Economic Development Policy

The Graduate Program in
International Political Economy and Development

ECGA 5015 ECONOMIC DEVELOPMENT POLICY

Instructor: Dr. Henry Schwalbenberg

Description: This core IPED course uses economic methodology to examine the interaction between political and economic institutions in the determination of economic development policy. Topics covered may include: surplus labor, unemployment, income distribution, land reform, trade, growth, population, and North-South capital flows. This course is designed to be taken in tandem with POGA 6530 Political Economy of Development. The prerequisite for this course is ECGA 5011 or its equivalent.

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Syllabus

Syllabus 2008

Readings (Until the problems with the library's electronic reserve are resolved, articles will be posted here. Please be aware of copyright restrictions regarding their use.)

Introduction
Schwalbenberg (1998). "The Ricardo Viner Model (Labor Market)."
Schwalbenberg (1991). "Economic Development Policies."
Griffin and Gurley (1985). "Radical Analyses of Imperialism, The Third World, and the Transisiton to Socialism: A Survery Article."
Reynolds (1983). "The Spread of Economic Growth to the Third World: 1850-1980."
Wellisz and Findlay (1988). "The State and the Invisible Hand."
Grindle (1991). "The New Political Economy: Positive Economics and Negative Politics."
Ruttan (1991). "What Happened to Political Development?"
Lewis Model of Surplus Labor
Lewis (1954). "Economic Development with Unlimited Supplies of Labour."
Ranis and Fei (1961). "A Theory of Economic Development."
Schultz (1964). "The Doctrine of Agricultural Labor of Zero Value."
Equity
Kuznets (1955). "Economic Growth and Income Inequality."
Pfeffermann (1991). "Poverty Alleviation."
Srinivasan (1994). "Destitution: A Discourse."
Fields (1994). "Data for Measuring Poverty and Inequality Changes in the Developing Countries."
Chang and Ram (2000). "Level of Development, Rate of Economic Growth, and Income Inequality."
Partridge (1997). "Is Inequality Harmful for Growth? Comment."
Forsythe, Korzeniewicz and Durrant (2000). "Gender Inequalities and Economic Growth: A Longitudinal Evaluation."
Harris-Todaro Model of Migration and Unemployment
Todaro (1971). "A Model of Rural-Urban Migration."
Harris and Todaro (1970). "Migration, Unemployment and Development: A Two-Sector Analysis."
Cole and Sanders (1985). "Internal Migration and Urban Employment in the Third World."
Schwalbenberg (1994). "Economic Growth and the Rise of Protectionism and Urban Unrest in Developing Economies."
Freeman (1993). "Labor Markets and Institutions in Economic Development."
Marcouiller and Young (1995). "The Black Hole of Graft: The Predatory State and the Informal Economy."
Park and Johnston (1995). "Rural Development and Dynamic Externalities in Taiwan's Structural Transformation."
Trade Policies
Bhagwati (1958). "Immiserizing Growth: A Geometric Note."
Prebisch (1959). "International Trade and Paymensts in an Era of Coexistence: Commerical Policy in the Underdeveloped Countries."
Diakosavvas and Scandizzo (1991). "Trends in the Terms of Trade of Primary Commodities, 1900-1982: The Controversy and Its Origins."
Clark (1998). "Are Poorer Countries the Targets of US Protectionist Actions?"
Srinivasan (1991). "Foreign Trade Regimes."
Dornbusch (1992). "The Case for Trade Liberalization in Developing Countries."
Edwards (1993). "Openness, Trade Liberalization and Growth in Developing Countries."
Rodrik (1996). "Understanding Economic Policy Reform."
Krueger (1997). "Trade Policy and Economic Development: How We Learn."
Westphal (1990). "Industrial Policy in an Export-Propelled Economy."
Hill (1996). "Indonesia's Industrial Policy and Performance: 'Orthodoxy' Vindicated."
Bruton (1998). "A Reconsideration of Import Substitution."
Growth Policies
North (1994). "Economic Performance Through Time (Nobel Lecture)."
Harrod (1939). "An Essay in Dynamic Theory."
Domar (1946). "Capital Expansion, Rate of Growth, and Employment."
Solow (1956). "A Contribution to the Theory of Growth."
Solow (1988). "Growth Theory and After (Nobel Lecture)."
Griliches (1996). "The Discovery of the Residual: A Historical Note."
Jones (1997). "On the Evolution of the World Income Distribution."
Grossman and Helpman (1994). "Endogenous Innovation in the Theory of Growth."
Datta-Chaudhuri (1990). "Market Failure and Government Failure."
Krugman (1994). "The Myth of Asia's Miracle."
Przeworski and Limongi (1993). "Political Regimes and Economic Growth."
de Haan and Siermann (1996). "Political Instability, Freedom, and Economic Growth."
Levine and Renelt (1992). "A Sensitivity analysis of Cross-Country Growth Regressions."
Population Policy
Malthus (1798). "An Essay on the Principle of Population."
Becker (1965). "Theory of the Allocation of Time."
Becker (1988). "Family Economics and Macro Behavior."
Becker (1993). "Nobel Lecture: The Economic Way of Looking at Behavior."
Birdsall (1988). "Economic Approaches to Population Growth."
Dasgupta (1995). "The Population Problem: Theory and Evidence."
Subbarao and Raney (1995). "Social Gains from Female Education: A Cross-National Study."
Schultz (1980). "Nobel Lecture: The Economics of Being Poor."
Schultz (1994). "Human Capital, Family Planning, and Their Effects on Population Growth."

Problem Sets (Answers are posted only after homework is due, otherwise only the questions are posted.)

Problem Set #1 Ricardo-Viner Model: Labor Market	Problem Set #6 Ricardo-Viner Model: Goods Market	Problem Set #11 Population Policy
Problem Set #2 Lewis Model	Problem Set #7 Trade and Income Distribution	Problem Set #12 Foreign Investment and Economic Aid
Problem Set #3 Equity Issues	Problem Set #8 Import Substitution versus Trade Promotion	Problem Set #13 Political Aid and Sovereign Debt
Problem Set #4 Harris-Todaro Model	Problem Set #9 Harrod-Domar Model
Problem Set #5 Capital Formation and Urban Strife	Problem Set #10 Solow Model

Empirical Project

Each student must complete one empirical study testing whether or not some variable is correlated with some measure of development. Various data can be found in UNDP, Human Development Report, Oxford University Press, various years or in World Bank, World Development Report, Oxford University Press, various years. Data from UNDP's Human Development Report is available on the web at hdr.undp.org. Data from the World Bank's World Development Report is available on CD. It can be found in the Library's web site under "Indexes, Abstracts and Databases - Business and Economics." But because it is a CD it will only work in the library buildings. The World Development Report is also available on the web at econ.worldbank.org/wdr/.

As an example of what is expected see the following sample empirical study that estimates the effect of access to safe water on infant mortality rates in the developing world.

The Graduate Program in International Political Economy and Development