University of Roma Tre - Phd Program in Economics

University of Roma Tre - PhD Program in Economics

International Trade Lectures 2015 October 26-27-28, 2015

The Gravity model in international trade: theory, empirical evidence and applications Syllabus

Day 1 : Theory (Luca De Benedictis – Università di Macerata) Introduction to the International Trade Lectures 2015 A brief history of gravity The theory of gravity equation Frontiers of gravity research

References: 1. Anderson, J.E., (2011) The Gravity Model, Annual Review of Economics, Vol. 3, pp. 133-160. 2. Anderson J.E. and van Wincoop E. (2003), “Gravity with Gravitas: A Solution to the Border Puzzle”, American Economic Review, 93(1), 170-192. 3. Baldwin, R., Taglioni, D., (2007), Trade effects of the euro: A comparison of estimators. Journal of Economic Integration 22 (4), 780–818. 4. De Benedictis L. and D.Taglioni (2011), “The Gravity model in international trade”, in L.De Benedictis and L.Salvatici (ed.), The Trade Impact of European Union Preferential Policies. An Analysis Through Gravity Models, Springer. 5. Head, K. and T. Mayer ( 2014), “Gravity Equations: Workhorse, Toolkit, and Cookbook" chapter 3 in Gopinath, G, E. Helpman and K. Rogo_ (eds), vol. 4 of the Handbook of International Economics, Elsevier: 131-195. https://sites.google.com/site/thierrymayer/files/gravityHB_web.pdf

Day 2: Preferential trade policies (Luca Salvatici – Università Roma Tre e Centro Rossi- Doria) The impact of regional trade agreements: a meta-analysis of the literature The impact of EU preferential policies

References: 1. Cipollina, M., Salvatici, L., (2010), Reciprocal Trade Agreements in Gravity Models: A Meta-Analysis. Review of International Economics 18 (1), 63–80. 2. Cipollina, Maria; Laborde Debucquet, David; Salvatici, Luca. 2014. The tide that does not raise all boats: An assessment of EU preferential trade policies. Discussion Paper 1382. Washington, D.C.: International Food Policy Research Institute (IFPRI). http://ebrary.ifpri.org/cdm/ref/collection/p15738coll2/id/128469

1 Day 3: Impact of multilateral trading system on trade (Silvia Nenci – Università Roma Tre) The effect of GATT/WTO on trade: an “interesting mystery” Multiple econometric specifications of the gravity equation & historical data

References: 1. Chang, P.L., Lee, M.J. 2011. The WTO trade effect. Journal of International Economics, 85, 53-71 2. Dutt, P. Mihov, I., Van Zandt, T. 2013. The effect of WTO on the extensive and the intensive margins of trade. Journal of International Economics, 91, 2, 204–219 . 3. Liu, X., 2009. GATT/WTO promotes trade strongly. Sample selection and model specification. Review of International Economics, 17, 428-46. 4. Nenci, S. 2011. Tariff liberalization and the growth of world trade: a comparative historical analysis to evaluate the multilateral trading system, in The World Economy, n. 34, pp.1809–1835; 5. Rose A. K. 2004. Do We Really Know that the WTO Increases Trade?, The American Economic Review, 94, 1, 98-147. 6. Subramanian, A., Wei, S-W., 2007. The WTO promotes trade, strongly but unevenly. Journal of International Economics 72, 151-175. 7. Tomz, M., Goldstein, J. L., Rivers, D. 2007. Do we really know that the WTO increases trade? Comment. American Economic Review 97, 2005-2018.

The course will be organized into 3 days. It will be divided into several modules. In each module, the training will cover theoretical and empirical areas in that literature, apply that learning by replicating gravity estimations drawn from published papers. Venue: Scuola di Economia e Studi aziendali (via Silvio D’Amico 77, Rome)

Schedule:

Day Location Time

Monday, October 26 Room 12 9:30 – 13:00 Room Lab Room B 14:00 – 17:00

Tuesday, October 27 Room 12 9:30 – 13:00 Room 13A/ Lab Room B 14:00 – 17:00

Wednesday, October 28 Room12 10:00 – 13:00 Room 13A/ Lab Room B 14:00 – 17:00