University of Colorado at Boulder Professor Barry W. Poulson Office: ECON 108 Office Hours: MWF 11:00-12:00

Required Readings

Seminar in Economic Development Economics 8784 Fall 2000

Topics that we will be discussing in the seminar are identified with an *. The first part of the assignment for these topics is required reading for all members of the seminar. These readings are drawn from the following required texts and provide an overall survey of the issue.

Lal and Myint, The Political Economy of Poverty, Equity, and Growth.

T.N. Srinivasan and Hollis Chenery, Editors, Handbook of Economic Development Volumes I and II (these required texts are referred to as "Handbook" in the syllabus). Note that the Handbook of Economic Development is a four volume set of books published by North Holland. Required readings for the seminar are in volumes I and II; optional readings are in volumes III and IV. The books are expensive so you may want to plan on using the copies in the Reserve Room of Norlin Library)

Assigned Readings

The second part of the assignment involves journal articles that will be assigned to individual members of the seminar. The student will be required to provide a one to two page summary of the article to members of the seminar, and to make an oral presentation critically evaluating the article. These journal articles explore controversial issues relating to the topic, involving empirical as well as theoretical contributions.

Optional Readings

Additional topics with optional readings are listed to assist students in identifying current research issues, and in identifying possible topics for research papers. These include readings from Jere Behrman and T.N. Srinivasan, Editors Handbook of Economic Development Volumes III and IV.

Research Paper

Each student is required to write and present a research paper for the course. The research paper should focus on an issue in development economics, preferably stated as a verifiable hypothesis. The paper does not have to represent completed research, but rather lay the groundwork for such research. Specifically the paper should include a discussion of the relevant literature on the issue; a statement of the methodology required to conduct the research; and, if the paper has empirical content, an initial exploration of the data required to conduct the research.

Schedule

Aug. 28-Sept. 15 I Economic Growth and Development

Sept. 18-29 II Human resources

Oct. 2- 13 III Capital resources

Oct. 16-27 IV Industrial Structure

Oct. 30- Nov. 10 V Trade

Nov. 13-24 VI Political Economy

Nov. 27- Dec. 13 VII Income Distribution, Poverty, and Social Welfare

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I Economic Growth and Development

IA. Neoclassical Growth Models*

Required Readings:

Lal and Myint, Chapter 2: I and II

IB. Endogenous Growth Models*

Required Readings:

Lal and Myint, Chapter 2: III and IV

Assigned Readings:

Xioshen Diao et. al.," Strategic Policies and growth: an applied model of R & D-driven endogenous growth," JDE v60, 1999, 343-380.

Robert Feenstra et. al., "Testing endogenous growth in South Korea and Taiwan," JDE v60, 1999, 317-341. De Gregoria, "Economic growth in Latin America," JDE v39 nol , July 1992, 59-85.

Edwards, "Trade orientations, distortions, and growth in developing countries," JDE 39, July, 31-57.

Optional Readings:

"Handbook" Chapter 46 Bardhan, "The contributions of endogenous growth theory to the analysis of development problems: an assessment"

IC. The Three Factor Open Economy Growth Framework*

Required Readings:

Lal and Myint, Chapter 2: V

Assigned Readings:

Leamer, et. al., "Does natural resource abundance increase Latin American income inequality?" JDE v59, 1999, 3-42.

Sachs and Warner, "The big push, natural resource booms, and growth," JDE v59, 1999, 43-76.

Spilirnbergo, et al, "Income distribution, factor endowments, and trade openness," JDE v59, 1999, 77-101.

Beyer et. al., "Trade liberalization and wage inequality," JDE v59, 1999, 103-123. Harrison and Hansen, "Who gains from trade reform? Some remaining puzzles," JDE v59, 1999, 125-

154.

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Optional Readings:

Leamer, "Patterns of development in the three factor n-good general equilibrium model." JPE v95/5, Oct. 1987, 961-99.

Poulson, "Purely animal: pastoral production and early Argentine economic growth 1825-1865," with Carlos Newland, Explorations in Economic History 35, 1998, 325-345.

Engerman and Sokoloff, "Factor endowments, institutions, and differential paths of growth among new world economies," in Haber S. (Ed.) How Latin America Fell Behind: Essays on the Economic History of Brazil and Mexico, 1800-1914, Stanford University Press 1997.

ID. Alternative Growth Models

Optional Readings:

"Handbook" Srinivasan, "Introduction to Part l" "Handbook" Chapter 2 Lewis, "The Roots of Development Theory" "Handbook" Chapter 3 Bardhan, "Alternative Approaches to Development Economics" "Handbook" Chapter 4 Ranis, "Analytics of Development: Dualism"

Farhang and Nissan, "Comparative analysis of dualistic growth," JED vl6 no2, Dec 1991, 61-75. Taylor, "Gap Models," JDE v45, 1994, 17-34. Rauch, "Balanced and Unbalanced Growth," JDE v53 nol , June 1997.

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II Human Resources

IIA. Demographic Change and Economic Growth*

Required Readings:

"Handbook" Introduction to Part 3 by Srinivasan "Handbook" Chapter 12 Birdsall, "Economic Approaches to Population Growth"

Assigned Readings:

Bloom and Williamson, "Demographic Transitions and Economic Miracles in Emerging Asia," NEER Working Paper No. 6268, November 1997.

Donaldson, "Fertility patterns of the transition onset: insights of the living standard model," JED v16 no2, Dec 1991.

Crimmins, Easterlin, Jejeebhoy, and Srinivasan, "New perspectives on the demographic transition: a theoretical and empirical analysis ofan Indian state, 1951-1975," Economic Development and Cultural Change v32, 1984, 227-253.

IIB. Migration and Urbanization*

Required Readings:

"Handbook" Chapter 11 Williamson, "Migration and Urbanization"

Assigned Readings:

Gupta, "Foreign capital, income inequality, and welfare in a Harris Todaro model," JDE v45, 1994, 407-414.

Vyerben and Zeager, "Comparing earnings profiles in urban areas of an LDC: rural to urban migrants versus native workers," JDE v45, 1994, 177-199.

Vernon Henderson, "Urbanization in a developing country; city size and population composition," JDE, July Aug 1986.

L.A. Lanzona, "Migration, self-selection and earnings in Philippine rural communities," Journal of Development Economics 56 (1), 1998, 27-50.

S.M. Ashan and A.G. Ali, "Income taxation migration and work incentives in a dual economy model," DE, Mar 1985.

Ulack, "Ties to origin remittances and mobility evidence from rural and urban areas in the Philippines," JDA, April 1986.

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IIC. International Migration

Optional Readings:

S. Djajic, "Emigration and welfare in an economy with foreign capital," Journal of Development Economics 56 (2), 1998.

G.J. Borjas, "The earnings of Mexican immigrants in the United States," Journal of Development Economics 51 (1), 1996, 69-98.

C. Dustmann, "Return migration, uncertainty and precautionary savings," Journal of Development Economics 52 (2), 1997, 295-316.

Ilahi and Jafarey, "Guestworker, migration, remittances and the extended family: evidence from Pakistan," JDE v58, 1999, 485-512.

IID. Labor Markets*

Required Readings:

"Handbook" Chapter 15 Mark Rosenzweig, "Labor Markets in Low Income Countries"

Assigned Readings:

Yao, "Rural industry and labor market integration in Eastern China," JDE v59, 1999, 463-496. Richards, "The Egyptian labor market revisited," JDE v43 no2, April 1994, 239-263. Basch and Paredes, "Are there dual labor markets in Chile," JDE v50 no2, Aug 1996.

R. Assaad, "Kinship ties, social networks, and segmented labor markets: evidence from the construction sector in Egypt," Journal of Development Economics 52 (1 ), 1997, 1-30.

IIE. Wage Determination

Optional Readings:

Francis Teal, "Real wages and the demand for skilled and unskilled male labour in Ghana's manufacturing section 1991-1995," JDE v61 , 2000, 447-461.

Shariff et. al., "Forward falling labor supply implications for wage rigidity unemployment and plan failure," JEDv20 nol , June 1995, 91-113.

Ezeala-Harrison, "An application of the efficiency-wage hypothesis to the modeling of LDC labor problems," JDE, June 1988.

Swamy, "A simple test of the nutrition based efficiency wage hypothesis," JDE v53 nol, June 1997.

A.D. Velenchik, "Government intervention, efficiency wages, and the employer size wage effect in Zimbabwe," Journal of Development Economics 53 (2), 1997, 305-338.

J.A. Schaffner, "Premiums to employment in larger establishments: evidence from Peru," Journal of Development Economics 55 (1), 1998, 81-113.

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E. Funkhouser, "The importance of firm wage differentials in explaining hourly earnings variation in the large-scale sector of Guatemala," Journal of Development Economics 55 (1), 1998, 115-131.

M.I. Cragg, M. Epelbaum, "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?" Journal of Development Economics 51 (I), 1996, 99-116.

IIF. Education and Human Capital*

Required Readings:

"Handbook" Chapter 13 Schultz, "Education Investments and Returns"

Assigned Readings:

Sarson S. Bodi and Ashish Garg, "The effectiveness of private versus public schools: the case of Indonesia," JDE v61, 2000, 463-494.

Funkhauser, "Changes in the return to education in Costa Rica," JDE v57, 1998, 289-317.

Li and Zhang, "Returns to education under collective and household farming in China," JDE v56, 1998, 307-335.

Lundquist, "Economic development: the case of a missing market for human capital," JDE v40 no2, April 1993, 219-241.

Cox and Jimong, "The relative effectiveness of private and public schools: evidence from two developing countries," JDE v34, 1991 , 99-121

K. Flug, A. Spilimbergo, E. Wachtenheim, "Investment in education: do economic volatility and credit constraints matter?" Journal of Development Economics 55 (2), 1998, 465-481.

K. Jinyoung, "Economic analysis of foreign education and students abroad, Journal of Development Economics 56 (2), 1998, 337-365.

P. Glewwe, "The relevance of standard estimates of rates of return to schooling for education policy: a critical assessment," Journal of Development Economics 51 (2), 1996, 267-290.

V. Lavy, "School supply constraints and children's educational outcomes in rural Ghana," Journal of Development Economics 51 (2), 1996, 291-314.

Glomm, "Parental Choice of Human Capital Investment," JDE v53 nol, June 1997 L. Tianyou, Z. Junsen, "Returns to education under collective and household farming in China," Journal

of Development Economics 56 (2), 1998, 307-335.

Optional Readings:

"Handbook" Chapter 34 Strauss and Thomas, "Human Resources: Empirical Modeling of Household and Family Decisions"

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IIG. Health and Hwnan Capital*

Required Readings:

"Handbook" Chapter 14 Behrman and Deolalikar, "Health and Nutrition"

Assigned Readings:

Thomas and Straus, "Prices infrastructure, household characteristics and child height," JDE v39 no2, Oct 1992, 301-333.

Cebu study team, "A child health production function estimated from longitudinal data," JDE v38 no2, April 1992, 323-353.

Barerra, "The interactive effects of mothers schooling and unsupplemented breast feeding on child health," JDE v34, 1991, 81-98.

Barrera, "The role of maternal schooling and its interaction with public health programs in child health production," JDE v32, 1990, 69-91.

Thomas et. al., "Child survival, height for age and household characteristics in Brazil," JDE v33, 1990, 197-234.

Handa, "Expenditure behavior and children's welfare: an analysis of female headed households in Jamaica," JDE v50 nol, June 1996.

T.P. Schultz, A. Tansel, "Wage and labor supply effects of illness in Cote d'Ivoire and Ghana: instrumental variable estimates for days disabled," Journal of Development Economics 53 (2), 1997, 251-286.

IIH. Determinants of Fertility and Mortality

Optional Readings:

D.K. Guilkey, R.T. Riphahn, "The determinants of child mortality in the Philippines: estimation of a structural model," Journal of Development Economics 56 (2), 1998, 281-305.

Rosenzweig and Wolpin, "Evaluating the effects of optimally distributed public programs: Child health and family planning interventions," AER v76 no3, June 1986, 470-482.

Rosenzweig and Wolpin, "Governmental interventions and household behavior in a developing country," JDE vlO, 1982, 209-225.

Rosenzweig and Schultz, "Market opportunities, genetic endowments, and intrafamily distribution: child survival in rural India," AER v72 no4, September 1982, 803-815.

Rosenzweig and Evenson, "Fertility, schooling, and the economic contribution of children in rural India: an econometric analysis," Econometrica v45 no5, July 1977, 1065-1079.

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III Capital Resources

IIIA. Savings and Capital Formation *

Required Readings:

"Handbook" Chapter 10 Mark Gersovitz, "Savings and Capital Formation"

Assigned Readings:

Klaus Schrnidt-Hebbel and Luis Sprupk, "Does income inequality raise aggregate saving?" JDE v61, 2000, 417-446.

Cardenas and Escobar, "Saving determinants in Colombia: 1925-1994," JDE v57, 1998, 5-45. Reinhart and Talvi, "Capital flows and saving in Latin America and Asia: a reinterpretation," JDE v57,

1998, 45-67. Aizenman and Powell, "The political economy of public saving and the role of capital mobility," JDE

v57, 1998, 67-97.

Lopez Murphy and Navajas, "Domestic savings, public savings, and expenditures on consumer durable goods in Argentina," JDE v57, 1998, 97-117.

Taylor, "Argentina and the world capital market: saving investment, and international capital mobility in the 20th century," JDE v57, 1998, 147-185.

Lane and Tornell, "Why aren't savings rates in Latin America procyclical?" JDE v57, 1998, 185-201. Morande, "Savings in Chile. What went right," JDE v57, 1998, 201-229. Hahn, "Do Koreans save optimally," JDE v47 no2, Aug 1995, 429-443 .

Reichel, "The long run savings function in cross section and time series analysis," JED v21 no 1, June 1996.

Corbo, et. al., "Public policies and savings in developing countries," JDE v3 6 no 1, 1991 , 89-115. Aghevli et. al., "The role of savings in the world economy: recent trends and prospects," IMF

Occasional Papers no67, 1990, Washington D.C.

S. Edwards, "Why are Latin America's savings rates so low? An international comparative analysis," Journal of Development Economics 51 (1), 1996, 5-44.

H. Alderman, "Saving and economic shocks in rural Pakistan, Journal of Development Economics 51 (2), 1996, 343-365.

D. Hatzinikolaou, "Government spending, taxation of interest, and private saving: An empirical analysis using Greek aggregate data," Journal of Development Economics 52 (2), 1997, 317-330.

IIIB. Private and Public Investment

Optional Readings:

"Handbook" Chapter 43 Jimenez, "Human and Physical Infrastructure: Investment and Pricing Policy in Developing Countries"

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F eltenstein and Ha, "An analysis of the optimal provision of public infrastructure a computational model using Mexican data," JDE v58, 1999, 219-230.

Rioja, "Productiveness and welfare implications of public infrastructure: a dynamic two sector genreal equilibrium analysis," JDE v58, 1999, 387-404.

Fielding, "Manufacturing investment in South Africa: a time series analysis," JDE v58, 1999, 405-427. Shafit, "Modeling private investment in Egypt," JDE v39 no2, Oct 1992, 263-279. Jaen Yong Shinen, "Financial factors in business fixed investment in Korea," JED v20 no 1, June 1995,

141-153.

IIIC. Financial Markets and Economic Growth*

Assigned Readings:

Kul B. Lumtel and Mosahid Kahn, "A quantitative assessment of the finance-growth nexus: evidence from a multivariate VAR," JDE v60, 1999, 381-405.

Odedoken, "Alternative econometric approaches for analyzing the role of the financial sector in economic growth: time series evidence from the LDCs'," JDE v50 nol, June 1996.

P.L. Rousseau, "Financial development and economic growth: theory and experiences from developing countries," Journal of Development Economics 55 (1), 1998, 257-263.

P.O. Demetriades, K.A. Hussein, "Does financial development cause economic growth? Time-series evidence from 16 countries," Journal of Development Economics 51 (2), 1996, 387-411.

IIID. Formal and Informal Credit Markets*

Assigned Readings:

Kamhon Kun, "Informing capital sources and household investment: evidence from Taiwan," JDE v62, 2000, 209-232.

Lonni, Jonathan, "Outreach, sustainability and average in monitored and peer-monitored lending," JDE v60, 1999, 51-77.

Brett E. Coleman, "The impact of group lending in northeast Thailand," JDE v60, 1999, 105-141.

Sudhanshu Randa and Claremont Kirton, "The economics of rotating savings and credit associations: evidence from the Jamaican partner," JDE v60, 1999, 173-194.

M. Glatak and T.W. Guinane, "The economics of lending with joint liability theory and practice," JDE v60, 1999, 195-228.

Jonathan Morduch, "The role of subsidies in microfinance: evidence from the Grameen Bank," JDE v 60, 1999, 229-248.

Kranton and Swamy, "The hazards of piecemeal reform: British civil courts and the credit market in colonial India," JDE v58, 1999, 1-24.

Aghim, "Development banking," JDE v58, 1999, 83-100.

Ma and Smith, "Credit market imperfections and economic development, theory and evidence," JDE v48 no2, 351-389.

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Besley and Coate, "Group lending, repayment incentives and social collateral," JDE v46, 1995, 1-18. Shresthon, "Institutional credit as a catalyst for agricultural sector growth, evidence from Nepal," JED

v17 no2, Dec 1992, 137-145.

Miller, "Inflation, uncertainty, and the disappearance of financial markets:the Mexican example," JED v17 nol , June 1992, 131-153.

A. Kochar, "An empirical investigation of rationing constraints in rural credit markets in India," Journal of Development Economics 53 (2), 1997, 339-371.

K. Hoff, J.E. Stiglitz, "Moneylenders and bankers: price-increasing subsidies in a monopolistically competitive market," Journal of Development Economics 55 (2), 1998, 485-518.

C.W. Calomiris, I. Rajaraman, "The role of ROSCAs: lumpy durables or event insurance?" Journal of Development Economics 56 (1), 1998, 207-216.

P. Bose, "Formal-informal sector interaction in rural credit markets," Journal of Development Economics 56 (2), 1998, 265-280.

A.R. Levenson, T. Besley, "The anatomy of an informal financial market: Rosca participation in Taiwan," Journal of Development Economics 51 (1), 1996, 45-68 .

S. Chaudhuri, M.R. Gupta, "Delayed formal credit, bribing and the informal credit market in agriculture: a theoretical analysis," Journal of Development Economics 51 (2), 1996, 433-449.

M.R. Gupta, "Informal sector and informal capital market in a small open less-developed economy," Journal of Development Economics 52 (2), 1997, 409-428.

K. Hoff, J.E. Stiglitz, "Moneylenders and bankers: price-increasing subsidies in a monopolistically competitive market," Journal of Development Economics 52 (2), 1997, 429-462.

IIIE. Financial Market Repression and Liberalization*

Assigned Readings:

Greneavski et. al., "Financial liberalization and private investment: evidence for Turkey," JDE v57, 1998, 443-455.

Roubini and Martin, "Financial repression and economic growth," JDE v39 no 1 July 1992, p 5-31. M.J. Fry "Savings investment growth and the cost of financial repression," WD, Apr 1980. A. Giovanni, "The interest elasticity of savings in developing countries," WD, July 1983. Molha, "Interest rates savings and investment in developing countries: a reexamination of the McKinnon

Shaw Hypothesis," IMF Staff Papers, Mar 1986. Wijnbergen, "Interest Rate Management in the LDCs," JME, Sept 1983.

Wijnbergen, "Macroeconomic effects of changes in bank interest rates simulation results for South Korea," JDE, Aug 1985.

A.R. Roe, "High interest rates: a new conventional wisdom for development policy," WD, Mar 1982. G.L. Kaminsky, L. Leidennan, "High real interest rates in the aftermath of disinflation: is it a lack of

credibility?" Journal of Development Economics 55 (1), 1998, 191-214. Kapur, "Inflation and financial deepening: comment and reply by Moore," JDE, Oct 1989.

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Cho, "The Effect of Financial Liberalization on the Efficiency of Credit Allocation: Some Evidence for Korea," JDE, July 1988.

Moriset, "Does financial liberalization really improve private investment in developing countries," JDE v40 nol, Feb 1993, 133-151.

Basant, "Formal and informal financial markets and the neo structuralist critique of the financial liberalization strategy in less developed countries," JDE v38, 1992, 63-77.

F. Jaramillo, F. Schiantarelli, A. Weiss, "Capital market imperfections before and after financial liberalization: an Euler equation approach to panel data for Ecuadorian firms," Journal of Development Economics 51 (2), 1996, 367-386.

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IV Industrial Structure

IV A. Patterns of Structural Change*

Required Readings:

Lal and Myint, Chapter 4: I, II, and III "Handbook" Chenery, Introduction to Part 2 "Handbook" Chapter 7 Moshe Syrquin, "Patterns of Structural Change" "Handbook" Chapter 32 Perkins and Syrquin, "Large Countries: The Influence of Size"

IVB. Agriculture and Rural Development*

Required Readings:

"Handbook" Chapter 8 Peter Timmer, "The Agricultural Transformation"

Assigned Readings:

Huang and Rozell, "Technological change: rediscovering the engine of productivity change in China's rural economy," JDE v49, 1996, 337-369.

Benjamin, "Can unobserved land quality explain the inverse productivity relationship," JDE v46, 1995, 51-84.

L.E. Fulginiti, R.K. Perrin, "LDC agriculture: nonparametric Malmquist productivity indexes," Journal of Development Economics 53 (2), 1997, 373-390.

Ranios and Stewart, "Rural nonagricultural activities in development theory and application," JDE v40 nol, Feb 1993, 75-103.

Binswanger and Khandker, "How infrastructure and financial institutions affect agricultural output and investment in India," JDE v41, 1993, 337-366.

IVC. Land Tenure*

Assigned Readings: .

A. Muthoo, "Renegotiation-proof tenurial contracts as screening mechanisms," Journal of Development Economics 56 (1), 1998, 1-26.

N. McCarthy, A. de Janvry, E. Sadoulet, "Land allocation under dual individual-collective use in Mexico," Journal of Development Economics 56 (2), 1998, 239-264.

Barhan et. al., "Agroexport production and peasant land access: examining the dynamic between adaptation and accumulation," JDE v46, 1995, 85-107.

K. Sengupta, "Limited liability, moral hazard and share tenancy," Journal of Development Economics 52 (2), 1997, 393-407.

Sadoulet, et. al., "Efficient share tenancy contracts under risk: the case of two rice growing villages in Thailand," JDE v45, 1994, 225-243.

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IVD. Agricultural Policy*

Assigned Readings:

Rozell and Boisvent, "Control in a dynamic village economy the reforms and unbalanced development in China's rural economy," JDE v46, 1995, 233-252.

Griever and Zeager, "Agricultural price policy in a less developed economy with endogenous urban wages," JED v18 nol , June 1993, 127-143.

Sugryanto and Yanagida, "Supply response and price setting under Indonesian rice intensification program," JED v18 nol, June 1993.

M.W. Rosegrant, F. Kasryno, N.D. Perez, "Output response to prices and public investment in agriculture: .Indonesian food crops," Journal of Development Economics 55 (2), 1998, 333-352.

Gyrmal-Brempong, Rationality of the peasant farmer: response to changing policies, JED vl 8 no 1, June 1993, 187-209.

IVE. Farm Household Decision Making

Optional Readings:

McCarthy et. al., "Land allocation under dual and individual collective uses in Mexico," JDE v56, 1998, 239-264.

Gramanet and Hamilton, "Estimating the elderly's returns on the farm: evidence from Coted Ivoire," JDE v58, 1999, 513-531.

S. Dercon, "Wealth, risk and activity choice: cattle in Western Tanzania," Journal of Development Economics 55 (1), 1998, 1-42.

M. Fafchamps, C. Udry, K. Czukas, "Drought and saving in West Africa: are livestock a buffer stock?" Journal of Development Economics 55 (2), 1998, 273-305.

C.B. Barrett, "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics 51 (2), 1996, 193-215.

E. Skoufias, "Intertemporal substitution in labor supply: micro evidence from rural India," Journal of Development Economics 51 (2), 1996, 217-237.

Sahu, "A two season agricultural household model of output and price uncertainty," JDE v45, 1994, 245-269.

Skoufias, "Risk and seasonality in an empirical model of the farm household," JED v19 no2, Dec 94, 93-117.

Skoufias, "Labor market opportunities and intrafamily time allocations in rural households in South Asia," JDE v40 no2, April 1993, 277-311.

IVF. Industrialization and Growth*

Required Readings:

Lal and Myint Chapter 4 IV and V.

"Handbook" Chapter 9 Pack, "Industrialization and Trade"

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Assigned Readings:

Bhalatia, "Changes in utilization and productivity in a deregulating economy," JDE v57, 1998, 391-420. Pilat, "Comparative productivity of Korean manufacturing 1967-1987," JDE v46, 1995, 123-144. Bonelli, "Growth and productivity in Brazilian industry," JDE v39, 1992, 85-109. Lim, "Industrial policy trade and productivity gains: South Korean evidence," JED v 18 no 1, June 1993,

53-81.

IVG. Technological Change and Technology Transfers

Required Readings:

"Handbook" Chapter 20 Westphal, "Technological Change"

"Handbook" Chapter 37 Evenson and Westphal, "Technological Change and Technology Strategy"

Optional Readings:

Bin Xu, "Multinational enterprises, technology diffusion, and host country productivity growth," JDE v62, 2000, 477-493.

Raut, "Spillover and productivity growth: evidence from Indian private firms," JDE v48 nol , Oct 1995, 1-25.

Lee, "Technology Imports and R&D Efforts of Korean Manufacturing Firms," JDE v50 nol , June 1996.

E. Detragiache, "Technology diffusion and international income convergence," Journal of Development Economics 56 (2), 1998, 367-392.

A.J. Glass, K. Saggi, "Inte'mational technology transfer and the technology gap," Journal of Development Economics 55 (2), 1998, 369-398.

Campbell and Hand, "Joint ventures and technology transfers: the Solomon Islands pole and line fishing," JDE v57, 1998, 421-442.

IVH. Enterprise Decision Making

Optional Readings:

Hongyi Chen and Scott Pozelle, "Leaders, managers, and the organization of township and village enterprises in China," JDE v60, 1999, 529-557.

Li, "State factories in transition-openness, competition, and productivity," JDE v58, 1999, 429-462. Mcpherson, "Growth of micro and small enterprises in southern Africa," JDE v48 no2, 253-279. Nugent, "What explains the trend reversal in the size distribution of Korean manufacturing

establishments," JDE v48 no2, 225-252.

Fafchamps et. al., "Local demand investment multipliers and industrialization: theory and application to the Guatemalan highlands," JED v49, 1996, 61-92.

B. Fikkert, R. Hasan, "Returns to scale in a highly regulated economy: evidence from Indian firms," Journal of Development Economics 56 (I), 1998, 51-79.

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V International Trade

VA. International Trade and Economic Growth*

Required Readings:

"Handbook" T. N. Srinivasan, "Introduction to Part 5" "Handbook" Chapter 24 Bliss, "Trade and Development"

Assigned Readings:

Jin and Yu, "The causal relationship between exports and income," JED 20, 1995, 131-140. Poon, "Export expansion, economic growth and economic development revisited," JED 20, 1995, 75-90. Lee, "Regional differences in the impact of the open door policy on income growth in China," JED 19,

1994, 215-234. Hotchkiss, et. al., "Export expansion and growth at different stages of development," JED 19, 1994, 87-

105. S. Storm, "Domestic constraints on export-led growth: a case-study of India," Journal of Development

Economics 52 (1), 1997, 83-119. Y.v.d.M. Rodgers, "Empirical investigation of one OPEC country's successful non-oil export

performance," Journal of Development Economics 55 (2), 1998, 399-420. S.A. Gutierrez de Pineres, M. Ferrantino, "Export diversification and structural dynamics in the growth

process: the case of Chile," Journal of Development Economics 52 (2), 1997, 375-391. A. Mody, K. Yilmaz, "Is there persistence in the growth of manufactured exports? Evidence from

newly industrializing countries," Journal of Development Economics 53 (2), 1997, 447-470.

VB. Supply and Demand in International Trade

Optional Readings:

Carolina, et. al., "The Composition of U.S. East Asia trade and changing comparative advantage", JDE

v57, 1998, 361-389. Ghose and Kharas, "International competitiveness, the demand for exports and real effective exchange

rates in developing countries," JDE 41, 1993, 377-398. Beenstock, et. al., "The supply and demand for exports in Israel," JDE 44, 1994, 333-350. Faini, "Export supply capacity and relative prices," JDE 45, 1994, 81-100. L.J. Truett, D.B. Truett, "The demand for imports in Korea: a production analysis approach," Journal

of Development Economics 56 (1), 1998, 97-114. Grobar, "The effect of real exchange rate uncertainty on LDC manufactured exports," JDE 41, 1993,

367-376. Athukorala, et. al., "Multinational firms and export performance in developing countries: Some analytical

issues and new empirical evidence," JDE 46, 1995, 109-122.

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VC. Trade Policy*

Required Readings:

"Handbook" Chenery, "Introduction to Part 6" "Handbook" Chapter 31 Bruton, "Import Substitution as a Development Strategy" "Handbook" Chapter 32 Balassa, "Outward Orientation"

Assigned Readings:

Euysung Kim, "Trade liberalization and productivity growth in Korean manufacturing industries: price protection market power and scale efficiency," JDE v62, 2000, 55-83.

Falvez and Gemmel, "Factor endowments, nontradeables prices and measures of openness," JDE v58, 1999, 101-122.

Anderson, "The Urugay Round and welfare in some distorted agricultural economies," JDE v56, 1998,

399-410. Clarete and Whalley, "Immiserizing growth and endogenous protection," JDE 45, 1994, 121-133. Pritchett, "Measuring outward orientation in LDCs: can it be done," JDE 49, 1996, 307-335. P. Krishna, D. Mitra, "Trade liberalization, market discipline and productivity growth: new evidence

from India," Journal of Development Economics 56 (2), 1998, 447-462. D. Fielding, "Adjustment, trade policy and investment slumps: evidence from Africa," Journal of

Development Economics 52 (1), 1997, 121-137.

Optional Readings:

"Handbook" Chapter 25 Evans, "Alternative Perspectives on Trade and Development" "Handbook" Chapter 30 Lewis, "The Experience of Primary Exporting Countries" "Handbook" Chapter 45 Rodrik, "Trade and Industrial Policy Reform"

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VI. Political Economy

VIA. Macroeconomic Perspectives*

Required Readings:

Lal and Myint, Chapter 6: I-IV, Chapter 7: I-IV, and Chapter 8: I-IV

Assigned Readings:

Francois Bourguignon and Thierry Verdier, "Oligarchy, democracy, inequality and growth," JDE v62, 2000, 285-313.

Alesina, et. al., "Budget institutions and fiscal reforms in Latin America," JDE 159, 1999, 253 -273. Sturzenegger, "Fiscal conservatism as a response to the debt crises," JDE v45, 1994, 305-324. Gyimah-Brempong and Dapaah, "Nonelite political instability and economic growth: evidence from

Subsaharan Africa," JED v2 l no 1, June 1996. Basu, "Civil institutions and evolution: concepts, critique, and models," JDE v46, 1995, 19-33. Al-Mutawa, "The Dutch disease, learning by doing and public policy: evidence from the United Arab

Emirates," JED v21 nol, June 1996.

Chen and Feng, "Economic development, political cost, and democratic transition theory, statistical testing and a case study," JED, v21 no2, Dec 1996.

Optional Readings:

"Handbook" Behrman and Srinivasan, "Introduction to Part 9"

"Handbook" Chapter 40 Krueger, "Policy Lessons from Development Experience Since the Second World War"

"Handbook" Chapter 44 Corbo and Fischer, "Structural Adjustment, Stabilization and Policy Reform"

VIA. Microeconomic Perspectives*

Required Readings:

"Handbook" Chapter 5 Stiglitz, "Economic Organization, Information, and Development"

Assigned Readings:

Jean-Marie Balard and Patrick Francois, "Rent seeking and resource booms," JDE v61, 2000, 527-542. Rama, "Rent Seeking and Economic Growth," JDE v42, 1993, 35-50.

Cardenas, "Stabilization and redistribution of coffee revenues: a political economy model of commodity marketing boards," JDE v44, 1994, 351-380.

Pack, "Productivity or politics: the determinants of the Indonesian tariff structure," JDE v44, 1994, 441-451.

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Barkley and McMillan, "Political freedom and the response to economic incentives and labor migration in Africa 1972-1987," JDE v45, 1994, 393-406.

J. Baland, A. Kotwal, "The political economy of underinvestment in agriculture," Journal of Development Economics 55 (I), 1998, 233-247.

M. Lipton, "The Political Economy of Poverty, Equity and Growth: a Comparative Study," Journal of Development Economics 55 (1),1998, 265-269.

E. Funkhouser, "Labor market adjustment to political conflict changes in the labor market in El Salvador during the 1980s," Journal of Development Economics 52 (1),1997, 31-64.

Optional Readings:

"Handbook" Chapter 38 Lin and Nugent, "Institutions and Economic Development" "Handbook" Chapter 42 Binswanger, Deinninger, and Feder, "Power, Distortions, Revolt and Reform

in Agricultural Land Relations"

19

VII Income Distribution, Poverty, and Social Welfare

VIIA. Income Distribution*

Required Readings:

Lal and Myint, Chapter 1 :I "Handbook" Chapter 19 Adelman and Robinson, "Income Distribution and Development"

Assigned Readings:

Bourguignon and Morrison, "Inequality and development: the role of dualism," JDE v57, 1999, 233-257. Ebert, Comment on Fields, "Measuring inequality changes in an .economy with income growth, or how

reliable is intuition," JDE v59, 1999, 527-530. Deininger and Squire, "New ways of looking at old issues: inequality and growth," JDE v57, 1998, 259-

287. Anand and Kanbur, "The Kuznets process and the inequality-development relationship," JDE v40 nol ,

Feb1993, 25-53.

Chow and Riju, "Gini coefficient, Lorenze Curves and Lorenze Dominance Effect: an application to Korean income distribution data," JED v19 no2, Dec 1994, 47-67.

Rati, "Economic development and income inequality: further evidence on the U curve hypothesis," World Development v16 no! 1, 1988, 1371-1376.

Persson and Tabellini, "Is inequality harmful for growth," American Economic Review v84 no3, 1994, 600-621.

Clarke, "More evidence on income distribution and growth," JDE v47 no2, Aug 1995, 403-429. G. Glomm, B. Ravikumar, "Increasing returns, human capital, and the Kuznets curve," Journal of

Development Economics 55 (2), 1998, 353-367.

Optional Readings:

Tsuklolow, "Aspects of inequality in Greece: measurement, decomposition and intertemporal change," JDE v40 nol, Feb 1993, 53-75.

Deghan, "Income distribution overurbanization and economic development: evidence from a cross national study," JED v20 nol, June 1995, 15-37.

Chu, "The effects of off-farm employment on inequality: theories and empirical application to the Taiwan case," JED v21 no2, Dec. 1996.

Tsui, "Economic reform and interprovincial inequalities in China," JDE v50 no2, Aug 1996.

B. Barham, S. Boucher, "Migration, remittances, and inequality: estimating the net effects of migration on income distribution," Journal of Development Economics 55 (2), 1998, 307-331.

Clements and Moriera, "Multinationals, employment, and income distribution in Brazil," JDE vl9 nol , June 1995.

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VIIB. Poverty*

Required Readings:

Lal and Myint Chapter 1: II-IV, Chapter 9: I-VIII

Assigned Readings:

Lisa Cameron, "Poverty and inequality in Java: examining the impact of the changing age, educational and industrial structure" JDE v62, 2000, 149-180.

Julan and Ravallion, "Are the poor less well insured? Evidence on vulnerability to income risk in rural

China," JDE v58, 1999, 61-81. Gauraw and Ravallion, "Growth and redistribution components of change in poverty measures: a

decomposition with application to Brazil and India in the 1980s," JDE v38, 1992, 275-295. Gleuwe, "Targeting assistance to the poor: efficient allocation of transfers when household income is not

observed," JDE v38, 1992, 297-323. Grootaert, "Structural change and poverty in Africa: decomposition analysis for Coted lvoire," JDE v47

no2, Aug 1995, 375-403. F. Grimard, "Household consumption smoothing through ethnic ties: evidence from Cote d'Ivoire,"

Journal of Development Economics 53 (2), 1997, 391-422. J. Dreze, P.V. Srinivasan, "Widowhood and poverty in rural India: some inferences from household

survey data," Journal of Development Economics 54 (2), 1997, 217-234.

D. Cox, Z. Eser, E. Jimenez, "Motives for private transfers over the life cycle: an analytical framework and evidence for Peru," Journal of Development Economics 55 (1), 1998, 57-80.

D. Ben-David, "Convergence clubs and subsistence economies," Journal of Development Economics 55 (1), 1998, 155-171.

P. Glewwe, G. Hall, "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics 56 (1), 1998, 181-206.

Optional Readings:

"Handbook" Chapter 41 Lipton and Ravallion, "Poverty and Policy"

VIIC. Social Welfare*

Required Readings:

Lal and Myint, Chapter 10: 1-11. "Handbook" Chapter 1 Sen, "The Concept of Development"

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Assigned Readings:

Kakwani, "Performance in living standards: an international comparison," JDE v41 , 1993, 307-336. Nissan, "Measuring relative social progress among nations," JDE v18, 1993, 143-161. Ram, "Composite indices of physical quality of life, basic needs fulfillment and income," JDE v 11, 1982,

227-247. Achatya and Wall, "An evaluation of the United Nations development index," Journal of Economic

and Social Measurement v20 nol, 51-65.

Gormely, "The human development index in 1994: impact of income on country rank," Journal of Economic and Social Measurement v21 no4, 1995, 253-256.

McGillivray, "The human development index: yet another redundant composite develop-ment indicator," Asian Journal of Economics and Social Studies vll nol, 1992, 72-81.

Venkatsubramanian, "The human development index," Asian Journal of Economics and Social Studies vl 1 nol, 1992, 82-85.

Lind, "Some thoughts on the human development index," Social Indicators Research v27 nol, 1991, 89-101.

Ogwang, "The choice of principle variables for computing the human development index," World Development v22 no 12, 1994, 2011-2014.

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