(* Readings are required.)
Lecture 1. Introduction to economic development: nature, meaning and objectives
*TS , Chapter 1: Economics, Institutions, and Development: A Global Perspective
*The World Bank, World Development Report (2004), Introduction and Chapter 1
DR , Chapter 1: Introduction and chapter 2 Economic Development: An Overview.
Sen, Amartya (1988), The Concept of Development, in H. Chenery and T. N. Srinivasan (eds.), Handbook of Development Economics.
Sen, Amartya (1993), Development: Which Way Now? The Economic Journal, 93 (December).
Lecture 2. Differences and commonalities among developing countries: indicators
*TS , Chapter 2: Comparative Development: Differences and Commonalities Among Developing Countries
*Dani Rodrik and Arvind Subramanian, 2003, The Primacy of Institutions (and what this does and does not mean) , Finance and Development, June 2003 Volume 40, Number 2
Easterly,William, and Ross Levine, 2002, Tropics, Germs and Crops: How Endowments Influence Economic Development , NBER Working Paper 9106 (Cambridge,Massachusetts: National Bureau of Economic Research).
Gallup, John Luke, and Jeffrey D. Sachs with Andrew D.Mellinger, 1998, Geography and Economic Development , paper presented at the Annual World Bank Conference on Development Economics, Washington, D.C., April.
Visit UNCTAD web site on Least developed countries, land-locked countries and island states
(LDC Case Studies) and website on Development of Africa
Lecture 3. Classic theories of economic development
*TS , Chapter 3, Classic Theories of Economic Development
*Easterly, William (2002), The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics , Cambridge, MA.: MIT Press., Chapter 1 (Why Growth Matters) , Chapter 2 (Aid for investment), Chapter 3 (Solow's surprise).
DR , Chapter 3: Economic Growth
On Rostow's stages of growth
Website on major development economists: from early development theorists to the Neo-Liberal School
Lecture 4. Contemporary models of development
*TS , Chapter 4, Contemporary models of development and underdevelopment
DR , Chapter 4: The New Growth Theories
Barro, Robert, and Xavier Sala-i-Martin (2004), Economic Growth , Second Edition: Introduction.
Lecture 5. Poverty, Inequality and development
*TS , Chapter 5, Poverty, Inequality, and Development
* World Development Report 2006 Overview and Introduction
Engerman, L., and K. Sokoloff (2006), Colonialism, Inequality, and Long Run Paths of Development in Understanding Poverty , edited by A.B. Banerjee, R. Benabou, and D. Mookherjee. Oxford University Press.
DR Chapter 6, 7 (pp 220-241).
World Development Report 2000/2001, Attacking Poverty , The World Bank, Washington, D.C.: Oxford University Press., pp. 117 131.
Dollar, David (2002), Growth is Good for the Poor , Journal of Economic Growth, 7 (3), 195-225.
Aghion, Philippe, and Beatriz Armendáriz de Aghion (2006), A New Growth Approach to Poverty Reduction , in Understanding Poverty , edited by A.B. Banerjee, R. Benabou, and D. Mookherjee. Oxford University Press.
Piketty, Thomas (2006), The Kuznets Curve: Yesterday and Tomorrow , in Understanding Poverty , edited by A.B. Banerjee, R. Benabou, and D. Mookherjee. Oxford University Press.
Lecture 6. Economic growth decomposition: proximate and fundamental determinants: Measuring TFP growth
*Rodrik, Dani, (2003), Introduction What do we learn from country narratives? in Rodrik, ed., In Search of Prosperity: Analytic Country Studies on Growth, Princeton University Press, Princeton, NJ, 2003.
*DR , Chapter 4: The New Growth Theories Measuring Technical Progress.
P. Kugman, 1994, The Myth of Asia's Miracle , Foreign Affairs, 73, 6, p62.
A. Young, 1995," The tyranny of numbers: confronting the statistical realities on the East Asia Growth Experience ", Quarterly Journal of Economics, 110, 3, pp. 641-680.
Hall, R. and C. Jones. 1999. Why Do Some Countries Produce So Much More Output Per Worker Than Others? Quarterly Journal of Economics CXIV(1): 83-116.
Lecture 7. Population growth and development
*TS , Chapter 6, Population Growth and Economic Development
DR , Chapter 9, Population Growth and Economic Development
Robert H. Cassen, 1976, Population and development: A survey, World Development 4 (1976): 785-830.
Nancy Birdsall, 1988, Economic approaches to population growth, in Handbook of Development Economics, vol. 1, ed. Hollis B. Chenery and T. N. Srinivasan (Amsterdam: Elsevier, 1988).
Partha Dasgupta, 1995, The population problem: Theory and evidence, Journal of Economic Literature, 33 (1995), 1879-1902.
Kelly, A.C. (1988), Economic Consequences of Population Change in the Third World, Journal of Economic Literature, 26 (2), pp. 1685 1728.
Lecture 8. Urbanization and Rural-Urban Migration: Theory and Policy
*TS , Chapter 7, Urbanization and Rural-Urban Migration: Theory and Policy
Williamson, Jeffrey (1988), Migration and Urbanization in H. Chenery and T. N. Srinivasan (eds.), Handbook of Development Economics, Volume 1.
DR , Chapter 10-3 (p. 372-398)
Lecture 9. Capital accumulation: credit market imperfections
*DR , Chapter 14: Credit
*Besley, Timothy. (1994): "How do Market Failures Justify Interventions in Rural Credit Markets" World Bank Research Observer 9 (1)
pg. 27.
Besley, Timothy (1995), Savings, Credit and Insurance, pp. 2175 2201, in T.N. Srinivasan Handbook of Development Economics , Vol. III.
Lecture 10. Microfinance: models
*Morduch, Jonathan (1990), The Microfinance Promise , Journal of Economic Literature, Vol. XXXVII. Lead article (December)
* Armendáriz de Aghion, Beatriz , and Jonathan Morduch (2005), The Economics of Microfinance , MIT Press, Chapters 1, 4 and 5.
Armendáriz de Aghion, Beatriz and Christian Gollier (2000), Peer Group Formation in An Adverse Selection Model , The Economic Journal, July.
Armendáriz de Aghion, Beatriz (1999), On the Design of a Credit Agreement With Peer Monitoring, Journal of Development Economics 60: 79 104.
Armendáriz de Aghion, Beatriz , and Jonathan Morduch (2005), Microfinance: Where do we stand? Forthcoming in Charles Goodhart (ed.), Financial Development and Economic Growth: Explaining the Links, London: Macmillan/ Palgrave.
Lecture 11. Microfinance: determinants of success and impact
* Armendáriz de Aghion, Beatriz , and Jonathan Morduch (2005), The Economics of Microfinance , MIT Press, Chapters 8 and 9.
Yunus, Muhammad (2002), Grameen Bank II: Designed to Open New Possibilities .
Armendáriz de Aghion, Beatriz , Ashok Rai, and Thomas Söjström (2002), Poverty Reducing Credit Policies , in Understanding Poverty , by Abhijit Banerjee, Roland Benabou and Dilip Mookherjee.
Marie Godquin, (2004), "Microfinance Repayment Performance in Bangladesh: How to Improve the Allocation Loans by MFIs?" World Development, Vol. 32, No. 11, 19091926.
Lecture 12. Human Capital: Education and Health in Economic Development
*TS , Chapter 8, Human Capital: Education and Health in Economic Development.
*Easterly, William (2002), The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics , Cambridge, MA.: MIT Press., Chapter 4 (Educated for what?)
Psacharopouls and A. Patrinos, Returns to Investment in Education: A Further Update, World Bank Working Paper #2881, 2002.
Philippe Aghion, Leah Boustan, Caroline Hoxby and Jerome Vandenbussche, 2005, Exploiting States' Mistakes to Identify the Causal Impact of Higher Education on Growth .
February 21 : Mid-term exam
Lecture 13. Fundamental determinants of development: Institutions
*TS , Chapter 11 Development Policymaking and the Roles of Market, State, and Civil Society
*Acemoglu, Daron, Simon Johnson, and James Robinson (2006), Understanding Prosperity and Poverty: Geography, Institutions, and the Reversal of Fortune , in Understanding Poverty , edited by A.B. Banerjee, R. Benabou, and D. Mookherjee. Oxford University Press.
Glaeser, Eward, Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer, Do Institutions Cause Growth , mimeo, Harvard University
La Porta, Rafael, Florencio López de Silanes, Andrei Shleifer and Robert W. Vishny (1999), The Quality of Government , Journal of Law, Economics and Organization, 15: 1, pp. 222 279.
Dani Rodrik, Arvind Subramanian and Francesco Trebbi, 2002, Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development . Journal of Economic Growth, vol. 9, no.2, 131-165.
Dani Rodrik and Roberto Rigobon, 2004, Rule of Law, Democracy, Openness and Income: Estimating the Interrelationships . A new attempt to identify the causal relationships among institutions, income, openness, and geography.
Kaufmann, D. 2003. Rethinking Governance: Empirical Lessons Challenge Orthodoxy . Washington DC: World Bank Institute.
Lecture 14. Industry policy
*Dani Rodrik, (2006), Industrial Development: Stylized Facts and Policies , mimeo.
*Dani Rodrik and Ricardo Hausmann, (2006), Doomed to Choose: Industrial Policy as Predicament , mimeo.
World Development Report (2005), Chapters 1 and 2
Murphy, K. M., Andrei Shleifer, and Robert Vishny (1989), Industrialization and the Big Push, Journal of Political Economy, Vol. 97, pp. 1003 1026.
DR, Chapter 5: History, Expectations and Development
Rosenstein Rodan, P. (1943), Problems of Industrialization of Eastern and South-eastern Europe, The Economic Journal, June September, pp. 204 -207.
Eswaran, Mukesh, and Ashok Kotwal (1994), Why Poverty Persists in India? Oxford University Press, Dehli.
Lecture 15. Trade theory and development
*TS, Chapter 12 Trade Theory and Development Experience
*Dollar, David (2001), Globalization, Inequality and Poverty Since 1980 , Washington, D. C. : The World Bank.
Rodrik, Dani (2001), The Global Governance of Trade as if Development Really Mattered , UNDP, October.
Bhagwati, Jagdish, and T. N. Srinivasan (2002), Trade and Poverty in Poor Countries American Economic Review., 92, 2 (May), pp. 180-183.
Srinivasan, T. N. and J. Bhagwati. 2001. Outward Orientation and Development: Are Revisionists Right? in D. Lal and R. Snape (eds.) Trade, Development and Political Economy. New York: Palgrave. Comment by Dani Rodrik
Rodrik, Dani (2002), Feasible Globalizations , NBER Discussion Paper No. 9129.
Lecture 16. Trade policy
*TS , Chapter 13: The Trade Policy Debate: Export Promotion, Import Substitution, and Economic Integration.
*David Dollar & Aart Kraay (2001): Trade, Growth and Poverty Working Paper, World Bank.
*Dani Rodrik (2000): Comments on Dollar & Kray , Mimeo, Harvard.
Dani Rodrik, 2006, Goodbye Washington Consensus, Hello Washington Confusion? , mimeo. The Washington Consensus is dead. What will take its place?
Dani Rodrik, Ricardo Hausmann and Jason Hwang, 2006, What You Export Matters , mimeo.
Lecture 17. Foreign financing: two gap model, International flow of financial resources
*TS , Chapter 14 Balance of Payments, Developing-Country Debt and the Macroeconomic Stabilization Controversy and Chapter 15 Foreign Finance, Investment, and Aid: Controversies and Opportunities
Philippe Aghion, Peter Howitt and David Mayer-Foulkes, 2003, The Effect of Financial Development on Convergence: Theory and Evidence .
Eswar Prasad, Kenneth Rogoff, Shang-Jin Wei and M. Ayhan Kose, 2003, Effects of Financial Globalization on Developing Countries, Some Empirical Evidence. IMF.
Lecture 18. Foreign financing: Debt and debt crisis
*TS, Chapter 14 Balance of Payments, Developing-Country Debt and the Macroeconomic Stabilization Controversy
*Armendáriz de Aghion, Beatriz , (1999) Analytical Issues on LDC Debt: A Survey , The World Economy (July - August).
Living with debt (2006) IADB report. Chapter 3 "How Does Debt Grow?"
Armendáriz de Aghion, Beatriz , and Francisco Ferreira (1999) The World Bank and the Analysis of the International Debt Crisis , in J. Harris, J. Hunter, and C. Lewis (eds.) The New Institutional Economics and Third World Development, Routledge.
Lecture 19. Foreign financing: Debt forgiveness
*Easterly, William (2002), The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics , Cambridge, MA.: MIT Press., Chapter 6 (The loans that were, the growth that wasn't) and Chapter 7 (Forgive our debts).
Nancy Birdsall,
John Williamson and Brian Deese, 2002, Delivering on Debt Relief: From IMF Gold to a New Aid Architecture, Center for Global Development. Chapter 2 The HIPC Initiative: Backgrounds and Critiques and Chapter 5 Deepening and Extending Debt Reduction.
Jeffrey Sachs (2002), Resolving the Debt Crisis of
Low-Income Countries, Brookings Papers on Economic Activity.
Lecture 20. Foreign financing: Asian Crisis
*Morris Goldstein, 1998, The Asian Financial Crisis: Causes, Cures, and Systemic Implications, Policy Analyses in International Economics 55. Chapter 2 Origins of the Crisis and chapter 5 Lessons of the Asian Crisis and Concluding Remarks
Paul Krugman (2000), Analytical afterthoughts on the Asian crisis
Lecture 21. IMF stabilization and financial architecture
*Barry Eichengreen, 1999, Toward A New International Financial Architecture: A Practical Post-Asia Agenda.
IIE. Chapter 7 What the IMF Should Do (And What We Should Do About the IMF)
*Edwin M. Truman, 2006, Reforming the IMF for the 21st Century, IIE. Chapter 29 An IMF Reform Package.
Lecture 22. Foreign financing: aid
AFD, (2005), Financing Development: What Are the Challenges in Expanding Aid Flows? *Easterly chapter "How to assess the need for aid? The answer: don't ask.
AFD, (2004), Development Aid: Why and How? Towards strategies for effectiveness
*J. W. Gunning chapter "Why give aid?"
Lecture 23. Aid effectiveness debate
*C. Burnside et D. Dollar (2000), “Aid, Policies and Growth”, American Economic Review 90 (4), September, 847–68.
*Comments by W. Easterly, R. Levine et D. Roodman, 2004, "Aid, Policies and Growth: a comment" American Economic Review, Vol. 94, n°3, pp. 774-780.
Response to comments by C. Burnside et D. Dollar, 2004, "Aid, Policies and Growth: Reply" American Economic Review, Vol. 94, n°3, pp. 781-784.
The World bank report that started it all: World Bank report. Assessing Aid.
M. Clemens, S. Radelet et R.Bhavnani, 2004, "Counting chickens when they hatch: The short term effect of aid on growth", Center for Global Development wp 44.
Comments by Rajan, Raghuram and Arvind Subramanian, 2005, " Aid and Growth: What Does the Cross-Country Evidence Really Show? ", IMF working paper 5127.
Literature review (Agence Française du Développement) by L. Chauvet and J. Amprou (in French)
W. Easterly, 2003, "Can Foreign Aid buy Growth?" Journal of Economic Perspectives, 17 (3), 2348.
ODI "Poverty efficient aid allocations"
W. Easterly, 2006, chapter "The legend of the big push" in book The White Men's burden.
*Paul Collier and Hoeffler, 2006, "Civil War", forthcoming in the Handbook of Defense Economics.
Paul Collier, (1999), "On the Economic Consequences of Civil War" Oxford Economic Papers 51, 168-83.
Paul Collier, (1998), "On Economic Causes of Civil War", Oxford Economic Papers 50 , 563-73.
Paul Collier and Anke Hoeffler, (2001), Greed and Grievance in Civil War
Paul Collier, Anke Hoeffler and Måns Söderbom, (2001), "On the Duration of Civil War"
Lecture 25. Concluding remarks: perspectives
* TS , Chapter 17, Some Critical Issues for the Twenty-First Century
Suggestions for Further Reading: check new stuff on prominent scholars
Beatriz Armendariz
Esther Duflo
William Easterly
Jonathan Morduch
Dani Rodrik
Jeffrey Sachs
Paul Collier
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