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The University of Southampton

ECON6016 International Trade

Module Overview

The module will cover the factors underlying the movement of flows of goods and services, people and capital across borders.

Aims and Objectives

Module Aims

To provide an understanding of the factors underlying the movement of flows of goods and services, people and capital across borders. We will cover the microfoundations of different trade models, and their economic policy implications.

Learning Outcomes

Learning Outcomes

Having successfully completed this module you will be able to:

  • Formulate and approximately solve equilibrium trade models;
  • Formulate theoretical conjectures in terms of appropriate statistical models for estimation and testing
  • Understand where and why the state-of-the-art is in international trade;
  • Understand the strengths and weakness of different types of trade data;
  • Interpret and evaluate the results of econometric analysis in a range of contexts.


The topics to be covered include: • Comparative advantage and the gains from trade; theories of comparative advantage; • Factor price equalisation and the relationship between relative prices and factor prices; • Factor endowments, the international location of production and patterns of international trade; • Trade policy, and its implications for the movement of people and capital.

Learning and Teaching

Teaching and learning methods


Independent Study80
Total study time100

Resources & Reading list

Other. There is no single textbook suitable for this course. Full details of references to textbooks and journal articles or working papers will be provided at the beginning of the course. Detailed course information is available through Blackboard.



Problem sets


MethodPercentage contribution
Exam  (2 hours) 90%
Problem sets 10%


MethodPercentage contribution
Exam  (2 hours) 100%

Repeat Information

Repeat type: Internal & External

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