Course overview
This course covers the high-level theoretical and contemporary econometric tools necessary to understand, analyse, and evaluate recent empirical and theoretical research in international trade. The course deals with the theory and practice of international trade and of trade-related policies. It focuses on the advanced analysis of topic such as; the gains from trade, the changing patterns of trade, the income distributional consequences of liberalising foreign trade, the relationship between trade, investment, and economic growth, and the reasons for and consequences of various trade policies.
- Compare at the level of formal analysis the major models of international trade and be able to distinguish between them in terms of their assumptions and economic implications
Course learning outcomes
- Compare at the level of formal analysis the major models of international trade and be able to distinguish between them in terms of their assumptions and economic implications
- Apply partial equilibrium and (where required) general equilibrium models in analysing the economic effects of various trade policies, including tariffs, quotas, subsidies, and trade agreements
- Distinguish and critically analyse the main arguments for trade protection and conversely be able to critically evaluate the arguments for free trade, taking into account the costs and benefits of trade policy measures on different sections of the community
- Identify major recent developments in the world trading system and be able to critically analyse key issues raised both by multilateral and regional trade arrangements
- Form the relationship between international trade theory and observed trade flows through evidence-based analysis. Demonstrate understanding of how the relationship among trade policy, trade practice and geopolitics can lead to sub-optimal welfare and growth outcomes