Gravity in International Trade 2400-ENSM103B
The seminar mainly concerns the analysis of phenomena occurring in foreign trade using the gravity model (as the main tool). This model (in its simplest version) is discussed in classes on the Theory of International Exchange. The seminar will attempt to address current issues present in foreign trade, particularly using linear gravity models.
We invite all those who want to explore the specifics of one of the most frequently used analytical tools designed to test hypotheses of foreign trade. Your idea for research is very welcome. The frequency of meetings will be agreed with the interested party (depending on individual needs). The seminar should end with the student preparing a master's thesis, which - after introducing (any) agreed corrections - can be submitted to the dean's office. Topics
1. Testing basic gravity relationships in trade (i.e. distance, GDP of trading countries, cultural proximity, etc.)
2. Checking the impact of membership in regional integration groups
3. Using a gravity model for data on the international activity of companies.
4. Possibility of using panel models and comparison with regression estimated using OLS methods
5. Independent calculation of individual effects using linear regression
6. FDI flows in the context of gravity models of trade
7. Impacts of trade policy on the value of foreign trade between pairs of countries.
Type of course
Course coordinators
Learning outcomes
A) Knowledge
1. The student knows the basics of gravity models used in foreign trade analysis.
2. The student is familiar with the latest (and classical) literature on the issues of gravity models.
3. The student is familiar with theoretical trade models from which a gravity model can be derived.
B) Skills
1. The student can analyze econometrics to verify the research hypothesis.
2. The student can analyze data using basic statistical and econometric tools.
3. The student can analyze selected texts from Polish and English-language journals in the field of international economics;
4. The student is able to conduct empirical research (statistical or econometric) independently
5. The student can formulate research hypotheses and verify them
6. The student can develop the structure of the work and research independently
7. The student can formulate partial and synthetic conclusions from the conducted analysis
C) Social competences
1. The student knows the need to supplement and improve knowledge and skills.
2. The student is able to present data in tables and graphs in a communicative way.
3. The student is prepared to expand his/her knowledge independently.
KW01, KW02, KW03, KU01, KU02, KW03, KK01, KK02, KK03
Assessment criteria
The assessment is based on the progress in preparing the master's thesis.
The assessment is based on the quality of the seminar participants' presentations in the third semester. Participants prepare papers presenting theoretical and empirical articles related to the proposed thesis topics during this period. Presenting a preliminary concept of the thesis and indicating the main methodological and empirical problems that need to be solved is a condition for passing the third semester.
In the fourth semester of the master's studies, the fragments of the master's thesis that have already been written are discussed and analyzed. The progress in empirical research and the development of theoretical or institutional pieces of the thesis are assessed. The progress in these works and the quality of the presented fragments are the basis for assessing the assessment, and the entire dissertation is the basis for the final evaluation by the supervisor.
Bibliography
1. R.C. Feenstra, Advanced international trade, Princeton University Press, 2016 (chapters 5 and 6)
2. Head, Keith, and Thierry Mayer. "Gravity equations: Workhorse, toolkit, and cookbook." Handbook of international economics. Vol. 4. Elsevier, 2014. 131-195.
3. Anderson, James E., Mario Larch, and Yoto V. Yotov. "GEPPML: General equilibrium analysis with PPML." The World Economy 41.10 (2018): 2750-2782.
4. Weidner, Martin, and Thomas Zylkin. "Bias and consistency in three-way gravity models." Journal of International Economics 132 (2021): 103513.Baier, Scott, and Samuel Standaert. "Gravity models and empirical trade." Oxford Research Encyclopedia of Economics and Finance. 2020.
5. Yotov, Yoto V., Roberta Piermartini, and Mario Larch. An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model. WTO iLibrary, 2016.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: