LAHORE UNIVERSITY OF MANAGEMENT SCIENCES MSc Economics Programme

Transcription

1 LAHORE UNIVERSITY OF MANAGEMENT SCIENCES MSc Economics Programme ECON 541: TOPICS IN DEVELOPMENT ECONOMICS Spring Prof. Abid A. Burki Phone: , Ext Office: Room 248, Academic Block Office Hours: Tue and Thu, hours Meetings: Tue and Thu, in A-2 Course Description: This course is concerned with the economic analysis of selected topics in development economics. This course combines reviews of theoretical issues with empirical readings to provide a better understanding of the major public policy challenges facing the emerging and developing countries. The course assumes strong grounding in microeconomics, macroeconomics, and econometrics. Some of the course material gives emphasis on empirical applications; therefore, knowledge of econometrics will be essential. The emphasis of the course is on the interpretation and evaluation of theoretical and empirical evidence relevant for the conduct of policies in developing countries. Among the topics addressed are concepts and approaches of development economics; understanding patterns of economic growth; sources of growth rate differences; income polarization; poverty; child labour and child schooling; trade, development and the multilateral trading system; microfinance; and aid and development. There is no textbook for the course, and most of the readings are from journal articles and chapters in books. Background Reading: If you have never taken a course in development economics, you may want to familiarize yourself with the characteristics of developing countries and the basic models of development economics from the following undergraduate text. Ray, Debraj (1998). Development Economics. New Jersey: Princeton University Press. Grading Policy: The course grade depends on two home works (10%) a research paper (30%), in-class mid-term (30%), and final exam (30%). 1

2 Syllabus and Reading Assignments (* indicates required reading) 1. Concepts and Approaches to Development Economics: *Ruttan, V.W. (1998). The New Growth Theory and Development Economics: A Survey. Journal of Development Studies. 35(2), Understanding Patterns of Economic Growth: *Barro, R., and X. Sala-i-Martin (1995). Economic Growth. New York: McGraw Hill International Editions. Chapter 1. *Romer, D. (2001). Advanced Macroeconomics. Second Edition. New York: McGraw-Hill Company. Chapter 1 *Jones, C. (1997). On the Evolution of the World Income Distribution. Journal of Economic Perspectives. 11(3), Anand, S., and P. Segal (2008). What Do We Know about Global Income Inequality? Journal of Economic Literature, 66(1), *Pritchett, L. (1997). Divergence, Big Time. Journal of Economic Perspectives. 11(3), Sources of Growth Rate Differences: Reynolds, L. (1983). The Spread of Economic Growth to the Third World, Journal of Economic Literature. 21(3), *Young, A. (1995). The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience. Quarterly Journal of Economics. 110(3), *Fare, R., S. Grosskopf, M. Norrris and Z. Zhang (1994). Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries. American Economic Review. 84(1), *Epstein, P., P. Howlett, M.S. Schulze (2007). Trade, Convergence, and Globalisation: The Dynamics of the International Income Distribution, Explorations in Economic History, 44, *Kruger, Jens J. (2003). The Global Trends of Total Factor Productivity: Evidence from the Nonparametric Malmquist Index Approach, Oxford Economic Papers, 55, 2, Income Inequality and Income Polarization: Duro, J.A. (2005). Another Look to Income Polarization across Countries. Journal of Policy Modeling. 27, *Federov, L. (2002). Regional Inequality and Regional Polarization in Russia, World Development. 30, *Seshanna, S., and S. Decornez (2003). Income Polarization and Inequality across Countries: An Empirical Study. Journal of Policy Modeling. 25, Wolfson, M. (1994). When Income Inequalities Diverge. American Economic Review. 84(2), Zhang, X., and K. Zhang (2003). How Does Globalization Affect Regional Inequality Within a Developing Country? Evidence from China. Journal of Development Studies. 39,

3 5. Poverty: Basu, K. (2006). Globalization, Poverty, and Inequality: What is the Relationship? What Can Be Done? World Development. 34(8), *Deaton, A. (2001). Counting the World s Poor: Problems and Possible Solutions. World Bank Research Observer. 16(2), Ravallion, M. (2006). Looking Beyond Averages in the Trade and Poverty Debate. World Development. 34(8), Ravallion, M. (2002). On the Urbanization of Poverty. Journal of Development Economics. 68, *Ravallion, M., and G. Datt (2002). Why Has Economic Growth been more Pro-poor in Some States of India than Others? Journal of Development Economics. 68, *Ravallion, M., S. Chen (2007). China s (uneven) Progress Against Poverty. Journal of Development Economics, 82, Muller, C. (2002). Prices and Living Standards: Evidence from Rwanda. Journal of Development Economics. 68, Thorbecke, E., and M. Nissanke (2006). Introduction: The Impact of Globalization on the World s Poor. World Development. 34(8), Child Labour and Child Schooling: *Bacolod, Marigee P., Priya Ranjan (2008). Why Child Work, Attend School, or Stay Idle: The Roles of Ability and Household Wealth, Economic Development and Cultural Change, 56(4), Basu, K., P.H. Van (1999). The Economics of Child Labor. American Economic Review. 88, Basu, K. (2000). The Intriguing Relation Between Adult Minimum Wage and Child Labour. Economic Journal. 110, C50-C61. Beegle, K., R.H. Dehejia, and R. Gatti (2006). Child Labor and Agricultural Shocks. Journal of Development Economics. 81, *Edmonds, E.V., N. Pavcnik (2005). The Effect of Trade Liberalization on Child Labor, Journal of International Economics, 65, *Fafchamps, M., and J. Wahba (2006). Child Labor, Urban Proximity, and Household Composition. Journal of Development Economics. 79, Kambhampati, Uma S., and R. Rajan (2006). Economic Growth: A Panacea for Child Labor? World Development. 34(3), *Kruger, Diana I. (2007). Coffee Production Effects on Child Labor and Schooling in Rural Brazil. Journal of Development Economics. 82, Trade, Development and the Multilateral Trading System: *Berg, A., and A. Krueger (2003). Trade, Growth, and Poverty: A Selective Survey. IMF Working Paper WP/03/30. *Bhagwati, J., and T.N. Srinivasan (2002). Trade and Poverty in the Poor Countries. American Economic Association Papers and Proceedings, 92(2), Dollar, D., and A. Kraay (2001). Trade, Growth and Poverty. World Bank Policy Research Department Working Paper No Washington, D.C.: The World Bank. *Duncan, R., and D. Quang (2002). Trade Liberalization, Economic Growth and Poverty Reduction Strategies. November. Canberra: AusAID. 3

4 Edwards, S. (1998). Openness, Productivity and Growth: What Do We Really Know? Economic Journal, 108, Microfinance: *Cull, R., A. Demirguc-Kunt and J. Morduch (2009). Microfinance Meets the Market, Journal of Economic Perspectives, 23(1), *Morduch, J. (1999). The Microfinance Promise. Journal of Economic Literature. 37(4), *Pitt, Mark M., and Shahidur R. Khandker (1998). The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter? Journal of Political Economy. 106(5), Sajeda, A., A.S. Rai and G. Topa (2003). Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangladesh. Journal of Development Economics. 70, Aid and Development: *Barro, Robert J., and Jong-Wha Lee (2005). IMF Programs: Who is Chosen and What Are the Effects? Journal of Monetary Economics, 52(7), *Dollar, D., V. Levin (2006). The Increasing Selectivity of Foreign Aid, World Development. 34(12), Course Schedule and Reading Assignments Session Topic Reading Assignments* 1 Concepts/Approaches of Development Ruttan, Economic Growth Barro & Sala-i-Martin, Chapter 1 Romer, Chapter 1 3 -do- 4 Understanding Patterns of Economic Growth Jones, do- Pritchett, Sources of Growth Rate Differences Reynolds, do- Young, do- Epstein et al., do- Fare et al., Income Inequality & Income Polarization Seshanna and Decornez, do- Federov,

5 12 Poverty Deaton, do- Ravallion and Datt, do- Ravallion and Chen, do- Ravallion and Chen, Mid-term Exam 17 Child labor and Child Schooling Bacolod et al., do- Kruger, do- Fafchamps and Wahba, do- Edmonds and Pavcnik, do- 22 Trade, Development and Multilateral Trading Duncan and Quang, 1 45 System 23 -do- Berg and Krueger, 1 50 Bhagwati and Srinivasan, Microfinance Murdoch, do- Pitt and Khandker, do- Cull et al., Aid and Development Barro and Lee, do- Dollar and Levin, Final Examination Additional readings may be assigned if necessary. 5