Sweet & Maxwell, 2001), chap. 8, pp. 79-96.

Sabrina Shaw and Risa Schwartz, “Trade and Environment in the WTO: State of Play,” Journal

         of World Trade 36, no. 1 (February 2002), pp. 129-154.

 

Terms of Trade and Unequal Exchange vis-à-vis Developing Countries

 

Required:

Singer, H.W. 1950. “The Distribution of Gains Between Investing and Borrowing Countries.”

            American Economic Review 40(2): 473-485.  (This is a “classic” article.)

Sarkar, P. and H.W. Singer. 1991. “Manufactured Exports of Developing Countries and Their

      Terms of Trade Since 1965.” World Development 19(4): 1991.

Heintz, James. 2006. “Low-wage manufacturing and global commodity chains: a model in the unequal exchange tradition.” Cambridge Journal of Economics 30(4): 507-520.

 

Optional:

 

Emmanuel, Arighiri. 1972. Unequal Exchange. A Study of the Imperialism of Free Trade. New

      York: Monthly Review Press.  [Read entire book—the book is on reserve (hard copy) at Penrose Library.]

Darity, William and Lewis Davis. 2005. “Growth, Trade and Uneven Development.” Cambridge Journal of Economics 29(1): 141-170.

Prebisch, R. 1962. “The Economic Development of Latin America and Its Principal Problems.”             Economic Bulletin for Latin America.  (This is s a “classic” article.)

Bacha, Edmar. 1978. “An Interpretation of Unequal Exchange from Prebisch-Singer to

      Emmanuel.” Journal of Development Economics 5(4): 319-330.

Milberg, W. 1994. "Is Absolute Advantage Passe? Towards a Keynesian /Marxian Theory of

         International Trade”, in Competition,Technology and Money, Classical and Post-

         Keynesian Perspectives, ed. Mark Glick, Edward Elgar, Great Britain.

Lucke, M. 1993. “Developing Countries Terms of Trade in Manufactures, 1967-87: A Note.” Journal of Development Studies 29(3):

Sapsford, D. and Chen, John-ren, “The Prebisch-Singer Terms of Trade Hypothesis: Some

         (Very) New Evidence,” in Development Economics and Policy, ed. Sapsford and Chen,

         NY: St. Martin’s Press, 1998.

Zanias, George, “Testing for trends in the terms of trade between primary commodities and

         manufactured goods,” Journal of Development Economics, 78, pp. 49-59, 2005.

Diakosavvas, D and Scandizzo, P., “Trends in the Terms of Trade of Primary Commodities,

         1900- 1982: The Controversy and its Origins,” Economic Development and Cultural

         Change, 39(2), pp. 231-264, Jan. 1991.

 

*Note: PhD students planning to take the comprehensive exam in International Political Economy should be sure to read the material on this topic.