Kenneth A. Reinert
Phone: 703-993-8212
Email: kreinert@gmu.edu
Office:
Arlington Original Building, Room 262
Website:
http://mason.gmu.edu/~kreinert
Office hours: Monday 6-7
Course Description
This course addresses
international
trade theory, trade policy analysis, regional economic
integration, and the
institutional
arrangements governing world trade. It covers the World Trade
Organization (including its
constituent agreements in the areas of goods, services, intellectual
property and trade-related
investment measures), regional trade agreements such as NAFTA,
dispute settlement
regimes,
and the relations between trade and the environment.
Please note: The
first half of this course in trade theory is intensive in graphical
analysis
and requires
familiarity with partial derivates and total differentiation.
Main Texts
Hoekman, B. and M.
Kostecki,
The
Political Economy of the World Trading System,
Oxford University Press, 2001.
Markusen, J.R., J.R.
Melvin,
W.H. Kaempfer, and K.E. Maskus, International Trade:
Theory and Evidence,
McGraw-Hill, 1995. Note: this excellent text is out of print.
We will be accessing it via Jim
Markusen's web-site.
Reinert, K.A., Analyzing Trade.
Books on Reserve
Barton, J.H., J.L.
Goldstein, T.E. Josling and R.H Steinberg, The Evolution of the
Trade Regime: Politics, Law, and Economics of the
GATT and the WTO,
Princeton University Press, 2006.
Francois, J.F. and K.A.
Reinert
(eds.), Applied Methods for Trade Policy Analysis:
A Handbook, Cambridge
University Press, 1997.
Helpman, E. and P.R.
Krugman,
Trade
Policy and Market Structure, MIT Press,
1989.
Hoekman, B., A. Mattoo, and
P. English (eds.), Development,
Trade, and the WTO:
A Handbook,
The World Bank, 2002.
Martin, W. and L.A. Winters
(eds.), The Uruguay Round and the Developing Countries,
Cambridge University Press,
1996.
Other Useful
Books
Bagwell, K.
and R.W. Staiger, The Economics of
the World Trading System,
MIT Press, 2002.
Bhagwati, J., A.
Panagariya,
and T.N. Srinivasan, Lectures on International Trade, MIT
Press, 1998.
Caves,
R.E., Multinational Enterprised and
Economic Analysis, Cambridge University
Press, 1996.
Corden, W.M., Trade
Policy
and Economic Welfare, Oxford University Press, 1997.
Feenstra, R.C., Advanced International Trade: Theory and
Evidence, Princeton
University Press, 2004.
Hertel, T.W. (ed.) Global
Trade Analysis: Modeling and Applications, Cambridge,
University Press, 1997.
International Centre for
Trade and Sustainable Development,
Doha Round Briefing Series.
van Marrewijk, C., International
Trade and the World Economy, Oxford University
Press, 2002.
Vousden, N., The
Economics
of Trade Protection, Cambridge University Press,
1990.
Interntional Trade
Journal-
at Arlington campus library
Journal of International
Economic Law- at Law School library
Journal of World Trade-
at Arlington campus library
World Trade Review-
at Arlington campus library
Course
Requirements and Grading
For Ph.D. students:
Problem sets- 10
percent
Midterm exam- 25 percent
Final exam- 25 percent
Draft Journal Article- 20
percent
Class participation- 20 percent
For Masters students:
Problem Sets- 15 percent
Midterm exam- 30 percent
Final exam- 35 percent
Class participation- 20 percent
Course Outline and Readings
Microeconomics of Closed and Open Economies (22 January, 29 January)
Markusen et al., Chapters 2, 3, 4, 5, and 6.
See also: T.M. Humphrey, "The
Early History of the Box Diagram," Federal Reserve
Bank of Richmond
Economic Quarterly,
82:1, 1996, 37-75; and K.A. Reinert,
"Outcomes
Assessment in Trade Policy Analysis," Journal of Economic Issues, 38:4,
2004, 1067-1073.
Ricardian Model (5 February) Problem Set #1
Markusen et al., Chapter 7.
See also: Bhagwati,
Panagariya,
and Srinivasan, Chapters 2 through 4; G.M. Grossman and
E. Helpman,
"Technology and
Trade,"
in G. Grossman and K. Rogoff (eds.), Handbook of
International Economics,
Volume III, Elsevier, Amsterdam, 1995, 1279-1337.
Heckscher-Ohlin Model (12 February)
Markusen et al., Chapter 8.
Reinert, K.A. and K.W.
Roland-Holst,
“North-South Trade and Occupational Wages:
Some Evidence from
North America,”
Review
of International Economics, 6:1, February
1998, 74-89. Available
through e-journals.
See also: Bhagwati, Panagariya, and Srinivasan, Chapters 5, 6, and 8.
Specific Factors Model (19 February) Problem Set #2, Problem Set #1 Due
Markusen et al., Chapter 9.
Neary, J.P., “Short-Run
Capital
Specificity and the Pure Theory of International Trade,”
Economic Journal,
88:351,
September 1978, 488-510. Available through JSTOR.
See also: Bhagwati, Panagariya, and Srinivasan, Chapter 7.
New Trade Theory: Increasing Returns to Scale and Imperfect Competition (26 February)
Markusen et al., Chapters 11 and 12.
Krugman, P., "Scale
Economies,
Product Differentiation, and the Pattern of Trade," American
Economic Review, 70:5,
December 1980, 950-959. Available through JSTOR.
Ruffin, R.J., "The
Nature and Significance of Intra-Industry Trade," Federal Reserve
Bank
of Dallas Economic
and Financial Review, 1999.
See also: Bhagwati,
Panagariya,
and Srinivasan, Chapters 11 and 30; P. Krugman, "Talking
About a Revolution: How the
Late Kevin Lancaster Helped Transform Economics," under
Economic Theory
at The
Unofficial Paul Krugman Archive (you will need to scroll down);
and Chapter 10 of van
Marrewijk (2002, see useful books above).
Note: Due to time
limitations,
we will not cover oligopolistic
theories in this section of the
class. If you have an interest in this, I can
provide you with R.J. Ruffin "Oligopoly Models,"
in K.A. Reinert, R.S. Rajan, A.J. Glass, and L.S.
Davis (eds.), Princeton Encyclopedia
of
the World Economy, Princeton University
Press, 2008.
Markusen et al., Chapters 15 and 16.
Laird, S., "Quantifying
Commercial
Policies," Chapter 2 of J.F. Francois and K.A. Reinert (eds.),
Applied Methods for Trade
Policy Analysis: A Handbook, Cambridge University Press,
Cambridge, 1997, 27-75. On
electronic reserve.
Helpman, E. and P.R.
Krugman,
"Trade Policy under Perfect Competition," Chapter 2 of Trade
Policy and Market Structure,
MIT Press, Cambridge, 1989, 11-25. On electronic reserve.
Reinert, K.A., "Gravity
Models," in K.A. Reinert, R.S.
Rajan, A.J. Glass, and L.S. Davis (eds.),
Princeton Encyclopedia of the World Economy,
Princeton University Press, 2008.
See also: K.A. Reinert, "Implementing
a Simple, General Equilibrium Model in GAMS,"
unpublished paper, 2001; K. Anderson, "Measuring the
Effects of Trade Policy Distortions:
How Far Have We Come?" The World Economy, 26:4, 2003,
413-440.
Midterm (19 March)
GATT and WTO (26 March) Problem Set #3
Hoekman and Kostecki, Chapters 1, 2, 4, and 5.
VanGrasstek, C. and P.
Sauve, "The Consistency of WTO Rules: Can the Single Undertaking
Be Squared with Variable Geometry," Journal of International Economic Law,
9:4, 837-
864. Available through e-journals.
Francois, J., H. van Meijl,
and F. von Tongeren, "Trade Liberalization in the Doha Development
Round," Economic
Policy, 20:42, 349-391. Available through e-journals.
See also: Marlikar, A. and D. Tussie,
"The G20 at the Cancun Ministerial: Developing Countries
and Their Evolving Coalitions in the WTO," World Economy, 27:7, 947-966.
Available through
e-journals.
Regional Trade Agreements (2 April)
Markusen et al., Chapter 18.
Hoekman and Kostecki, Chapter 10.
Limao, N., "Preverential
vs. Multilateral Trade Liberalization: Evidence and Open Questions,"
World Trade Review,
5:2, 155-176. Available through e-journals.
Harrison, G.E., T.F.
Rutherford, and D.G. Tarr, "Rules of Thumb for Evaluating Preferential
Trading Arrangements: Evidence from CGE
Assessments," Cuadernos de Economia, 40:121,
2003. Available online. Note Spanish/English switch
in upper right-hand corner of home page.
See also: J. de Melo and A.
Panagariya (eds.), New Dimensions in Regional Integration,
Cambridge University Press,
Cambridge, 1993; J.A. Frankel, Regional Trading Blocs in the World
Economic System,
Institute
for International Economics, Washington, DC, 1997; J. Serra et al.,
Reflections on Regionalism,
Carnegie Endowment for International Peace, Washington, DC, 1997;
Hudec, R.E. and J.D.
Southwick,
“Regionalism and WTO Rules: Problems in the Fine Art of
Discriminating Fairly,” in
M. Rodríguez Mendoza, P. Low, and B. Kotschwar (eds.), Trade
Rules
in the Making:
Challenges
in Regional and Multilateral Negotiations, The Brookings
Institution, Washington, DC,
1999, 47-80.
Agriculture, Textiles and Clothing (9 April) Problem Set #3 Due
Hoekman and Kostecki,
Chapter
6, Sections 1 and 2.
Anderson, K., W. Martin,
and D. van der Mensbrugghe, "Doha Merchandise Trade Reform:
What is at Stake for Developing Countries?" World Bank Economic Review, 20:2,
2006,
169-195. Available through e-journals.
Hathaway, D. and M.D. Inco,
"Agricultural Liberalization in the Uruguay Round," in W. Martin and
L.A. Winters (eds.), The
Uruguay Round and the Developing Countries, Cambridge University
Press, Cambridge, 1996, 30-58.
On electronic reserve.
Primo Braga, C.A., "Agricultural
Negotiations: Recent Developments in the Doha Round," World
Bank Trade Note 19, 2004.
International Centre for
Trade and Sustainable Development, Doha
Round Briefing Series:
Agriculture,
Novermber 2005. See link above under "Other Useful
Books."
Nordås, H.K.,
The Global Textile
and Clothing Industry Post the Agreement on Textiles and Clothing,
World Trade Organization Discussion Paper 5, Geneva,
2004.
See also: Kim, S.J. and K.A. Reinert,
"Textile
and Clothing Safeguards: From the ATC to the Future."
Hoekman and Kostecki, Chapter 7.
Adlung, R., "The
GAT Turns Ten: A Preliminary Stocktaking," Staff Working
Paper ERSD-2004-05, World Trade Organization.
Mattoo, A., "Developing
Countries
in the New Round of GATS Negotiations: Toward a Pro-
Active Role," The World
Economy, 23:4, April 2000, 471-489. Available through e-journals.
Winters, L.A. et al.,
"Liberalising the Temporary Movement of Natural Persons: An Agenda
for the Development Round," The World Economy, 26:8, 1137-1161.
Available through
e-journals.
See also: P. Sauvé,
and R.M. Stern (eds.), GATS 2000: New Directions in Services Trade
Liberalization,
Brookings
Institution, Washington, DC, 2000.
TRIPS (16 April)
Hoekman and Kostecki, Chapter 8.
Maskus, K.E., "The
International Regulation of Intellectual Property," Weltwirtschaftliches
Archiv, 134:2, 1998,
186-208.
Watal, J., "Implementing the TRIPS Agreement," Chapter
35 of B. Hoekman, A. Mattoo, and
P. English (eds.), Development,
Trade, and the WTO: A Handbook, The World Bank,
Washington, DC, 2002, 359-368. On
reserve.
See also: Dutfield, G.,
"Introduction,"
in C. Bellmann, G. Dutfield, and R. Meléndez-Ortiz (eds.),
Trading in Knowledge:
Development
Perspectives on TRIPS, Trade and Sustainability,
Earthscan, London, 2003, 1-20;
and Intellectual Property Rights
Online.
Investment (23 April)
Sauve, P., "Multilateral
Ruses on Investment: Is Forward Movement Possible?" Journal of
International Economic Law, 9:2, 325-355.
Available through e-journals.
Hoekman, B. and K. Saggi,
"Assessing
the Case for Extending WTO Disciplines on Investment-
Related Policies," Journal
of Economic Integration, 15:4, 2000, 629-653. On electronic
reserve.
See also: Low, P. and A.
Subramanian,
"Beyond TRIMs: A Case for Multilateral Action on
Investment Rules and
Competition
Policy?" in W. Martin and L.A. Winters (eds.), The Uruguay
Round and the Developing
Countries, Cambridge University Press, Cambridge, 1996, 380-408.
Dispute Settlement (23 April)
Hoekman and Kostecki,
Chapter
3.
Barton, J.H., J.L.
Goldstein, T.E. Josling and R.H Steinberg, "The Politics of the
GATT/WTO Legal System:
Legislative and Judicial Processes," Chapter 3 of The Evolution
of the Trade Regime: Politics, Law, and Economics of
the GATT and the WTO, Princeton
University Press, 2006. Book on reserve.
Davey, W.J., "The WTO
Dispute
Settlement System," Journal of International Economic Law,
3:1, 2000, 15-18.
Available online
through e-journals.
Hoekman, B.M. and P.
Mavroidis,
"WTO Dispute Settlement, Transparency and Surveillance,"
The World
Economy, 23:4,
2000, 527-542. Available through e-journals.
Labor and the Environment (23 April)
Hoekman and Kostecki, Chapter 13.
Tay, S., "Trade and Labor: Text, Institutions, and
Context," Chapter 45 of B. Hoekman, B.,
A.
Mattoo, and P. English (eds.), Development, Trade, and the WTO: A
Handbook, The World
Bank, Washington, DC, 2002, 463-471. On
reserve.
Jha, V., "Environmental
Regulations and the WTO," Chapter 46 of B.
Hoekman, B., A. Mattoo,
and P. English (eds.), Development, Trade, and the WTO: A
Handbook, The World Bank,
Washington, DC, 2002, 472-481. On
reserve.
See also:
Anderson, K. (1992) “The
Standard Welfare Economics of Policies Affecting Trade
and the Environment,” in
K. Anderson and R. Blackhurst (eds.), The
Greening of World Trade
Issues,
Harvester Wheatsheaf, Now York, 25-48.
Review of
Course (30 April)
Final Exam (7 May)
Draft Journal Article for Ph.D. Students
One requirement for
the course is for you to write a draft journal article on a
narrowly-defined
topic
related to your area of
interest.
The journal I have in mind is The World Economy, available at
the
Law School library. The Notes
to Contributors of this journal states: "The World Economy
concentrates on trade policy
issues both on a country basis, regionally... , and globally.... The
World
Economy does, however,
also cover broader isses (exchange rates, IMF/World Bank, debt,
environmental or other
international
issues) as the relate to trade. Papers published in The World
Economy are in the
main verbal in presentation, with occasional data tables."
The web site for The World Economy can be accessed through e-journals.
A working title and
one-page
(minimum) description of the topic are due no later than 5 March.
Papers are due by 4 May.
In this and other
research/writing
projects, it is always helpful to consult W.C. Booth, G.G. Colomb,
and J.M. Williams, The
Craft of Research, University of Chicago Press, Chicago, 2003.
Plagiarism
From the School of Public Policy:
"All work must be
your
own. Inappropriate use of the work of others without attribution is
plagiarism and a George Mason
University Honor Code violation punishable by expulsion from the
University. All students
should
familiarize themselves with this Honor
Code provision. To guard
against plagiarism and to
treat students equitably, written work may be checked against existing
published materials or digital
databases available through various plagiarism detectionservices.
Accordingly, materials
submitted
to all course must be available in electrionic format."
Please see my link on plagiarism.
All papers will be screened by Turn
It
In.
Any student who
plagiarizes
a part of the draft journal article will fail the course.
Links
Global Trade Negotiations Home Page
Intellectual Property Rights and
Sustainable Development
International Centre for Trade and Sustainable Development