Matthews, reciprocal demand and increasing returns, r eview of e conomic s tudies. In this book, james markusen provides a comprehensive integration of the two fields. The boundaries of multinational enterprises and the theory of international trade. Multinational firms, offshoring, outsourcing, and environment james r. 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. They found that multinational companies encourage the potential of. Readings international trade economics mit opencourseware. Aug 27, 2018 click on the title to browse this issue. An introduction to international trade theory a shortcourse presented at the kiel institute for world economics january 920, 2006 james r.
International trade, european regionalism and trade as. The primary objective of this project is to provide a quantitative evaluation the impact of fdi on trade, domestic investment in physical capital and real gdp per capita in the asiapacific region. You will get far more out of the lectures if you work through the background reading ahead of. Theory and policy winter term 20102011 course description and objectives this course gives an overview of world trade patterns and trade policies. Comparative advantage illustrates why countries trade and how international trade can make every worker in each country better off. A solution linking production and preferences justin caron thibault fally james r. Estimating international trade margins shares by mode of. International trade theory university of colorado boulder. Markusen university of colorado, boulder this short course will focus on the theory of international trade, with some reference to empirical evidence. Drawing on twenty years of research, he focuses on the interaction of scale. Innovation, technology transfer and international trade. 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. The boundaries of multinational enterprises and the theory of. England needs 120 labourers to produce the same amount of wine that portugal produces with 80 labourers ricardo 2004b, p.
Multinational firms and the theory of international trade. Markusen march 2014 forthcoming in the quarterly journal of economics abstract international trade literature tends to focus heavily on the production side of general equilibrium, leaving us with a number of empirical puzzles. Econ 631 advanced international trade university of waterloo. Gams chapter 1 2012 jensen gams chapter 2 20 markusen gams chapter 3 2012 markusen. These documents are issued by the shipping line, airline, international trucking company, railroad, freightforwarder or logistics company. For a discussion of partial equilibrium treatments, see caves 1995 and markusen 1995, 2001. Ottaviano university of bologna, feem and cepr first version received may 2006. Markusen, james r melvin, james r kaempfer, william and maskus, keith. The boundaries of multinational enterprises and the theory of international trade james r. Graduate international trade course econ 84 fall 2017. United states international trade commission, publication 3621, au. Intraindustry trade under perfect monopolistic competition. It systematically examines alternative causes of trade and the consequence of each.
Consumers with supplier trade data hottman, colin j. The ricardian model chapter 2 the specificfactors model. Markusen university of colorado, boulder university college dublin eth zurich may 2528 each lecture will be approximately two hours. By james markusen, james melvin, keith maskus and william kaempfer. Markusen, james 1995 the boundaries of multinational enterprises and the theory of international trade. A simple theory of trade with multinational corporations, jpe 1984 markusen, j. Markusen, trade and the gains from trade with imperfect competition, journal f international economics, 1981, 1174, in grossman, readings. Labor is the only factor of production, labor supply is fixed in both countries, and workers. Lecture notes in international trade policy cevat gerni beykent universityistanbul 2010. Market size, trade, and productivity scholars at harvard.
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, an introduction to international trade theory, 2006,january 920,university of colorado, boulder. Offshoring of goods and services chapter 6 tariffs and quotas under imperfect competition chapter 9 international agreements on trade, labor, and the environment chapter 11 as well as core topics. Feenstra, robert 1998 integration of trade and disintegration of production in the global economy. It provides an introduction to the basic theories of international trade which aim at explaining the determinants. International trade is critical to economic development. Trade in producer services and in other specialized intermediate inputs. The 20th century ushered in an era of global trade that was dominated by multilateral and regional systems. Markusen mit press 2002 isbn 02624160 table of contents acknowledgments preface 1. Markusen international trade literature tends to focus heavily on the production side of general equilibrium, leaving us with a number of empirical puzzles. Searching for the effect of immigration on the labor market. Graduate international trade course econ 84 fall 2017 universityofcolorado,boulder instructor. A comprehensive, balanced text, international trade. My training was in traditional international trade theory, which had been.
When trade costs are high, a firm becomes multinational by building production plants at both home and abroad, each serving just 1 we restrict our attention to general equilibrium models of multinational firms. Nonhomothetic preferences are important in understanding other aspects of international trade as well. Trade and trade policy in agricultural commodities i. A solution linking production and preferences justin caron, thibault fally and james r. Drawing on twenty years of research, he focuses on the interaction of scale economies, trade costs, factor endowments, and imperfect competition. Ethier, decreasing costs in international trade and frank grahams argument for protection, e conometrica 50, 1982, pp 124368. Venablesa, b auniversity of colorado,nber and cepr boulder co, 80309,usa. Nonetheless, even if international trade only contributes a small portion to structural change, we show that structural change plays a large role in the growth of world trade. Multinational firms and the theory of international trade munich. A much revised version is due to be published in 2011.
Estimating unequal gains across consumers with supplier trade. There is, for example, considerably less world trade than predicted by. George borjas, richard freeman and lawrence katz, searching for the effect of immigration. The boundaries of multinational enterprises and the theory. Imperfect competition and international trade feenstra, ch.
Theory and evidence james r markusen, james r melvin, william m kaempfer, keith maskus on. International trade theory and evidence by markusen melvin kaempfer and maskus free ebook download as pdf file. In this course we will start with the development of the basis of trade. Nov 12, 2015 international trade is a split volume from the text, covering. 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. Trade and the gains from trade with imperfect competition. Innovation, technology transfer and international trade daniel f. Yeaple, multinational enterprises, international trade, and. Journal of international economics 46 1998 183203 multinational. Firms in the global economy and international factor movements kom chapter 8. Ceta lowers variable trade costs by removing 98% of bilateral tariffs between canada and the european union international center for trade and sustainable development,2017a. To produce the same amount of cloth, england needs 100 labourers and portugal 90 labourers.
International trade university college london term 1, 201819 mclaren. Neoclassical trade theory, domestic policies and international trade markusen, j. Models of horizontal firms include markusen 1984, horstmann and. An introduction to international trade theory phd course, university college dublin, january may, 2010 james r.
This course gives an overview of world trade patterns and trade policies. The student who understands all the properties of this model has already come a long way in his or her study of international trade. Trade and investment liberalization in the processed food. Melitz princeton university, nber, and cepr and gianmarco i. 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. The boundaries of multinational enterprises and the theory of international trade by james r.
Theory and evidence is the perfect book for international trade courses at the undergraduate level. Melvin, the gainsfromtrade theorem with increasing returns to scale, ch 2 in kier. In this chapter, we simplify things by focusing primarily on one country, treating world prices as given, and examine the properties of this twobytwo model. On the economic impact of fdi and trade liberalization in the.
I will code x output in the file as x75, so x 1 in the initial calibration. This is a secondyear graduate class for econ phd students, the sequel to 8401. I wanted to maintain the generalequilibrium focus which is the great strength of trade theory. For each available origindestinationgtap sector triplet, we estimate the fractional share of the transport margin attributable to air, water, and other shipping modes.1495 48 157 1129 1015 748 419 1030 956 1600 1126 1514 1211 4 694 790 302 1314 292 778 286 788 1148 265 287 1538 654 1371 892 37 896 792 1513 1606 31 1062 511 1330 1222 205 1425 1176 168 691 408 224 503 326 231 695