Online Summer School on International Trade and Gravity Models
Attendance dates:September 2022: 19, 20, 21
Time commitment: 3 days
- Centre for International Macroeconomic Studies
Given the spread of the Coronavirus and the difficulty in air travel we have decided to deliver the Summer school in an online format. This decision has been made to ensure the safety of our participants, our colleagues, and all those involved with the Summer School. The Summer Schools in 2020 and 2021 were also held online; they were very successful and enabled many participants to attend from all over the world without the need to travel.
The course will be conducted using Zoom platform. The University and the lecturers have extensive experience with online teaching and have state-of-the-art systems to do so as well as being able to deliver highly interactive lectures. Though we will do our best to record all the sessions, we expect participants to attend them live to enable them to interact with lecturers and ask questions.
The first day of the summer school will be centred on introducing the theoretical background of the gravity equation and its main applications for economic policy. On its second day, the course will move on to address the actual challenges in terms of computation and estimation of the gravity equation for international trade. On day three the summer school will consist of three separate two-hour sessions on topics that will expand on issues related to international trade flows beyond the standard gravity equation approach. These include the impacts of income on international trade flows and main features of North-North trade versus North-South trade; the economics of Brexit, both from a short-run and long-run perspective; and economic warfare in a context of trade negotiations between symmetric and asymmetric trade partners.
Our summer school is suitable for PhD students and advanced masters students with a focus on international trade. It is also suitable for practitioners and policymakers working on international trade, with special interest in applications of gravity models and in deepening their understanding of the determinants of trade flows.
The lectures will take place via Zoom. This course requires basic knowledge of Stata. Participants can request a short-term license for free.
This course will start by introducing the theoretical background of the gravity equation. It will then show how the gravity equation can be used to guide trade policy, and discuss its connection to free trade agreements and currency unions. On the second day, students will be introduced to the estimation of gravity models using pseudo-maximum likelihood estimators. Computational aspects and extensions will be also discussed.
- Traditional gravity equation (Tinbergen version)
- Theory-based gravity equation
- Introduction to estimation of the gravity equation
- Introduction to Poisson pseudo-maximum likelihood regressions (PPML)
- Comparison with other approaches
- PPML estimation with fixed effects
- Computational aspects and extensions
- Applications of gravity equation to trade policy
- Impact of free trade agreements on trade flows
- Currency unions and trade flows
- Income effects on trade flows (nonhomothetic demand and trade)
- North-South trade vs. North-North trade
- From inter-industry to intra-industry trade
- Applied game theory of economic and trade warfare
- Weaponizing trade flows
- Historical cases of asymmetric trade negotiations
- Solution: international institutions
- Introduction to Brexit: a brief chronology of events, who voted for Brexit and why.
- The economic effects of Brexit, part I: long-run effects of Brexit predicted by both mainstream and pro-Brexit economists.
- The economic effects of Brexit, part II: the short-run effects of Brexit (2016-2020) on variables such as GDP, inflation, FDI and trade flows.
Learning and teaching methods
You will be sent computer codes, lecture notes, and slides ahead of the course and will also receive direct assistance before the Summer School starts in order to set up all the systems ahead of the online events.
There will be opportunities to discuss your projects and research ideas during virtual coffee breaks. After the Summer School, lecturers will be available to answer questions and discuss your projects.
Our summer school is suitable for PhD students and advanced masters students with a focus on international trade. It is also suitable to practitioners and policymakers working on international trade.
Fees and funding
Price per person:
What these fees include
Participants requiring additional financial assistance can indicate so in their application. Limited funding opportunities are available.
- £1,500 Non-academic participants
- £1,100 for Academics
- £600 for students.
This course can also be combined with one day stand-alone courses. The combined fee for the two courses:
- £780 Non-academic participants
- £533 for Academics
- £270 for students.
The following concessions are available:
- 10% discount for participants who register by July 15
- 10% discount for participants who have attended a previous course with the Centre for International Macroeconomic Studies
- 20% discount for participants from institutions in developing countries.
Multiple discounts are not applicable.
How to apply
Deadline for applications is 29 August 2022, but we encourage you to apply as soon as possible as the places will be allocated using a rolling selection process.
If your application is successful, you will receive an email offering you a place and you will have two weeks to pay the full fees balance to secure this.
Terms and conditions
When you accept an offer of a place at the University of Surrey, you are agreeing to comply with our policies and regulations and our terms and conditions. You are also confirming you have read and understood the University's prospective student privacy notice.
Further details of our terms and conditions will follow.
This online prospectus has been prepared and published in advance of the commencement of the course. The University of Surrey has used its reasonable efforts to ensure that the information is accurate at the time of publishing, but changes (for example to course content or additional costs) may occur given the interval between publishing and commencement of the course. It is therefore very important to check this website for any updates before you apply for a course with us. Read more.