PA 856: Trade, Competition, and Governance in a Global Economy
This site provides resources for students in PA 856
at the University of Wisconsin,
Madison for Fall 2008 Semester
Figure 1: 'Spaghetti bowl' RTAs in the Western Hemisphere. Original source: Richard Baldwin, "Multilateralising regionalism: The WTO’s next challenge," VoxEU, February 29, 2008.
Important Dates |
Downloadable Course Materials and Information Sources |
Robert M. LaFollette School of Public Affairs |
LECTURE: MW 1l:00-12:15, 54 Bascom
Professor Menzie Chinn
M 2-4 in 1225 Observatory Drive Associate Director’s Office, Tel: 263-1802
Alternate office: Social Sciences Bldg, Rm. 7418, Tel: 262-7397
PA856 Syllabus in PDF file.
This course provides an introduction to international trade policy. Its purpose is to provide students with an understanding of international trade theory, rules, politics and institutions and the major policy issues facing the global trading system. The first part of the course presents a treatment of the theory of international trade. It explores the rationale for free trade, the distributional impact of trade, the impact of tariffs and quotas and the challenges presented by deeper international economic integration. The second part of the course deals with the World Trade Organization. It explores negotiation mechanisms and principles and the rules relating to market access, dispute settlement, fair trade, safeguards and trade-related intellectual property. (TRIPs). The third part considers major issues facing the trading system. These include regional trading arrangements, foreign investment, China’s entry into the WTO and the Doha Development Agenda.
The required textbooks, available at the UW Bookstore, are:
- Rob Feenstra and Alan Taylor, International Trade (Worth, 2007).
- Charan Devereaux, Robert Z. Lawrence and Michael D. Watkins, Case Studies in US Trade Negotiation, Volumes 1 and 2
(Peter G. Peterson Institute for International Economics).
Additional assigned readings will be available on the Web (via links on this website). Required Additional Readings
- Makeup class: Friday, 9/19, 12noon-1pm 491 Van Hise
- Classes cancelled on 9/29, 10/1 <
- Midterm 1, 10/8 (Wed)
- Midterm 2, 11/12 (Wed)
- Term paper, Monday, 12/15.
Downloadable Course Materials
Trade Issues (lecture of 9/3).
Problem Set 1 (due in lecture 9/24).
Notes on Heckscher-Ohlin Theory (due in lecture 9/24).
Practice Problems on the Ricardian Model
More on Trade and Inequality
Problem Set 1 Answers (corrected 9/26).
Fall 2007 Midterm 1
Midterm 1 Answers
Midterm 1 Statistics/Curve
Key Graphs for Intra-industry Trade/Monopolistic Competition [powerpoint slides]
Problem Set 2 (due in lecture 10/27).
Key Graphs for Trade Policy [powerpoint slides]
Key Graphs for Trade Policy under Imperfect Competition/Dumping [powerpoint slides]
Problem Set 2 Answers (due in lecture 10/27).
Problem Set 3 (due in lecture 11/5 for extra credit, on 11/10 for regular credit).
Fall 2006 Midterm 2 (for practice)
Key Graphs for Strategic Trade Policy and Immigration [powerpoint slides]
Problem Set 3 Answers (due in lecture 11/5).
Midterm 2 Answers
Midterm 2 Statistics/Curve
Term Paper Assignment
Key Graphs for FDI, TRIPS, GATS, TRIMs [powerpoint slides]
Problem Set 4 (due in lecture 12/8).
Key Graphs for Agricultural Subsidies
Notes on Trade and the Environment
Problem Set 4 Answers (due in lecture 12/8).
- Fmn Thomas L. Friedman, "It's a Flat World, After All," NY Times Magazine, April 3, 2005.
- Lmr E. Leamer,"Review of the T. Friedman's The World Is Flat," forthcoming, Journal of Economic Literature.
- Cr1 M. Crowley, 2003, “An introduction to the WTO and GATT,” Economic Perspectives 2003Q4.
- Cr2 M. Crowley, 2004, “The worldwide spread of antidumping protection,” Chicago Fed Letter No. 198.
- CBO CBO, 2003, “The pros and cons of pursuing free-trade agreements,” Economic and budget issue brief, July 31, 2003.
- BJS Bernard, Jensen and Schott, 2004, “Facing the Dragon: Prospects for U.S. Manufacturers in the Coming Decade,” mimeo, May 2004.
- CRS CRS, "Foreign Direct Investment: Current Issues," RL33984 (April 4, 2004).
- FH Feenstra and Hanson, "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," June 2001, forthcoming in Kwan Choi and James Harrigan, eds., Handbook of International Trade, Basil Blackwell.
- IMF Rumbaugh and Blancher, 2004, “China: International Trade and WTO Accession,” IMF Working Paper WP/04/36.
- CT Copeland and Taylor, 2003, “Trade, Growth and the Environment,” forthcoming Journal of Economic Literature.
- "After Doha," Economist, Sep. 4, 2008.
- "Doha round: The saga that became a never-ending story," Financial Times, Oct. 9, 2008.
- "Beyond Doha," Economist, October 9, 2008.
- Edwin Vermulst, "Section 3.6: Anti-dumping," Dispute Settlement (UNCTAD: New York and Geneva, 2003).
- Countervailing and Anti-dumping duty orders in place as of 1/2008, by country.
- Countervailing and Anti-dumping duty orders in place as of 1/2008, by date.
- WTO webpage on Antidumping, Countervailing Duties, and Safeguards.
- WTO webpage on Regional Trade Agreements
- WTO webpage on TRIPS
- WTO webpage on GATS
- Alan P. Larson and David M. Marchick, Foreign Investment and National Security: Getting the Balance Right (Council on Foreign Relations, July 2006)
- WTO page on TRIMs.
- UNCTAD page on Bilateral Investment Treaties
- Mary Amiti and Shang-Jin Wei, "Demystifying Outsourcing," Finance and Development (IMF/World Bank, Dec. 2004)
- Mary Amiti and Shang-Jin Wei, "Fear of Service Outsourcing: Is It Justified?," NBER Working Paper No. 10808
- Mankiw and Swagel, "The Politics and Economics of Offshore Outsourcing," paper presented at Carnegie-Rochester conference, November 18, 2005.
- Catherine Mann, "Globalization of IT Services and White Collar Jobs: The Next Wave of Productivity Growth," Policy Brief 03-11.
- CBO, "Policies That Distort World Agricultural Trade: Prevalence and Magnitude," CBO Paper, August 2005.
- CBO, "The Effects of Liberalizing World Agricultural Trade: A Survey," CBO Paper, December 2005.
- Wayne Morrison, "China-U.S. Trade Issues," CRS Report for Congress RL33536 (October 7, 2008).
- Robert Feenstra and Shang-Jin Wei (Editors), China's Growing Role in World Trade forthcoming U.Chicago Press.
- What world leaders should do to halt the spread of protectionism, Edited by Richard Baldwin and Simon J. Evenett, CEPR (4 Dec 2008).
- Kym Anderson and Ernesto Valenzuela, "Do Global Trade Distortions Still Harm Developing Country Farmers?" World Bank Working Paper No. 3901 (April 2006).
Economics and Economic Policy Links
U.S. Government Agencies
Current and Historical Data
- World Bank Trade Data page
- International Trade Data page set up by Jon Haveman
- White House Economic Briefing Room Contains
current economic data.
- Bureau of Economic Analysis, Dept. of Commerce Data on GDP components as well as trade and FDI flows
- Bureau of the Census, Dept. of Commerce Data on the characteristics
of the US population as well as of US firms.
- Bureau of Labor Statistics, Dept. of Labor Data on
wages, prices (including imported goods), productivity in the US and abroad, and employment and unemployment rates.
- Statistical Abstract of the US
A compilation of statistics about the US, from government and nongovernment sources.
- Economic Report of the President, various years. The back portion of
this annual publication contains about 70 tables of government economic data.
- St. Louis Fed economic database Thousands
of time series on economic activity, in an easily downloadable form.
- Economic Time Series page A large collection of economic time series.
- NBER Data Specialized economic databases, including trade related, created by
economists associated with the National Bureau of Economic Research.
- BEA detailed data on services Useful link for US data on offshore outsourcing.
- Penn World Tables Annual GDP and other data for over a hundred countries, expressed
in dollars, after adjusting for differing price levels.
PA856 Trade, Competition and Governance in the Global Economy/ UW Madison / firstname.lastname@example.org / 9 December 2008