ICB0015: DEVELOPMENT ECONOMICS

1.1 Background and Rationale

Development economics represents one of the most interesting and
important branches of economics touching directly or indirectly upon
economics, politics, and history. This course is aimed at providing students
with an overview of some of the major economic ideas in development
thinking. Unlike the abstract approaches taken by many courses, this course
will focus on developing skills needed to think about economic problems. By
the end of the course, you should be able to find interesting problems in
development economics and approach them in a rigorous and critical
fashion.

1.2 Learning Outcomes

At the end of the course, students will be expected to:
(a) Have an increased understanding of the development process and the
constraints confronting developing economies (and, to some extent, poor
households and individuals)
(b)Have an increased ability to apply economic tools to analyse problems of
underdevelopment and to critically assess the economic policies of
developing economies

1.3 Course Content

1.0 Poverty-Growth-Inequality Triangle
the role of economic development in development and poverty

development economics in international development studies

the evolution of economic development thoughts, with the causes of

poverty;
 the stylized facts in economic development (open, closed, and
emerging questions);

determinants of growth (factors that define steady state);

development and equity-- the P-G-I triangle;

development with de-population/aging-population;

measurements and determinants of multifaceted poverty: absolute vs.

relative, objective vs. subjective poverty;

In search of a new development paradigm toward the post-MDGs era.

2.0 Theoretical Arguments

representative theories of development (traditional and new growth
theories);

dualistic development and structural change (rural-urban and/or

agricultural-non-agricultural dichotomy and two-sector models, internal
migration models)

3.0 Markets vs. Controls: Building Institutions for Development

Coordination
guiding developmentmarkets vs. controls (forces of the market, the
role of government in development, good governance);

Washington Consensus, Post WC, and... ;

development, governance, and institutions (with proper understanding

of time frameworks);

Provision of pure and impure public goods (EFA, environment

protection, etc.)

4.0 Globalization and Development

 Development with Globalization: Big Picture

Accumulated wisdom and empirical findings on the P-G-I Triangle under

Globalization.

5.0 Socio-Economic Development

sustainable development (the environment and development)

education, HRD, and development

social capital for development

1.4 Assessment
Continuous Assessment 20%
Research 30%
Final Examination 50%

1.5 Prescribed Textbook

1. Ray D. 1998. Development Economics, Princeton University Press

1.6 Recommended Textbooks

1. Banerjee A. & Duflo E. 2012. Poor Economics, Public Affairs, Oxford:
Oxford University Press,
2. Michael P. Todaro, Stephen C. Smith. 2015. Economic Development,
Addison Wesley, Pearson.
3. Banerjee A. and Mookherjee D. 2006. Understanding Poverty,
Oxford University Press.
4. Ray, D. Development Economics. Princeton University Press, 1998.
5. Bardhan, P. 2000. Development Microeconomics. Oxford University
Press: New York.
6. Deaton, A. 1997. The Analysis of Household Surveys: A
Microeconometric
7. Approach to Development Policy. Johns Hopkins University Press:
Baltimore, Maryland.
8. Mookherjee, D. 2000. Introduction to Readings in the Theory of
Economic Development, London: Blackwell.
9. Parente, Stephen and Prescott E. 2000. Barriers to Riches,
Cambridge, MA: The MIT Press.

10. Genicot, G. 2015. Aspirations and Inequality, mimeo, New

York University.

11. Mani A. 2011. Poverty and Aspirations Failure, mimeo,

Tilburg University, CAGE.

12. Shankha C. 2013. Twin Transitions, mimeo, University of

Oregon.

13. Levine, R. 2005. Finance and Growth: Theory and

Evidence, Handbook of Economic Growth, Vol. 1A, Amserdam:
Elsevier, 865-934.

14. Demirguc-Kunt A. 2001. Financial Structure and Economic

Growth: A Cross-Country Comparison of Bank, Markets, and
Development, Cambridge: MIT Press.