The course does not presuppose an extensive background in economics and statistics. Students who have had an undergraduate course in internationals economic will find the course more accessible.

If necessary, some extra-sections of the class can be devoted to the revision of economic concepts and statistical measure and methodologies, so to make the data analysis as smooth as possible

The student will acquire the knowledge on the functioning of the international economic systems, international trade and international institutions and of the instruments of economic trade policy in the various geographical areas.

Knowledge is achieved through the teachings provided for in the study plan and also the methods of carrying out the same which can include lectures, class discussions, data analysis home works, and podcast listening.

Knowledge is verified every two/three weeks through intermediate assessments and through a final multiple choice test. The teaching activity takes place in a dynamic context, based on the

partnership between those who teach and those who learn, facilitate with the use of online instruments to capture the reaction of students on the spot. Luiss offers innovative and interactive teaching methods that teachers implement in line with the contents of the teachings. The active role of students is guaranteed not only in the learning process, but also in the assessment process, through self-assessment (questionnaires, home works), peer-assessment (class discussions) and assessment (final test simulation).

Ability to apply knowledge of international economic theory and policy through the discussion and quantitative evaluation of global problems. The skills are achieved through the teachings provided for in the study plan and also the methods of carrying out the same which can include

lectures, data analysis using the R Statistical language, home works. The assessment of skills takes place through four intermediate take-home assignments that will count 10%, 20%, 20%, 20% of the final mark and will be finally checked - in written form - through a end-of-the-course

test, counting 30% of the final mark.

The application of the knowledge acquired will be therefore assessed in class and through the intermediate assessments and the final test.

The course Firms and Trends in Global Markets will introduce students to the analysis of international trade, firms strategies in global markets and trade policy, through economic theory and data analysis. It will make it with a constant attention to events in the world economy: the emergence of China as a global actor, the weakness of the Euro-zone, the rising protectionism, the slowdown of international trade due to the lockdown measures against SARS Covid-19 and the recent war in Europe on international trade and on firms.

The course Firms and Trends in Global Markets is composed of two modules. Firms and Trends in Global Markets mod.b adds to Firms and Trends in Global Markets mod.a a section on the gravity model in international trade and migration and one section on the network analysis of global markets.

A special focus on Italy in the world economy will be a common factor to

all the material covered by the course.

Specifically:

(1) the student will acquire the necessary theoretical and data analysis skills to analyse fenomena in international markets.

(2) The course provides theoretical insights on foreign direct investments and offshoring practices.

(3) The student will be trained in the use of international data and on data analysis, gaining particular sensitivity towards issues related to firms’ internationalisation.

4) The course will form figures capable of carrying out economic analysis in companies operating in international markets. In this sense, it offers sector-focused skills, which refer to the organisational and business methods typical of these sectors, also useful in the characterisation of one's own curriculum.

The teaching material is based on several scientific papers more than on a single textbook.

In any case, here are some references.

Prerequisite:

[KOM] Paul Krugman, Maurice Obstfeld and Marc Melitz, International Economics, Pearson, New York, 2018, 11th edition.

Main reference:

[WTO/Unctad] A practical guide to trade policy analysis, 2013.

Further references:

[BK] Gábor Békés and Gábor Kézdi, Data Analysis for Business, Economics, and Policy, Cambridge University Press, 2021.

[C] Scott Cunningham (2021), Causal Inference - The Mixtape, Yale University Press.

For references to the papers see the week-by-week program. Papers signed with a (*) are compulsory (together with [KOM] and [WTO/Unctad]) for non attending students.

Week 1 - Introduction to the Course - Globalisation, regionalism and institutions .

and data analysis. Introduction to R

[KOM chapter 1]

[BK chapter 1 and 2]

[C introduction]

WTO, World Trade Statistical Review, 2021

Reading:

(*) Paul Krugman (1993), What Do Undergrads Need to Know About Trade? American Economic Review, 83(2), 23-26.

(*) Leticia Arroyo Abad and Kareem Khalifa (2015), What are stylized facts? Journal of Economic Methodology, 22(2), 143-156.

Week 2 - Mercantilism and the trade deficit as a policy target. Models in economics.

The classics: Specialisation and comparative advantage.

[KOM chapter 2]

[BK chapter 2]

(*) Nicole Palan, Nadia Simoes, Nuno Crespo (2020), Measuring fifty years of trade globalisation, World Economy, 1-26.

(*) David Gould and Roy Ruffin (1996), Trade Deficits: Causes and Consequences, Federal Reserve Bank of Dallas Economic Review, 10-20.

Week 3 - Measuring comparative advantages.

[BK chapter 4]

(*) Luca De Benedictis (2005), Three decades of Italian Comparative

Advantage, World Economy, 28(11), 1679-1709.

Week 4 - General Equilibrium effects in classical trade models.

[KOM part 1 chapter 3]

[KOM part 1 chapter 4]

[KOM part 1 chapter 5]

[BK chapter 7]

[C Prob. and regression review]

(*) Jonathan Eaton and Samuel Kortum (2012) Putting ricardo to Work, Journal of Economic Perspectives, 26(2) 65-90.

Week 5 - Italy in the World Economy. Geography and Trade. Industrial districts

[KOM part 1 chapter 7]

[BK chapter 11]

[S Direct Acyclic Graphs]

(*) Amatori, Bugamelli, Colli (2011), Italian firms in history.

Week 6 - Returns to scale and heterogeneous firms.

[KOM part 1 chapter 7]

(*) Andrew Bernard, Branford Jensen, Stephen Redding, Peter Schott (2007), Firms in international trade, 21(3), 105-130.

(*) Mayer-Ottaviano (2008), The Happy Few, CEPR-Bruges.

Mark Melitz and Daniel Trefler (2012), Gains from Trade when firms matter, Journal of Economic Perspectives, 26(2), 91-118.

Week 7 - International Investments and the theory of Foreign Direct Investments.

[KOM part 1 chapter 8]

(*) Melitz and Trefler (2012) Gains from trade when firms matter.

Week 8 - International Migration.

[KOM part 1 chapter 4]

Borjas (2016), Immigration and Globalization: a review essay, Journal Economic Literature.

Week 9 - Old and new trade policy instruments.

WTO, Annual Report, 2019, chapter 2-3

(*) Yoto Yotov (2022), Gravity at Sixty, Working Paper Series

WP 2022-01, Drexel University.

Week 10 - Gravity equation

(*) De Benedictis and Taglioni (2011), The gravity model in international

trade, Springer.

Week 11 - Structural gravity

[BK chapter 19]

[C Potential outcomes causal models]

(*) Yoto Yotov (2022), Gravity at Sixty, Working Paper Series WP 2022-01, Drexel University.

Week 12 - Network Analysis and interdependence.

[KOM part 2 chapter 10]

(*) De Benedictis and Tajoli (2011) The World Trade Network.

(*) De Benedictis and Tajoli (2016) Comparative advantage and centrality.

• Traditional lectures, class discussion, applied data analysis, take home exercises.

• The assessment of the course will consist in (1) four take-home tests, respectively counting 10%, 20%, 20%, 20% of the final grade; and (2) a written, multiple choice, test, counting for 30% of the final grade. The end-of-the-course test will be made of 21-questions multiple choice test with four answers to each question. Correct answers worth 1.5 points. Wrong answers get a penalisation of -1.0 points. Unanswered questions do not imply any penalisation. The maximum obtainable is 31.5 which is equivalent to “30 e lode”.

  
  

  The test fo Firms and Trends in Global Markets - mod.a will not include topics of the last two weeks of the entire course (Structural Gravity and Networks). See The Weekly Program in Altre Informazioni.

  
  

  The test fo Firms and Trends in Global Markets - mod.b will include the topics of the last two weeks of the entire course (Structural Gravity and Networks). See The Weekly Program in Altre Informazioni.

  
  

  There is not mid-term exam.

  
  

  The four intermediate evaluations will be handed out every two hree weeks, and will consist of an hands-on data analysis exercise to be made using the Statistical programming language R.

  
  

  To pass the overall evaluation the student must get at least more that 18/30 to all evaluations including the final test.

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