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Text-as-data analysis of international trade

Dmitriy Skougarevskiy, European University at St. Petersburg

Overview

With multilateral negotiations at the World Trade Organization (WTO) in deadlock, rule-making on international economic governance has shifted to preferential trade agreements (PTAs). This short 5-week course seeks to introduce the audience to recent trends in international economic order in quantitative fashion. We will discuss the workhorse model of empirical international trade in goods and extend it with the aid of the textual information on trade law covering those flows.

In doing so we will learn how to gather information on merchandise trade, predict trade flows, and represent texts as vectors. Practical sessions will take the theory to statistical packages; the course is hands-on, with each lecture followed by a code review session.

Course Requirements

Readings The course consists of lectures and lab sessions. Each lecture and lab session is accompanied by required readings. I expect the participants to have read the required materials by the beginning of each lecture or session.

Code During lab sessions we will review and execute pre-written code together. Code snippets will be disseminated before each session in code/ folder in this repository. Participants are required to have the code ready on their laptops before each lab session.

Technical requirements Each lab session will be conducted hands-on, with your laptops. I expect you to come to the first lab session with base R (https://www.r-project.org) preinstalled.

Evaluation Since this is a zero-credit course, there will be no evaluation.

Working language English.

Course Schedule

Lecture 1 | Preferential Trade Agreements and International Economic Order (slides)

Lab Session 1 | Working with XMLs in R (code)

Lecture 2 | Gravity and Gravitas (slides)

Lab Session 2 | Working with COMTRADE (code)

Lecture 3 | Text factorisation I: Bag-of-words methods (slides)

Lab session 3 | Reducing PTA document-term matrices to latent spaces (code)

Lecture 4 | Text factorisation II: Distributional semantics (slides)

Lab session 4 | Learning the meaning of legal terms in PTAs with embeddings (code)

Lecture 5 | Welfare effects of Preferential Trade Agreements (slides)

Lab Session 5 | Putting the pieces together: PTA embeddings and merchandise trade (code)

  • This session will capitalise on all the previous readings

License

This course is distributed under the Creative Commons Attribution-NonCommercial 4.0 International license.

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