Development has always been one of the most lively and challenging areas in economics. Over the last decades there have been advances in economic theory and econometric methods that have allowed development economists to review some age-old questions. Why do some countries grow faster than others? Why are inequality and poverty important for economic development? Should governments encourage migration from rural to urban areas? How can we deal with urban poverty? Do poor people make the wrong decisions? Why are interest rates higher in rural than in urban areas? Is trade protection good for development? Does development aid work? This course will introduce you to these advances and give you a feel of the current debates. This course will take you through an exciting journey that will acquaint you with new ideas and new ways of answering fundamental questions about the economics of poor societies and the process of economic development.
1. Introduction to economic development. Concept and measurement. The scientific method. 2. Economic growth. The Neoclassical growth model and alternative growth models. Endogenous growth. Empirical evidence. Conditional convergence. 3. Economic inequality, poverty and development. 4. Population and development. The dual economy. Rural-urban migration. 5. Rural markets: land, labour, capital, and insurance. 6. International trade, international finance, and development. 7. Development policy.
Ray, D. (1998). Development economics. Princeton University Press; Basu, K. (2003). Analytical development economics: the less developed economy revisited. MIT Press; Banerjee, A. & E. Duflo (2012). Poor Economics. Public Affairs; Thirlwall, A.P. (2011). Economics of development. Palgrave Macmillan.