This course will be concerned with recent research on the influence of international trade on economic growth. Class meets Monday and Wednesday, 10:30-11:50, in SS401. Friday, 10:30-11:50 will also be reserved for make-up classes, student presentations, and occasional other uses. My office hours are Wednesday, 1:30 - 3, or by arrangement.
The course will serve as partial preparation for the Economic Growth prelim offered in Summer, 2004. Students who want to receive a grade other than R must hand in a research paper related to the course. There will be no exams or graded problems.
Acceptable papers include, but are not limited to
- a rigorous exposition of a paper on the reading list, or one that you think should be on the reading list,
- analysis of a generalization, modification, or combination of paper(s) on or near to the reading list,
- a successful algorithm for solving an already existing model numerically, used to develop the model's properties or its relation to evidence or both.
Of course, a completely original contribution to the theory of trade and growth
is fine, too. But using an interesting, existing paper as a point of departure
can be a good way to get started.
Anyone who intends to present a paper for a grade should discuss his plans with
me by the end of January.
There is no assigned textbook, but some of my papers on economic growth are collected in
Robert E. Lucas, Jr. Lectures on Economic Growth. Cambridge: Harvard University Press. 2002.
There is also much useful material in
Stephen L. Parente and Edward C. Prescott. Barriers to Riches. Cambridge: MIT Press. 2000.
and
Robert J. Barro and Xavier Sala-i-Martin. Economic Growth. Cambridge: MIT Press. Second edition. 2003.
Other readings are listed below. An asterisk (*) indicates that a hard copy is available for xeroxing from Shirley Ogrodowski, SS 409. Links to individual web sites are provided for some papers. All other papers can be found at the web sites for Jstor or the NBER or at Regenstein Library..
Robert E. Lucas, Jr. "On the Mechanics of Economic Development"
Journal of Monetary Economics, 22 (1998): 3-42 (Chapter 1 in Lucas (2002)).
Jordi Caballe and Manuel S. Santos. "On Endogenous Growth with Physical
and Human Capital." Journal of Political Economy, 101 (1993): 1042-1067.
Paul M. Romer. "Endogenous Technological Change." Journal of Political Economy, 98 (1990): S71-S102.
Rudiger Dornbusch, Stanley Fischer, and Paul A. Samuelson. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods." American Economic Review, 67 (1977): 823-839.
Charles A. Wilson. "On the General Structure of Ricardian Models with a Continuum of Goods." Econometrica, 48 (1980): 1675-1702.
Marianne Baxter. "Fiscal Policy, Specialization, and Trade in the Two-Sector Model: The Return of Ricardo?" Journal of Political Economy, 100 (1992): 713-744.
Jonathan Eaton and Samuel Kortum. "Technology, Geography, and Trade." Econometrica, 70 (2002): 1741-1780. http://econ.bu.edu/kortum//
*Robert E. Lucas, Jr. "Some Implications of the Eaton-Kortum Model of International Trade." University of Chicago and Federal Reserve Bank of Minneapolis working paper, 2003.
Robert E. Lucas, Jr. "Why Doesn't Capital Flow from Rich to Poor Countries?" American Economic Review, 80 (1990): 92-96. (Chapter 2 in Lucas (2002))
Robert G. King and Sergio T. Rebelo. "Transitional Dynamics and Economic Growth in the Neoclassical Model." American Economic Review, 83 (1993): 908-931.
*Jordan Rappaport. "Convex Adjustment Costs, Complementary Capital, and Neoclassical Transition Dynamics." Federal Reserve Bank of Kansas City working paper, 2001.
Nancy L. Stokey. "Free Trade, Factor Returns, and Factor Accumulation." Journal of Economic Growth, 1 (1996): 421-447.
Martin Feldstein and Charles Horioka.. "Domestic Saving and International Capital Flows." Economic Journal, 90 (1980): 314-329.
Jonathan Eaton and Samuel Kortum. "Engines of Growth: Domestic and Foreign Sources of Innovation." NBER working paper #5207, 1995.
Jonathan Eaton and Samuel Kortum. "International Technology Diffusion: Theory and Measurement." International Economic Review, 40 (1999): 537-570.
*Alejandro M. Rodriguez. "Learning Externalities and Economic Growth." University of Chicago working paper, 2002.
Robert E. Lucas, Jr. "Making a Miracle." Econometrica, 61 (1993): 251-272. (Chapter 3 in Lucas (2002).
Kiminori Matsuyama. "Agricultural Productivity, Comparative Advantage and Economic Growth." Journal of Economic Theory, 58 (1992): 317-334.
Stokey, Nancy L. "The Volume and Composition of Trade Between Rich and Poor Countries." Review of Economic Studies, 58 (1991): 63-80.
Stokey, Nancy L. "Learning by Doing and the Introduction of New Goods." Journal of Political Economy, 96 (1988): 701-717.
Young, Alwyn. "Learning by Doing and the Dynamic Effects of International Trade." Quarterly Journal of Economics, 106 (1991): 369-406.
G Grossman, Gene M., and Elhanan Helpman. "Quality Ladders and Product Cycles." Quarterly Journal of Economics, 106 (1991): 617-650.
Raphael Bergoeing and Timothy J. Kehoe. "Trade Theory and Trade Facts." Federal Reserve Bank of Minneapolis Staff Report. 2003. http://www.econ.umn.edu/~tkehoe/research.html
*Kei Mu Yi. "Can Vertical Specialization Explain the Growth of World Trade?" Journal of Political Economy, 111 (2003): 52-102.
Jeffrey D. Sachs and Andrew Warner. "Economic Reform and the Process of Global Integration." Brookings Papers on Economic Activity, (1995): 1-118.
Romain Wacziarg and Karen Horn Welch. "Trade Liberalization and Growth: New Evidence." NBER working paper #10152. 2003.
Dan Ben-David. "Equalizing Exchange: Trade Liberalization and Income Convergence." Quarterly Journal of Economics, 106 (1993): 617-650.
Jeremy Greenwood, Zvi Hercowitz, and Per Krusell. "Long-Run Implications of Investment-Specific Technological Change." American Economic Review, 87 (1997): 342-362.
Martin Neil Baily; Charles Hulten, and David Campbell. "Productivity Dynamics in Manufacturing Plants." Brookings Papers on Economic Activity. Microeconomics. 1992 (1992): 187-267.
Chad Syverson. "Market Structure and Productivity: A Concrete Example." University of Chicago working paper, 2003. http://home.uchicago.edu/~syverson/
Marc J. Melitz. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity." Econometrica, 71 (2003): 1695-1725. http://post.economics.harvard.edu/faculty/melitz/papers.html
Andrew B. Bernard, Jonathan Eaton, J. Bradford Jensen, and Samuel Kortum. "Plants and Productivity in International Trade." NBER working paper #7688, 2003.
Pol Antras and Elhanan Helpman. "Global Sourcing." Harvard University
working paper, 2003.
http://post.economics.harvard.edu/faculty/antras/papers.html