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2023/2024  BA-BHAAV2314U  International Trade and Economic Geography

English Title
International Trade and Economic Geography

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Quarter
Start time of the course Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 50
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • David Jinkins - Department of Economics (ECON)
Main academic disciplines
  • Globalisation and international business
  • Statistics and quantitative methods
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 08-02-2023

Relevant links
Learning objectives
  • Correctly employ methodology from recent quantitative trade and geography models
  • Manipulate data on trade and economic geography in order to estimate relevant models
  • Explain the meaning of model parameters and defend choice of values for numerical estimates
  • Motivate a relevant research question
  • Clearly explain results of data analysis
Examination
International Trade and Economic Geography:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Written assignment
Release of assignment Subject chosen by students themselves, see guidelines if any
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Spring
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

The exam is an application of the techniques from class to a related question and data set of the student’s choice.  The home assignment should contain motivation in the form of a research question, a description of the methods used to answer the question, a description of the data, and the results of the data analysis.  The project should demonstrate the students understanding of the course material and mastery of the learning objectives.  The project can be started as soon as the course begins
Course content, structure and pedagogical approach

International trade

 

Look around the room where you are sitting.  Where were the items around your manufactured?  With the exception of an antique chair in my office, nothing I can see around me was made in Denmark. Extensive international trade is a fact in our lives. 

 

One branch of international trade asks whether this is a good thing. How does international trade affect people’s livelihoods?  A basic international economics course demonstrates reasons why we might expect there to be gains from trade, and also why trade might affect different people differently. The breakthrough in the last 25 years of research is the development of techniques to measure these gains from trade using real world data.  Learning how these models work and how to apply them will be part of this course.

 

A second branch of the international trade literature asks how trade policy affects welfare.  The United States recently raised tariffs on China.  The EU has sanctioned Russia.  Less dramatically, Ireland has become the headquarters of many multinational firms with low corporate taxes.  In this course students will learn how to apply quantitative models which analyze how trade policy affects the economy using real world data.

 

Economic geography

 

How does infrastructure like roads and railways affect where cities are?  How does building something like a metro in a city affect the decisions of where people live and work within a city?  How would rising oceans due to climate change affect where people choose to live? Taking a note from the quantitative trade models discussed above, in the last fifteen years researchers have developed tools to discuss economic questions like these within a country.  In this course students will learn how to apply the tools of quantitative economic geography.

 

Course prerequisites: I consider this an advanced undergraduate course.  Students should have had several economics courses before this one, and preferably basic international economics.  This course will be involve mathematical modeling, programming, and data work.  I expect students to be comfortable working with mathematical models including basic calculus.  I also expect students to have basic coding experience in a language such as python, matlab, R, or stata. 
Description of the teaching methods
The course will be split evenly into lectures where the relevant models and tools will be described, and computer sessions where the tools will be applied. We will make use of replication files from relevant published papers. Therefore, we may be manipulating code in several computer languages as the course progresses.
Feedback during the teaching period
Computer sessions will be hands-on, and students will be able to work closely with the lecturer to increase their understanding of the quantitative models described during the lectures.
Student workload
Lectures and computer sessions 38 hours
Preparation + exam 168 hours
Expected literature

This literature is subject to change

 

Anderson and Von Wincoop: Gravity with Gravitas

 

New Trade Models, Same Old Gains?

Costas Arkolakis, Arnaud Costinot and Andrés Rodríguez-clare

 

Advanced Guide to Trade Policy Analysis: The Structural Gravity Model WTO: https:/​/​www.wto.org/​english/​res_e/​reser_e/​structural_gravity_e.htm (stata replication code)

 

Annual Review of Economics Quantitative Spatial Economics Stephen J. Redding and Esteban Rossi-Hansberg (matlab replication code available)
Last updated on 08-02-2023