Seminar Topics in International Economics

Description

Practical information Course ID: FEB13088 Credits: 12 EC Instruction language: English Registration procedure: Information on the application procedure can be found on this website Secretariat: Support Office Economics, E1-28, 010-4081441, office.ec@ese.eur.nl Course description Content: This seminar addresses key questions in International Economics: - Why do only a few firms export? How are they different than other firms? - What is the role of intermediaries in facilitating trade? - What is the impact of trade policy shocks on different firms? - Does international economic integration promote economic growth? - How does international economic integration affect inequality? - Why do countries have current account surpluses/deficits, and to which extent are such imbalances problematic? The first part of this seminar will take a firm-level approach to the study of international trade. To have a firm grasp in understanding the empirics, we will start off with the “new” trade theory of international trade, its extension with heterogeneous firms, and the related gravity model of trade. We will then focus on the empirical research on heterogeneous firms and trade by studying and discussing frontier academic papers. The topics covered will include: self-selection into exporting, learning by exporting, intermediaries in trade, and the impact of trade policy shocks on different firms. The second part of this seminar provides an introduction to international macroeconomics. To assess how international trade, capital flows and migration affect economic growth and income inequality students will familiarize themselves with the neoclassical open economy growth model. To analyze trade surpluses and deficits the open economy AS-AD model will be introduced. In both cases, the model predictions will be compared with empirical findings uantitative empirical evidence, and historical case studies to explore the following questions: Learning goals: Familiarize yourself with key International Economics topics: - the role of firms in international trade - the impact of trade policy shocks on different firms - the effects of international market integration on economic growth and the income distribution - trade surpluses/deficits, external adjustments under different exchange rate regimes, and balance of payment crises Upon completion of this course, students will have learned key theories in International Economics and how they are empirically tested to answer policy-relevant questions. Changes as compared to previous year: This seminar was re-designed compared to last year. It now contains a firm-level approach to the study of international trade. It no longer covers the relationship between international economic integration and international relations. Extra: Attending the seminar implies no extra costs. Study materials All required literature is accessible online or will be provided through Canvas Entrance requirements Assumed previous knowledge: Bachelor-1 Economie en Bedrijfseconomie / IBEB, and Bachelor-2 Economie en Bedrijfseconomie / IBEB. BSc2 students: Year 1 and Year 2. Entrance requirements course enrolment: You must meet the following requirements Enrolled for one of the following degree programmes BSc2 Econometrics Economics and Business Economics International Bachelor Econometrics and Operations Research International Bachelor Economics and Business Economics Period Enrolment periods: Period of education: 2 maart 2026 until 25 april 2026 Assessment Assessment requirements: Passing grade is 5.5 Assessment materials: Content from the lecture session slides Assessments (result in OSIRIS): Test weight: 15 Assessment: Resit opportunity; Test weight: 15 Assessment: Resit opportunity; Test weight: 70 Assessment: Resit opportunity