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Recommended Topical Readings

There is no required textbook for this course, but I highly recommend the book by Robert C. Feenstra: Advanced International Trade: Theory and Evidence, Princeton University Press, 2004. Feenstra's book is very readable and an excellent resource.

The course is organized around particular questions, typically with a week devoted to each. Required readings are listed below for each question and session. KH-# refers to chapters from Keith Head's textbook Elements of Multinational Strategy, available online (free for UBC students). LL-# refers to section numbers from Ed Leamer and J. Levinsohn International Trade Theory: The Evidence in G. Grossman and K. Rogoff (eds.) Handbook of International Economics Vol. III 1995, also available as NBER working paper 4940. Below is a list of articles that will be discussed in individual sessions. (Follow the links to download the papers as PDF files. All files are password protected, as UBC is required to restrict access. The password will be made available during our first meeting.) Papers marked with ••• are essential readings that should be read carefully and thoroughly; when reading unmarked papers you may wish to skip over theory sections that are too technical.

[AV04]  Anderson, James E.; and van Wincoop, Eric: "Trade Costs". Journal of Economic Literature 42(3), September 2004, 691-751. •••
[AT01]  Antweiler, Werner; Copeland, Brian R.; and M. Scott Taylor: "Is Free Trade Good for the Environment?". American Economic Review 91(4), September 2001, 877-908. •••
[BJ99]  Bernard, Andrew B.; and Jensen, Bradford: "Exceptional Exporter Performance: Cause, Effect, or Both?". Journal of International Economics 47(1), February 1999, 1-25. •••
[RS07]  Bernard, Andrew B.; Jensen, J. Bradford; Redding, Stephen J.; and Schott, Peter K.: "Firms in International Trade". Journal of Economic Perspectives 21(3), Summer 2007, 105-130. •••
[DW01]  Davis, Donald R.; and Weinstein, David E.: "The Factor Content of Trade". NBER Working Paper No. 8637. December 2001. •••
[DW03]  Davis, Donald R.; and Weinstein, David E.: "Market Access, Economic Geography and Comparative Advantage: An Empirical Test". Journal of International Economics 59(1), January 2003, 1-23. •••
[HR01]  Head, Keith; and Ries, John: "Overseas Investment and Firm Exports". Review of International Economics 9(1), February 2001, 108-122. •••
[MT12]  Melitz, Marc J; and Trefler, Daniel: "Gains from Trade When Firms Matter". Journal of Economic Perspectives 26(2), Spring 2012, 91-118. •••
[RR99]  Rodriguez, Francisco; and Rodrik, Dani: "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence". NBER Working Paper 7081. April 1999. •••
[TR95]  Trefler, Daniel: "The Case of the Missing Trade and Other Mysteries". American Economic Review 85(5), December 1995, 1029-1046. •••

[AA11]  Ahn, JaeBin; Amiti, Mary; and Weinstein, David: "Trade Finance and the Great Trade Collapse". American Economic Review 101(3), May 2011, 298-302.
[AH99]  Aitken, Brian J.; and Harrison, Ann E.: "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela". American Economic Review 89(3), June 1999, 605-618.
[AW11]  Amiti, Mary; and Weinstein, David: "Exports and Financial Shocks". Quarterly Journal of Economics 126(4), 2011, 1841-1877.
[AK08]  Armenter, Roc; and Koren, Miklós: "A Balls-and-Bins Model of Trade". Working Paper. 2008.
[BG05]  Baggs, Jen: "Firm survival and exit in response to trade liberalization". Canadian Journal of Economics 38(4), November 2005, 1364-1383.
[BB04]  Baier, Scott L.; and Bergstrand, Jeffrey H.: "Economic determinants of free trade agreements". Journal of International Economics 64(1), October 2004, 29-63.
[BT06]  Baldwin, Richard; and Taglioni, Daria: "Gravity for Dummies and Dummies for Gravity Equations". NBER Working Paper No. 12516. September 2006.
[BS12]  Bastos, Paulo; and Silva, Joana: "Networks, firms, and trade". Journal of International Economics 87(2), July 2012, 352-364.
[BE03]  Bernard, Andrew B.; Eaton, Jonathan; Jensen, J. Bradford; and Kortum, Samuel: "Plants and Productivity in International Trade". American Economic Review 93(4), September 2003, 1268-1290.
[BJ04]  Bernard, Andrew B.; and Jensen, J. Bradford: "Why some firms export". Review of Economics and Statistics 86(2), May 2004, 561-569.
[BJ07]  Bernard, Andrew B.; and Jensen, J. Bradford: "Firm Structure, Multinationals, and Manufacturing Plant Deaths". The Review of Economics and Statistics 89(2), May 2007, 193-204.
[BL01]  Blonigen, Bruce A.: "In Search of Substitution between Foreign Production and Exports". Journal of International Economics 53(1), February 2001, 81-104.
[BR97]  Brainard, S. Lael: "An Empirical Assessment of the Proximity-Concentration Trade-off between Multinational Sales and Trade". American Economic Review 87(4), September 1997, 520-544.
[CH08]  Chaney, Thomas: "Distorted Gravity: The Intensive and Extensive Margins of International Trade". American Economic Review 98(4), 2008, 1707-1721.
[CL01]  Clausing, Kimberly A.: "Trade Creation and Trade Diversion in the Canada-United States Free Trade Agreement". Canadian Journal of Economics 34(3), August 2001, 677-696.
[CC08]  Crespi, Gustavo; Criscuolo, Chiara; and Haskel, Jonathan: "Productivity, exporting, and the learning-by-exporting hypothesis: direct evidence from UK firms". Canadian Journal of Economics 41(2), May 2008, 619-638.
[DW96]  Davis, Donald R.; and Weinstein, David E.: "Does Economic Geography Matter for International Specialization?". NBER Working Paper No. 5706. August 1996.
[EP05]  Edmonds, Eric V.; and Pavcnik, Nina: "The effect of trade liberalization on child labor". Journal of International Economics 65, March 2005, 401-419.
[EV03]  Evans, Carolyn L.: "The Economic Significance of National Border Effects". American Economic Review 93(4), September 2003, 1291-1312.
[FE02]  Feenstra, Robert C: "Border Effects and the Gravity Equation: Consistent Methods of Estimation". Scottish Journal of Political Economy 49(5), November 2002, 491-506.
[FH01]  Feenstra, Robert C.; and Hanson, Gordon: "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages". NBER Working Paper No. 8372. 2001.
[FW04]  Freund, Caroline L.; and Weinhold, Diana: "The effect of the Internet on International Trade". Journal of International Economics 62(1), January 2004, 171-189.
[GG08]  Girma, Sourafel; Görg, Holger; and Pisu, Mauro: "". Canadian Journal of Economics 41(1), February 2008, 320-340.
[GK95]  Grossman, Gene M.; and Krueger, Alan B.: "Economic Growth and the Environment". Quarterly Journal of Economics 110(2), May 1995, 353-377.
[HX04]  Hanson, Gordon H.; and Xiang, Chong: "The Home-Market Effect and Bilateral Trade Patterns". American Economic Review 94(4), September 2004, 1108-1129.
[HM00]  Head, Keith; and Mayer, Thierry: "Non-Europe: The Magnitude and Causes of Market Fragmentation in Europe". Weltwirtschaftliches Archiv/Review of World Economics 136(2), 2000, 285-314.
[HR99]  Head, Keith; and Ries, John: "Rationalization effects of tariff reductions". Journal of International Economics 47(2), April 1999, 295-320.
[HM08]  Helpman, Elhanan; Melitz, Marc; and Rubinstein, Yona: "Estimating Trade Flows: Trading Partners and Trading Volumes". Quarterly Journal of Economics 123(2), May 2008, 441-487.
[HU07]  Hummels, David: "Transportation Costs and International Trade in the Second Era of Globalization". Journal of Economic Perspectives 21(3), Summer 2007, 131-154.
[JB11]  Javorcik, Beta S.; Özden, Caglar; Spatareanu, Mariana; and Neagu, Cristina: "Migrant networks and foreign direct investment". Journal of Development Economics 94(2), March 2011, 231-241.
[KD09]  Kellenberg, Derek: "An empirical investigation of the pollution haven effect with strategic environment and trade policy". Journal of International Economics 78(2), July 2009, 242-255.
[LW09]  Lawless, Martina: "Deconstructing Gravity: Trade Costs and Extensive and Intensive Margins". Canadian Journal of Economics 43(4), November 2010, 1149-1172.
[MH09]  Managi, Shunsuke; Hibiki, Akira; and Tsurumi, Tetsuya: "Does trade openness improve environmental quality?". Journal of Environmental Economics and Management 58(3), November 2009, 346-363.
[MC95]  McCallum, John: "National Borders Matter: Canada-U.S. Regional Trade Patterns". American Economics Review 85(3), June 1995, 615-23.
[PA02]  Pavcnik, Nina: "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants". The Review of Economic Studies 69(1), January 2002, 245-276.
[TR93]  Trefler, Daniel: "International Factor Price Differences: Leontief was Right!". Journal of Political Economy 101(6), December 1993, 961-987.
[TZ10]  Trefler, Daniel; and The structure of factor conent predictions: "". Journal of International Economics 82(2), November 2010, 195-207.

Additional References
(from previous course years)

[EM03]  Ederington, Josh; and Minier, Jenny: "Is Environmental Policy a Secondary Trade Barrier? An Empirical Analysis". Canadian Journal of Economics 36(1), February 2003, 137-154.
[GG04]  Görg, Holger; and Greenaway, David: "Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?". World Bank Research Observer 19(2), Fall 2004, 171-197.
[HE06]  He, Jie: "Pollution haven hypotheses and environmental impacts of foreign direct investment: The case of industrial emisions of sulfur dioxide (SO2) in Chinese provinces". Ecological Economics 60(1), November 2006, 228-245.
[JS06]  Javorcik, Beata S.; and Spatareanu, Mariana: "To Share or Not To Share: Does Local Participation Matter for Spillovers from Foreign Direct Investment?". Rutgers University Working Paper. February 2006.
[LT08]  Levinson, Arik; and Taylor, M. Scott: "Unmassking the Pollution Haven Effect". International Economic Review 49(1), February 2008, 223-254.
[LM03]  Litchfield, Julie; McCulloch, Neil; and Winters, L. Alan: "Agricultural Trade Liberalization and Poverty Dynamics in Three Developing Countries". American Journal of Agricultural Economics 85(3), 2003, 1285-1291.
[NN07]  Nunn, Nathan: "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade". Quarterly Journal of Economics 122(2), May 2007, 569-600.
[RA99]  Rauch, James: "Networks versus Markets in International Trade". Journal of International Economics 48(1), June 1999, 7-35.
[RO02]  Rose, Andrew: "Do WTO Members have More Liberal Trade Policy?". NBER Working Paper No. 9347. November 2002.
[RO04]  Rose, Andrew: "Do We Really Know That the WTO Increases Trade?". American Economic Review 94(1), March 2004, 98-114.
[RO06]  Rose, Andrew K.: "The Foreign Service and Foreign Trade: Embassies as Export Promotion". NBER Working Paper No. 11111. February 2005.
[WW08]  Wacziarg, Romain; and Welch, Karen Horn: "Trade Liberalization and Growth: New Evidence". The World Bank Economic Review 22(2), 2008, 187-231.
[WA03]  Wagner, Don: "Aid and Trade - An empirical study". Journal of Japanese and International Economics 17(2), June 2003, 153-173.
[WH02]  Wagner, Don; Head, Keith; and Ries, John: "Immigration and the Trade of Provinces". Scottish Journal of Political Economy 49(5), November 2002, 507-525.

You can also obtain a CD-ROM image of all PDF files with the above readings. Download the .iso CD image to your computer. Insert a blank CD into your CD drive. On Windows PCs, start Windows Explorer, right click the file name, and select Copy image to CD. On Mac OS-X, download the .cdr CD image and use disk utility to burn the image to the CD.

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