Economics: Advanced Trade Theory

You start with the notion that international trade has played a central role in the global decline of poverty since the late 1970s. Understanding how trade creates wealth is complex and requires multiple theoretical perspectives. You trace the evolution of trade theory – from comparative advantage to modern models that emphasise product variety and firm competition.

Starting with classical trade theory, we show how countries benefit from specialising according to their comparative advantage. You then move to modern trade theory, where increased product variety and firm-level competition further improve consumer welfare and economic efficiency.

The course equips you with practical tools for empirical trade analysis. You learn how to collect, structure and analyse trade data – for example, assessing the impact of a free trade agreement.

Teaching is delivered through lectures. The textbook is supplemented by selected research articles.

Examination consists of a midterm exam, final written exam and assignments. In the practical assignments, you organise and analyse real-world trade data using Stata. You also develop your own research project plan. This plan will focus on a real-world trade issue, applying the gravity model of trade. The project is designed to be a foundation that can easily be expanded into a full master thesis later on.

Prerequisites

Students admitted to the Master programme in Economics and who have taken an intermediate course in trade theory (e.g. NEKH72 "Trade Theory ") are qualified for this course. For other students at least 90 ECTS-credits in economics at the undergraduate level are needed for admission to all master courses in economics. To be admitted to this particular course these credits must include an intermediate course in trade theory (e.g. NEKH72 "Trade Theory ").

Selection criteria

Seats are allocated according to: ECTS (HPAV): 100 %.

Tuition fees for non-EU/EEA citizens

Citizens of countries outside:

• The European Union (EU)
• The European Economic Area (EEA) and
• Switzerland

are required to pay tuition fees. You pay an instalment of the tuition fee in advance of each
semester.

Tuition fees, payments and exemptions

Full programme/course tuition fee: SEK 16,875
First payment: SEK 16,875

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Note that you may also need to pay an application fee, or provide proof of exemption.

Application fee

No tuition fees for citizens of the EU, EEA and Switzerland

There are no tuition fees for citizens of the European Union (EU), the European Economic Area (EEA) and Switzerland.