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This course studies the determinants and effects of international trade and investment. We start with the classical models of trade theory, including the Ricardian theory of comparative advantage and the Heckscher Ohlin model. We then cover more modern trade models that incorporate economies of scale and imperfect competition. When presenting each theoretical model, we examine how they fare relative to the data, and contextualize them with specific empirical examples. In the last part of the course, we examine trade policy. We study the effects of different types of trade policies and ask what would be the optimal trade policies. Time permitting, we will also discuss the effects of the COVID-19 pandemic on international trade.

  • Completion method: contact teaching
  • Schedule: can be found in Sisu
  • Study materials: can be found in MyCourses
    • Tips for enrolling in a MyCourses course area can be found here

Please register for the course in the Aalto Sisu with your Aalto username, further instructions can be found here.

    • Code: 31E00500

    • Target groups: MSc / rMSc / PhD

    • Credit points: 6

    • Code: 2696
    • Target groups: MSc / rMSc / PhD
    • Credit points: 6
    • Credit transfer: apply for substitution in Sisu
    • Code: ECOM-430 (MSc) / DPE-9430 (PhD)
    • Target groups: MSc / rMSc / PhD
    • Credit points: 6
    • Credit transfer: apply for substitution in Sisu
    • Please contact your supervisor/program director to be sure that the course credit can be counted towards your degree
    • Credit transfer: please apply for credit transfer according to your home university's procedures

The course introduces the students to international trade theory and applied (empirical) trade economics at the level required for applied economists. It also provides a basic foundation of knowledge in international trade theory for more advanced PhD level courses.