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Advanced International Trade:
Theory and Evidence
Second Edition
Robert C. Feenstra

Hardcover | 2015 | $90.00 | £74.95 | ISBN: 9780691161648
496 pp. | 7 x 10 | 95 line illus. 28 tables.
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bookjacketProfessors: A Solutions Manual is available for qualified professors who have adopted this book in a course. To request a solutions manual, email your request to Include your name, title, university, course name, enrollment and semester.

Empirical exercises are available on the author's website

Trade is a cornerstone concept in economics worldwide. This updated second edition of the essential graduate textbook in international trade brings readers to the forefront of knowledge in the field and prepares students to undertake their own research. In Advanced International Trade, Robert Feenstra integrates the most current theoretical approaches with empirical evidence, and these materials are supplemented in each chapter by theoretical and empirical exercises.

Feenstra explores a wealth of material, such as the Ricardian and Heckscher-Ohlin models, extensions to many goods and factors, and the role of tariffs, quotas, and other trade policies. He examines imperfect competition, offshoring, political economy, multinationals, endogenous growth, the gravity equation, and the organization of the firm in international trade. Feenstra also includes a new chapter on monopolistic competition with heterogeneous firms, with many applications of that model. In addition to known results, the book looks at some particularly important unpublished results by various authors. Two appendices draw on index numbers and discrete choice models to describe methods applicable to research problems in international trade.

Completely revised with the latest developments and brand-new materials, Advanced International Trade is a classic textbook that will be used widely by students and practitioners of economics for a long time to come.

  • Updated second edition of the essential graduate textbook
  • Current approaches and a new chapter on monopolistic competition with heterogeneous firms
  • Supplementary materials in each chapter
  • Theoretical and empirical exercises
  • Two appendices describe methods for international trade research

Robert C. Feenstra is a professor in the Department of Economics at the University of California, Davis, where he holds the C. Bryan Cameron Distinguished Chair in International Economics. His books include Offshoring in the Global Economy and Product Variety and the Gains from International Trade.


Praise for the previous editon: "No other book in advanced international trade matches this one in providing a clear, complete, up-to-date, balanced, and systematic summary of international trade theory and evidence. Its impact on the graduate education and scholarly research of international trade will be felt for years to come."--Bin Xu, University of Florida

Praise for the previous editon: "In fifteen years of teaching this material I have never used a textbook. Thanks to Robert Feenstra, my students are about to experience a dramatic change for the better. When I have a question about international trade I immediately turn to Rob Feenstra for answers and insights. He is the most distinguished empirical researcher in the field today. Not surprisingly, this book reflects both his awesome scholarship and his ability to communicate ideas simply."--Daniel Trefler, University of Toronto

Praise for the previous editon: "This book is a tremendous contribution. It will quickly become 'the' main textbook in graduate international trade classes, and will be a useful reference for many others interested in the field. It is very up-to-date and is unique in emphasizing empirical testing and results, precisely what most trade economists are doing these days."--Douglas Irwin, Dartmouth College, author of Free Trade Under Fire

Praise for the previous editon: "Feenstra covers his topics fabulously. I hope--for the sake of our field--that this book will help to complete a revolution already underway in turning the study of international trade from speculation into a science."--Donald Davis, Columbia University

Praise for the previous editon: "Robert Feenstra is to be congratulated on producing this excellent book, which should be on the bookshelf of anyone interested in trade theory and empirical research on international trade."--Sisira Jayasuriya, Economic Record

Table of Contents:

Acknowledgments ix
Foreword to the Second Edition xi
Chapter 1 Preliminaries: Two-Sector Models 1
Chapter 2 The Heckscher-Ohlin Model 25
Chapter 3 Many Goods and Factors 51
Chapter 4 Trade in Intermediate Inputs and Wages 83
Chapter 5 Monopolistic Competition and the Gravity Equation I 119
Chapter 6 Monopolistic Competition and the Gravity Equation II 155
Chapter 7 Gains from Trade and Regional Agreements 186
Chapter 8 Import Tariffs and Dumping 214
Chapter 9 Import Quotas and Export Subsidies 256
Chapter 10 Political Economy of Trade Policy 299
Chapter 11 Trade and Endogenous Growth 331
Chapter 12 Multinationals and Organization of the Firm 360
Appendix A Price, Productivity, and Terms of Trade Indexes 403
Appendix B Discrete Choice Models 419
References 431
Index 465

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