Spring 2012



              Term paper guideline

              List of potential research topics

              List of past students' research topics

              List of research database

              An example of a good student term paper



Lecture Notes Update:

Lecture notes 1       Lecture notes 2          Lecture notes 3   

Lecture notes 4       Lecture notes 5          Lecture notes 6   

Lecture notes 7       Lecture notes 8         

Big Picture Series 2012 in one file      


Homework Assignments:

HW1       HW2     



Part 1: Positive aspects of MNEs

(Note: all papers can be accessed via CBS network, or through CBS off-campus authorization)


Week 5 (03.02)         Course Overview
(PD & NJ)                   Navaretti, GB and A. Venables. 2004. “Chapter One: Facts and Issues,” in                                         Multinational Firms in the World Economy, Princeton University Press.   

                                     other readings: two pieces on Apple and the iPhone economy

                                       1. Slice Apple's iPhone

                                       2. Apple - the most profitable company


Week 6 (10.02)         An Introduction to Firm Theory in MNE’s Context
 (PD)                            Hart, Oliver. 1989. “An Economist Perspective on the Theory of Firm.”                                         Columbia Law Review, 89(1): 1757-1774.      

                                     Holstrom, Bengt and John Roberts. 1998. “The Boundaries of the Firm                                         Revisited.” Journal of Economic Perspectives, 12(4): 73-94.   


Week 7 (17.02)         The Rise of Multinational Firms – the OLI Framework
 (PD)                            Ethier, Wilfred.  1986. “The Multinational Firm.” The Quarterly Journal of                                         Economics, 101(4): 805-833.

                                     Friedman, Milton. 1953.  “The Methodology in Positive Economics.” In                                         Essays in Positive Economics, University of Chicago Press, pp. 3-43.


Week 8 (21.02)        The Determinants of FDI Structure
 (PD)                           Yeaple, Stephen.  2003. “The Role of Skill Endowment in the Structure of the                                         US Outward Foreign Direct Investment.” Review of Economics and Statistics,                                         85(3): 726-734.


Week 9 (28.02)         MNE’s Decision Choice
 (PD)                           Hanson, G., R. Mataloni and Matt Slaughter. 2001. “Expansion Strategies of                                        US Multinational Firms.” NBER Working Papers, w8433.    


Week 10 (06.03)       MNEs Under Market Frictions
 (PD)                            Antras, Pol, et al. 2009. “Multinational Firms, FDI Flows, And Imperfect                                         Capital Markets.” Quarterly Journal of Economics, 124(3): 1171-1219.

                                     Exercises (Group 1 presentation):  Bernard, A., J. Jensen, S. Redding, and P.                                         Schott. 2010. “Intra-Firm Trade and Product Contractibility.American Economic                                         Review, 100(2): 444-448.


Part 2: Normative aspects of MNEs and interaction with policy


Week 11 (13.03)      Impact of MNEs on Host Countries, Part I
 (PD)                           Javorcik, Beata Smarzynska. 2004. “Does Foreign Direct Investment Increase the                                       Productivity of Domestic Firms? In Search of Spillovers through Backward                                       Linkages." American Economic Review, 94(3):605-627.

                                   Exercises (Group 2 presentation):  Swenson, Deborah. 2008. “Multinationals and                                       the Creation of Chinese Trade Linkages.” Canadian Journal of Economics, 41(2):                                       596-618 .


Week 12 (20.03)      Impact of FDI on Host Countries, Part II
 (PD)                           Harrison, Ann and Brian Aitken. 1999. "Do Domestic Firms Benefit from                                        Direct Foreign Investment? Evidence from Venezuela." American Economic                                        Review, 89(3), 605-618.
                                    Exercises (Group 3 presenation): Impact of FDI with firm heterogeneity

                                    Deng, Paul and Gary Jefferson. 2009. “Foreign Entry and Heterogeneous Growth of                                      Firms: Do We Observe ‘Creative Destruction’ in China?.” Working Paper,                                      Department of Economics, Brandeis University. 




NJ will take ove the rest of the course.