We survey topics in Development Economics. The course will focus on a balance of theory and empirics through academic papers that introduce students to current research methodologies.
Session 1: Institutions
Session 2: Entrepreneurship Development
Session 3: Agriculture and rural development
Session 4: Health
Session 5: Growth Theory
Session 6: Debate for Development and Growth
Session 7: Trade and Development
Session 8: Foreign Direct Investment
Session 9: Income Distribution, Trade, and Globalization
Session 10: Markets for Factor Inputs Group 5’s Paper Presentation.
Session 11: Investment, Time, and Capital Markets Group 6’s Paper Presentation.
Session 12: Revision
Final grade assessment will be based on the following allocation:
- Group Assignment: 50%
- Final Exam: 50%
The Group Assignment is a replication exercise. Students should divide into 6 or 7 groups each with 6-8 students. We cover 9 broad topics in this Development Economics course. Each group will be assigned a topic and will choose a paper from which to replicate some of the tables in the paper. The replication can be done with the same exact data as the original paper or with a different dataset (for example: different year, different country, etc.)
- Andrei Schleifer and Robert Vishny (1993) “Corruption,” Quarterly Journal of Economics, Vol. 108, No. 3, pp. 599-617.
- Paolo Mauro (1995) “Corruption and Growth,” Quarterly Journal of Economics, Vol. 110, No. 3, pp. 681-712.
- Daron Acemoglu, Simon Johnson and James A. Robinson (2001) “The Colonial Origins of Comparative Development: An Empirical Investigation,” Vol. 91, 5, pp. 1369-1401.
- Abhijit Banerjee and Esther Duflo (2011), Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty, Public Affairs. Chapter 7: “The Men from Kabul and the Eunuchs of India: The (Not So) Simple Economics of Lending to the Poor”
- Abhijit Banerjee and Esther Duflo (2011), Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty, Public Affairs. Chapter 9: “Reluctant Entrepreneurs”
- Mendez-Picazo, M-T., M-A Galindo-Martin, D. Ribeiro-Soriano (2012), “Governance, Entrepreneurship and Economic Growth”, Entrepreneurship & Regional Development 24: no. 9-10: 865-877
- Naude, W. (2010), “Entrepreneurship, Developing Countries, and Development Economics: New approaches and insights”, Small Business Economics 34: 1-12.
- Global Entrepreneurship Monitor: Vietnam Report 2014, VCCI.
- Raven, Peter, and Quan Le (2015) “Teaching Business Skills to Women: Impact of Business Training on Women’s Microenterprise Owners in Vietnam”, International Journal of Entrepreneurial Behaviour & Research, 21(4): 622-641.
- Le, Quan, and Peter Raven (2016) “The Influence of Entrepreneurial Behaviors on the Performance and Outlook of Female Entrepreneurs in Vietnam”, Working Paper.
- TS Chs. 9. (E-learning)
- Eswaran, M & Kotwal, A 2006, ‘The role of agriculture in development’, Understanding poverty, pp. 111-23.
- Gilligan, DO & Hoddinott, J 2007, ‘Is there persistence in the impact of emergency food aid? Evidence on consumption, food security, and assets in rural Ethiopia’, American Journal of Agricultural Economics, vol. 89, no. 2, pp. 225-42.
- TS Chs. 8. (E-learning)
- Miguel, E. and M.Kremer (2004). Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities. Econometrica 72 (1):159-217.
- Cutler D., A.Deaton and A.Lleras-Muney (2006). The Determinants of Mortality. Journal of Economic Perspectives 20(3), pp. 97-120.
- Strauss, J. and D.Thomas (1998). Health, Nutrition, and Economic Development. Journal of Economic Literature 36(2):766-817.
- Perkins, Dwight, Steven Radelet and David Lindauer, Economics of Development (Sixth Edition), New York, 2006: chapters 3 and 4. (E-learning)
- Easterly, William, “The Ghost of Financing Gap: How the Harrod-Domar Model Still Haunts Development Economics,” Journal of Development Economics, 60 (2), December, 1999, 423-438.
- Lucas, Robert E, Jr., “Trade and the Diffusion of the Industrial Revolution,” American Economic Journal: Macroeconomics, 2009, 1/1, 1-25.
- Mankiw, N. G., D. Romer, and D. Weil. “A Contribution to the Empirics of Economic Growth.”Quarterly Journal of Economics107 (1992): 401-437. (E-learning)
- Riedel, James, et. al., How China Grows: Investment, Finance, and Reform (Princeton University Press, 2007), Chapter 2. (E-learning)
- Young, Alwyn, “The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience,” Quarterly Journal of Economics, Volume 110 (3), August 1995, 641-680.
- Diamond, Jared, Guns, Germs and Steel: The Fates of Human Societies, 1999 (E-learning)
- Acemoglu, Daron and James Robinson, “Why Nations Fail: The Origins of Power, Prosperity, and Poverty, 2012. (E-learning)
- Acemoglu, Daron, Simon Johnson and James Robinson, “Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution,” Quarterly Journal of Economics, 117, no. 4 (November 2002) 1231-1294. (E-learning)
- Jeffery D. The End of Poverty: Sachs, Economic Possibilities for our Time. 2008 (E-learning)
- Todaro Smith Ch.12 (Background) (E-learning)
- Rudi Dornbusch, Stanley Fischer, and Paul Samuelson (1977), “Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods,” American Economic Review, Vol. 67, No. 5, pp. 823-839. (Theory)
- Wan Y.H. Jr. (2004). Economic Development in a Globalized Environment, Springer, 2004, Ch.1. (Theory)
- Jeffrey A. Frankel and David Romer. (1999). “Does Trade Cause Growth?” American Economic Review, Vol. 89, No. 3, pp. 379-399. (Tools: IV Regression, Openness Index; Data: Cross Country Aggregate)
- Ricardo Hausmann, Jason Hwang, and Dani Rodrik. (2007). “What you Export Matters,” Journal of Economic Growth, vol.12, pp.1-25. (Tools: Complexity Index; Data: UN Comtrade Bilateral Trade by commodity)
- Mary Amiti and Jozef Konings (2007) “Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia,” American Economic Review, Vol. 97, No. 5, pp. 1611-1638. (Tools: Olley Pakes Regression; Data: Enterprise Data)
- Arnaud Costinot, Jonathan Vogel, and Su Wang (2013) “An Elementary Theory of Global Supply Chains,” Review of Economic Studies, Vol. 80, pp. 109–144. (Advanced Theory)
- Brian Aitken and Ann Harrison. (1999). “Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela,” American Economic Review, 89(3), 605-618. (Tools: FDI Exposure Measures, Fixed Effects; Data: Enterprise Data)
- Beata Javorcik. (2004). “Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages,” American Economic Review, 94(3), 605-627. (Tools: Forward/Backward Linkage Indices, Olley Pakes Regression; Data: Enterprise Data)
- Steven Poelhekke and Frederick van der Ploeg (2013) “Do Natural Resources Attract Nonresource FDI?” Review of Economics and Statistics, vol. 95, no. 3, pp. 1046–1065.
- Todaro Smith Ch.5, pages 204-210, 219-228 (measures of inequality) (E-learning)
- Alberto Alesina Dani Rodrik (1994) Distributive Politics and Economic Growth, Quarterly Journal of Economics, Volume 109, Issue 2, Pages 465-490. (Cross Country Regression).
- Bruno Martorano, Donghyun Park, and Marco Sanfilippo (2017) “Catching-up, structural transformation, and inequality: industry-level evidence from Asia, Industrial and Corporate Change, Volume 26, Issue 4, pp. 555–570.
- Torsten Persson and Guido Tabellini (1994) “Is Inequality Harmful for Growth?” American Economic Review, Vol. 84, No. 3, pp. 600-621 (Theory, Cross Country Regression).
- Krugman and Obstfeld, International Economics, 6th ed., “Ch.3: Specific Factors and Income Distribution,” pages 38-60. (Theory)
- Dani Rodrik (1997) Has Globalization Gone Too Far, “Chapter 2: Consequences of Trade for Labor Markets and the Employment Relationship,” Petersen Institute for International Economics. (
- “The U.S. Current Account Deficit” (2017) Harvard Business School Case No. 706002.