Spring 2011




              List of potential research topics

              List of research database


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               


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 (01.02)         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.        


Week 6 (08.02)         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 (15.02)         The Rise of Multinational Firms – the OLI Framework
 (PD)                            Ethier, Wilfred.  1986. “The Multinational Firm.” The Quarterly Journal of                                         Economics, 101(4): 805-833.


Week 8 (22.02)         The Determinants of FDI Structure
(PD)                             Friedman, Milton. 1953.  “The Methodology in Positive Economics.” In                                         Essays in Positive Economics, University of Chicago Press, pp. 3-43.
                                     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.


Homework 1 


Week 9 (01.03)         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 (08.03)      MNE’s Decision Choice with Firm Heterogeneity.
 (PD)                           Helpman, Elhanan, Marc Melitz and Stephen Yeaple. 2004. “Export Versus                                        FDI with Heterogeneous Firms.” American Economic Review, 94(1): 300                                         -316.               


Week 11 (15.03)       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:  Bernard, A., J. Jensen, S. Redding, and P. Schott. 2010. “Intra-                                     Firm Trade and Product Contractibility.NBER Working Papers, w15881.


Homework 2:   TBA


Part 2: Normative aspects of MNEs and interaction with policy


Week 12 (22.03)      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:   Swenson, Deborah. 2007. “Multinationals and the Creation of                                      Chinese Trade Linkages.” NBER Working Paper, w13271.


Week 13 (29.03)      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: Impact of FDI with firm heterogeneity

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



NJ will take ove the rest of the course.