This lecture covers advanced topics in international economics with a special emphasis on the activity of multinational firms. Topics include the role of multinational firms in the global economy, in particular the determinants and effects of multinational foreign activities, and the effect of international outsourcing on industrial development.
The exam consists on an essay.
General Introduction
Antràs, P., and S.R. Yeaple. 2014. Multinational Firms and the Structure of International Trade. Handbook of International Economics, 4:55-130, 4, 55-130. (Appendix)
Rodriguez-Clare, A., Ramondo N. and F. Tintelnot 2015. Multinational Production: Data and Stylized Facts. American Economic Review, Paper and Proceedings, 105(5):530-36. (data documentation and data)
Part 1: The Proximity Concentration Trade-Off (PDF)
Brainard, S.L., 1993. A Simple Theory of Multinational Corporations with a Tradeoff between Proximity
and Concentration. NBER Working Paper 4269.
Brainard, S.L., 1997. An empirical assessment of the proximity-concentration trade-off between multinational sales and trade. American Economic Review 87(4), 520–544.
Helpman, E., Melitz, M.J., Yeaple, S.R., 2004. Exports versus FDI with heterogenous firms. American Economic Review 94 (1), 300–316.
Markusen, J.,Venables, A., 1998. Multinational firms and the new trade theory. Journal of International Economics 46 (2), 183–203.
Markusen, J.R.,Venables, A.J., 2000. The theory of endowment. Intra-industry and multinational trade. Journal of International Economics 52, 209–234.
Part 2: Vertical FDI and the Labor Market (PDF1)
Helpman, E., 1984. A Simple Theory of International Trade with Multinational Corporations. Journal of Political Economy, 92:3, pp. 451-471.
Yeaple, S., 2003. The role of skill endowments in the structure of U.S. outward foreign direct investment. Review of Economics and Statistics, 85(3): 726–734.
Feenstra, R.C., Hanson, G.H., 1996. Foreign investment, outsourcing and relative wages. In: Feenstra, R.C., Grossman,G.M., Irwin, D.A. (Eds.),The Political Economy of Trade Policy:Papers in Honor of Jagdish Bhagwati.The MIT Press, Cambridge, MA.
Part 3: Outsourcing vs. FDI (PDF2)
Antràs, P., 2003. Firms, Contracts, and Trade Structure. Quarterly Journal of Economics, 118 (4): 1375-1418.
Antràs, P., 2005a. Property-Rights and the International Organization of Production. American Economic Review Papers and Proceedings, May 2005, 25-32.
Antràs, P., 2005b. Incomplete Contracts and the Product Cycle. American Economic Review, 95 (4): 1054-1073.
Antràs, P., and E., Helpman 2004. Global Sourcing. Journal of Political Economy, 112 (3): 552-580.
Grossman, G.M. and E., Helpman 2002. Integration vs. Outsourcing in Industry Equilibrium. Quarterly Journal of Economics 117 (1): 85-120.
Grossman, G.M. and E., Helpman 2005. Outsourcing in a Global Economy. Review of Economic Studies 72: 135–159.