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TRADE 7003 - Research Methods in International Trade

North Terrace Campus - Summer - 2015

Research Methods in International Trade Policy is a course designed to assist making the transition to the Masters of International Trade and Development studies at the University of ÐÂÀË²ÊÆ±. The first component of the course reviews approaches to evidence-based decision making in public policy, especially the importance of robust data, sound methodology and review. The lectures introduce economic and statistical concepts relevant to trade analysis and the classification systems used to structure and present data on trade flows, investment and production. This section of the course will also review good practice in report writing, critical evaluation of argument and presentation of reports. Activities include identification and evaluation of standard research methodologies in different domains including high profile trade remedy decisions and medical research projects. A second component of the course introduces the specialized on-line data collections relevant to international trade and offers students experience in accessing and using this data effectively. A feature of the course is an introduction to the emerging data on trade in value-added (intermediate products and services) that is changing contemporary policy perspectives on trade. In this section of the course students will learn to read and evaluate reports of the statistical analysis of trade data, including correlation and regression analysis and will be introduced to the use of such analysis in economic models that are increasingly informing policy decisions related to trade agreements. Activities include evaluation of trade-related statistical reporting and a class exercise using on-line access to trade data sets to develop a trade strategy for a developing country manufacturer.

  • General Course Information
    Course Details
    Course Code TRADE 7003
    Course Research Methods in International Trade
    Coordinating Unit Institute for International Trade
    Term Summer
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact 1 week intensive
    Available for Study Abroad and Exchange Y
    Restrictions Available to MIT&D students only
    Quota A quota of 24 applies
    Assessment Research exercise & assignments
    Course Staff
    Name: Mr Peter Gallagher
    Role: Course Coordinator and Associate Expert, IIT
    Location: Level 6, Nexus 10 (10 Pulteney Street)
    Telephone: +61 410 584 395
    Fax: +61 8 8313 6948
    Email: peter@petergallagher.com.au
    Course Timetable

    The full timetable of all activities for this course can be accessed from .

    The full timetable of all activities for this course can be accessed from the Course Planner at
  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:
    1 Identify, critically analyse and develop the evidence necessary for effective and durable trade policies
    2 Draw on a foundation knowledge of international trade resources and research techniques in further international trade courses.
    3 Distinguish between different kinds of resource associated with the law, political context and economics of international trade.
    4 Design and undertake an efficient trade policy research project, using skills associated with effective electronic database and Internet searching in the international trade analysis and trade policy environments.
    5 Find and present international trade and trade policy information so it is meaningful and effective in policy and analytical contexts.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. All
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 3
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1,4,5
    Skills of a high order in interpersonal understanding, teamwork and communication. 4,5
    A proficiency in the appropriate use of contemporary technologies. 2,3,4
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 2,5
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 5
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. All
  • Learning Resources
    Required Resources
    Required Reading

    Papers and articles referenced below can be found in digital form in the Course Information section of the MyUni website

    NOTE WELL: This is an intensive course. We expect students to prepare for each class by completing the required reading IN ADVANCE of the class. Students who do not prepare in advance cannot expect full marks in the quiz to be held each day (except day one) of the course.

    There is at least two to three hours of preliminary reading to be done for each day of the course. Because this course is now delivered in 5 consecutive days, students would be well advised to start their reading as soon as possible, well in advance of the start of classes.

    Before the first day of the course: all students should 

    a. [Required] Visit the website of the Writing Center at  This site contains a number of short articles that you may find helpful. Those on grammar e.g. on the use of articles ("a", "the", "an", "some" etc.) in English are well worth review but will not be discussed in class.

    b. [Required] Download and read at least the following (short) articles before the class. I will discuss these articles in class and will expect students to be familiar with their content

    Reading effectively:

    Paragraph writing:

    Writing an abstract:

    Quick guide to referencing:

    c. [Recommended] Also download and read for future reference

    Introductions and conclusions:

    Writing a research report:

    Writing essays:


    NOTE: there will be a required INDIVIDUAL exercise in paragraph writing on day one. This is assessable and will be marked in the same way as Syndicate exercises on days 2-5. PLEASE see the daily class outline for Day 1 on MyUni for details of the exercise. It will be discussed in class

    Before the second day of the course: all students should

    a. [Required] Read Chapter 3 and Chapter 5 of "Research Methods" (Course materials). All of this material EXCEPT Section 3 of Chapter 5 (on Regression Analysis) will be included in the quiz.

    b. [Recommended] Read "Export Promotion Agencies Revisited" paying attention to the report of the analysis in Table 1 (Course materials). This article will be used for the class exercise. It will NOT be part of the quiz.

    b. [Recommended] Read "Brazil's closedness to Trade" (Course materials). This article will be used for the class exercise. It will NOT be part of the quiz.

    c. [Recommended] Read Chapter 1 and Section 9.5 of the OECD publication “Understanding National Accounts” (Course materials)

    Before the third day of the course

    a. [Required] Read "WTO and Trade Economics: theory and policy" Sections I, II and III (pages 4-2o) (Course materials) This is an explanation of trade theory for non-economists. It will be included in the quiz.

    a. [Required] Read "The Concise Encylopedia of Economics: International Trade" by Arnold Kling. (Course materials) This brief (5-page) essay covers some historical material on trade theory and on the impact of exchange rates. It will be included in the quiz.

    a. [Required] Read Chapter 4 of “Research Methods” (Course materials). This is a brief (4-page) exposition of the static analysis of a tariff and a quota. It will be included in the quiz.

    b. [Required] Read . "Trade In Value-added", pages 1 -3. This is a note by the OECD and WTO on the most important recent development in the understanding of world trade. It will be included in the quiz.

    b. [Recommended] Read. "Ricardo's Difficult Idea" by Paul Krugman. This is a fine essay by a leading trade theorist. It is not difficult to follow but contains a lot of important insight. It will NOT be part of the quiz. 

    c. [Recommended] Read "H&K Fernandez Project" (Course materials). This is the basis of the syndicate exercise for today.

    Before the fourth day of the course

    a. [Required] Read “The domestic sources of foreign economic policies“ by Michael J Hiscox (approx. 30 pages in Course materials or download from the author’s Harvard web site). This is a lucid discussion of the interests and institutions that set trade, immigration, investment and monetary policy agendas in both high and low-income countries. It contains helpful “key points” summaries that students should use to check their understanding of the topics in the essay. The discussion in this paper will be included in the quiz.

    a. [Required] Read “The French Road to Cancún” by Jean-Marie Paugam. ( approx. 13 pages in Course materials) This is a case study from “Managing Participation in WTO” : see the full content of the book on the WTO website. It details the factors that influenced French policies in preparation for a crucial WTO Ministerial meeting. Students should pay special attention to the section “Lessons for Others” that summarises the analysis in the paper. It will be included in the quiz.

    b. [Recommended] Read. “Vanuatu’s suspended WTO Accession - Second Throughts?” by Daniel Gay (Course Materials). This case study from “Managing WTO Participation” will be the basis of a syndicate exercise in class. It will NOT be part of the quiz.

    c. [Recommended] Read “Setting The Trade Policy Agenda: What Roles For Economists” by Kym Anderson (Course Materials). Prof. Anderson asks why economists seem to have such a small impact on trade policies. This paper will NOT be part of the quiz.

    c. [Recommended] Read “Public Choice from The Concise Encyclopedia of Economics” (Course materials). A short summary of key theoretical points in Public Choice theory by one of the leading authorities in the field. Sceptical and “Maddisonian”. We will discuss Public Choice theory in class. This paper will NOT be part of the quiz.

    Before the fifth day of the course


    a. [Required] Read “Global Inequlity & Poverty (2001)“, a chapter from the Australian Treasury’s Economic Outlook publication (Course materials). This is a long discussoin of income growth (and other measures of prosperity) in the 20th century. Students should read the whole chapter; the main points for our course are contained in the following sections:

    1. Summary p. 1

    2. Introduction p. 3

    3. Gains in average world income and living standards in the 20th century p. 6 - 9

    4. Turning the corner? p. 14 - 15

    5. 'Divergence, big time' from slow compounding of productivity differences p. 27 - 28

    6. The effects of central planning on global income equality p. 29 - 30

    7. The probably slow narrowing of absolute income gaps p. 42

    8. Wars and ‘tropical underdevelopment': causes or effects? p. 43 - 44

    9. Conclusions p. 45

    Material from these sections will be included in the quiz.

    a. [Required] Read “World Economy After 1945” ( approx. 10 pages in Course materials). This is a chapter from my forthcoming history of the International Chamber of Commerce (ICC). It ties a brief discussion of 20th and 21st century global growth trends to trends in trade and investment with an emphasis on the role of multinational corporations. It will be included in the quiz.

    b. [Required] Read. “A Brief History of Multinational Enterprises” (approx 8 pages Course Materials). This is an annex from my book on the history of the ICC that summarizes the activities and contributions of MNEs in the 20th Century. It will be part of the quiz.

    c. [Recommended] Read “Measured, Unmeasured, Mismeasured, and Unjustified Pessimism” by Dierdre McCloskey (about 50 pages in Course Materials). This is a recent review by a leading economic historian of Thomsas Picketty’s book “Capital”. It is a tour-de-force essay on the subjects of inequality, economic growth and prosperity. Do yourself a favour and read the whole thing, but this paper will NOT be part of the quiz.
    Recommended Resources
    This intensive course is only an introduction to the concepts and methods relevant to trade research. The supplementary texts mentioned here will help you to better understand the material we will discuss in class and will help you, after the course, to continue to improve your understanding of trade analysis

    1. Students with no background in international economics or trade may wish to to read an introductory text before starting the classes.

    * “International Trade: Free, Fair and Open?”, is an OECD publication that contains an easy introduction to the concepts and the data. It is FREELY AVAILABLE in different formats here

    * Alternately (or as well) students should consult the introductory chapters of a standard textbook (available in the Library or frequently at second-hand bookstores) such as Chapter 1 of “International Econmics” by Krugman and Obstfeld (Addison-Wesley – several editions)

    2. Students not familiar with the structure and content of the WTO Agreements, could read at least the second chapter of ‘Understanding the WTO’ that can be found on-line here:

    * Students should also acquaint themselves with the content of at least Articles I - III of the GATT (1947) that can be found at

    3. Any elementary statistics text will provide the basic descriptive statistics needed as a preliminary for this course. Students with no previous background in statistics or probability will improve their understanding of the concepts introduced by consulting a good introductory text such as “Statistics Essentials for Dummies”, by Deborah Rumsey, available in many bookshops and on line (e.g. Amazon.com) for about $20 or less.

    * A good, introductory, on-line (free) text covering this same material is “Concepts and Applications of Inferential Statistics” at

    4. Students may find these Excel spread-sheet models of static equilibrium analysis of trade interventions helpful:

    5. Students should be familiar with, and to practice, good English grammar and expression. A suitable modern grammar such as Patricia T. O’Conner’s “Woe is I” (the latest edition, 2009, published by Penguin Putnam is available from many large bookstores e.g. Dymocks. The on-line price is $19.95 plus shipping).
    Online Learning
    Laptops/Tablets

    This course relies heavily on the use of on-line research materials including in-class use of U.N. trade databases. Students are strongly encouraged to bring a wifi-enabled device (preferably a laptop or tablet) to class to follow along with the demonstrations.

    Online Resources

    For more information about the organizations whose publications we will use, the best sources are their websites:

    World Trade Organization
    World Bank
    Organization for Economic Cooperation and Development
    International Trade Centre
    Food and Agriculture Organization
    United Nations Conference on Trade and Development
  • Learning & Teaching Activities
    Learning & Teaching Modes
    There will be five units conducted as graduate seminars/workshops.

    Students will be expected to PREPARE EACH DAY’s CLASS carefully. The program for each day EXCEPT the first day will be:

    6. A QUIZ on the background material that will be marked in class. The quiz will be held **during the first session of the class ** on every day but the first day.

    7. The purpose of the quiz is to assess students' comprehension of the material to be read in preparation for the class. The questions will draw only on the reading material.

    8. Students will have an opportunity to pose questions on the reading material (and the previous day's lecture) BEFORE the quiz.

    9. The quiz will be open-book. Students will be permitted to consult their notes etc during the quiz. But there will NOT BE TIME to consult the reading materials for the first time. Students who have not read the required reading in advance will not do well in the quiz.

    10.Students arriving late for class will have to leave the room and complete the quiz before joining the class

    11. Quiz answers will be discussed in class

    12. The quiz scores will count towards students' final mark (details of assessment will be discussed in the first class)

    13. Preliminary questions, the quiz and the discussion will occupy the first 90 minutes of class each day

    14. A workshop exercise related to the unit to be completed by student groups.

         * Groups will change each day

         * The group exercises will be described in the class materials distributed before classes begin so students can begin to prepare the exercises at any time (the sooner the better)

         * Group exercises will comprise 90 minutes before the lunch break plus 45 minutes after the lunch break

    15. A discussion/presentation of the workshop results by student groups. A group mark, based on the presentation will be assessed for the completion of the exercise. The group mark will count towards students' final mark.

         * 90 minutes will be allotted for presentations and discussion

    16. The final hour of class will comprise a presentation by the course convenor on the topics for the following day.

    The first day's class will be devoted to a seminar on research writing followed by individual exercises on research writing; presentation and discussion of the exercises and a lecture on the material for Day 2. The exercises on Day 1 will not be marked and will not count towards the student's final mark.

    PLEASE NOTE: The required reading for each class will take THREE TO FOUR HOURS. Students MUST prepare these classes in advance; preferably in the weeks before classes begin. Students will probably NOT have time to prepare each day’s class on the night before. If you have not read and understood the assigned materials before class you will not do well in the quizzes or the course.