Seminar in Economic Development Economics 8784 Fall 1999 University of Colorado at Boulder Professor Barry W. Poulson

Required Readings:

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 identify.ing 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.

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Schedule

Aug. 23-Sept. 17 I Economic Growth and Development

Sept. 20-0ct. 1 II Human resources

Oct. 4-15 III Capital resources

Oct. 18-29 IV Industrial Structure

Nov. 1-12 V Trade

Nov. 15-26 VI Political Economy

Nov. 29-Dec. 8 VII Income Distribution, Poverty, and Social Welfare

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:

La] and Myint, Chapter 2: III and IV

Assigned Readings:

De Gregoria, Economic growth in Latin America, JDE v 39 no 1 July 1992 p59-85 Edwards, Trade orientations, Distortions, and growth in Developing Countries, JDE 39 (July): 31 -57

Optional Reading:

'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

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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. IDE v59(1999) 43-76 Spilimbergo, et. Al. Income distribution, factor endowments, and trade openness, IDE v59(1999) 77-101. Beyer et.al. Trade liberalization and wage inequality IDE v59(1999) 103-123. Harrison and Hansen, Who gains from trade reform? Some remaining puzzles, JDE v59(1999) 125-154.

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, 325-345 (1998). 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 I' '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 v16 no2 Dec 1991 p61-75 Taylor, Gap Models, JDE v 45 1994 p17-34 Rauch, 'Balanced and Unbalanced Growth' , JOE, v53, nol , June 1997

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. NBER Working Paper No. 6268, November 1997

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r Donaldson, Fertility patterns of the transition onset: Insights of the living standard model, JED v 16 no2 dee 1991 Crimmins, Easterlin, Jejeebhoy, and Srinivasan, New perspectives on the demographic transition: A theoretical and empirical analysis of an Indian state, 1951-1975, Economic Development and Cultural Change v 32, 1984 p227-253

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, IDE v45 1994 p407-414 Vyerben and Zeager, Comparing earnings profiles in urban areas of an LDC: rural to urban migrants versus native workers, JDE v45 1994 p 177-199 Vernon Henderson, "Urbanization in a Developing Country; City Size and Population Composition", IDE July Aug 1986. L.A. Lanzona, Migration, self-selection and earnings in Philippine rural communities, Journal of Development Economics 56 (1) (1998) pp. 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", IDA APR 1986.

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) pp. 69-98. C. Dustrnann, Return migration, uncertainty and precautionary savings, Journal of Development Economics 52 (2) (1997) pp. 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

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Assigned Readings:

Yao, Rural industry and labor market integration in Eastern China, JDE v59(1999) 463-496. Richards, The Egyptian labor market revisited, JDE v 43 no2 April 1994 p239-263 Basch, and Paredes, 'Are Their Dual Labor Markets in Chile' , IDE 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) pp. 1-30.

IIE. Wage Determination

Optional Readings

Shariff et al, Forward falling labor supply implications for wage rigidity unemployment and plan failure, JED v20 nol June 1995 p91-113. 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', IDE, 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) pp. 305-338. J.A. Schaffner, Premiums to employment in larger establishments: evidence from Peru, Journal of Development Economics 55 (1) (1998) pp. 81-113. 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) pp. 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 (1) (1996) pp. 99-116

IIF. Education and Human Capital*

Required Readings:

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

Assigned Reading:

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 p219-241. Cox and Jimong, The relative effectiveness of private and public schools: evidence from two developing countries, IDE v34 1991 p99-121 K. Flug, A. Spilimbergo, E. Wachtenheim, Investment in education: do economic volatility and credit constraints matter?, Journal of Development Economics 55 (2) (1998) pp. 465-481. K. Jinyoung, Economic analysis of foreign education and students abroad, Journal of Development Economics 56 (2) (1998) pp. 337-365.

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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) pp. 267-290. V. Lavy, School supply constraints and children's educational outcomes in rural Ghana, Journal of Development Economics 51 (2) ( 1996) pp. 291-314. Glomrn, 'Parental Choice of Human Capital Investment', JDE, v53, no 1, June 1997 L. Tianyou, Z. Junsen, Returns to education under collective and household farming in China, Journal of Development Economics 56 (2) (1998) pp. 307-335.

Optional Readings:

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

IIG. Health and Human Capital*

Required Readings:

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

Assigned Readings:

Thomas and Straus, prices infrastucture household characteristics and child height, JDE v 39 no2 Oct 1992 p301-333 Cebu study team, A child health production function estimated from longitudinal data, JDE 38 no2 apr. 1992 p323-353 Barerra, The interactive effects of mothers schooling and unsupplemented breast feeding on child health, JDE v34 1991 p81-98 Barrera, The role of maternal schooling and its interaction with public health programs in child health production, JDE v32 1990 p69-91 Thomas et al, Child survival, height for age and household characteristicsd in Brazil, IDE v33 1990 p197-234 Handa, 'Expenditure Behavior and Children's Welfare: An Analysis of Female Headed . Households in Jamaica', JDE v50, no 1, 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) pp. 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) pp. 281-305. Rosenzweig and Wolpin, Evaluating the effects of optimally distributed public programs: Child health and family planning interventions. AER v 76no3, June 1986 470-482 Rosenzweig and Wolpin, Governmental interventions and household behavior in a developing country, JDE v10(1982) 209-225.

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r Rosenzweig and Schultz, Market opportunities, Genetic Endowments, and intrafamily distribution: child survival in rural India. AER v72 no.4 September 1982 803-815. Rosenzweig and Evenson, Fertility, schooling, and the economic contribution of children in rural India: An econometric analysis. Econometrica v 45 no.5 July 1977 1065-1079.

III Capital Resources

IIIA. Savings and Capital Formation *

Required Readings

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

Assigned Readings

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, IDE 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, IDE v57( 1998) 97-117. Taylor, Argentina and the world capital market: saving investment, and international capital mobility in the 201

h 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. IDE v57(1998) 201-229. Hahn, Do Koreans save optimally, JDE v47 n02 Aug 1995 p429-443 Reichel, 'The Long Run Savings Function in Cross section and Time Series Analysis' JED v21, nol, June 1996 Corbo, et al. Public policies and savings in developing countries, IDE v36 no 1 1991p89-115 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) pp. 5-44. H. Alderman, Saving and economic shocks in rural Pakistan, Journal of Development Economics 51 (2) (1996) pp. 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) pp. 317-330.

IIIB. Private and Public Investment

Optional Readings

'Handbook' Chapter 43 Jimenez, 'Human and Physical Infrastructure: Investment and Pricing Policy in Developing Countries' Feltenstein and Ha, An analysis of the optimal provision of public infrastructure a computational model using Mexican data IDE v58(1999) 219-230.

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r Rioja, Productiveness and welfare implications of public infrastructure: a dynamic two sector genreal equilibrium analysis, IDE v58(1999) 387-404. Fielding, Manufacturing investment in South Africa: A time series analysis, JDE v58(1999) 405-427. Shafit, Modeling private investment 1n Egypt, IDE v39, no2, Oct 1992 p263-279 Jaen Yong Shinen, Financial factors in business fixed investment in Korea, JED, v 20 no 1 June 1995 p141 -153

IIIC. Financial Markets and Economic Growth*

Assigned Readings

Odedoken, 'Alternative Econometric Approaches for Analyzing the Role of the Financial Sector in Economic Growth: Time Series evidence from the LDCs', JDE v50, no 1, June 1996 P.L. Rousseau, Financial Development and Economic Growth: Theory and Experiences from

Developing Countries, Journal of Development Economics 55 (1) (1998) pp. 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) pp. 387-411.

IIID. Formal and Informal Credit Markets*

Assigned readings

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, IDE v58(1999) 83-100. Ma and Smith, Credit market imperfections and economic development, theory and evidence, JDE v 48 no2 p351-389 Besley and Coate, Group lending, repayment incentives and social collateral, IDE v46 1995 p 1-18 Shresthon, Institutional credit as a catalyst for agricultural sector growth, evidence from Nepal, JED vl 7 no2 Dec 1992 p137-145 Miller, Inflation, uncertainty, and the disappearance of financial markets: the Mexican example, JED v17 nol June 1992 p131-153 A. Kochar, An empirical investigation of rationing constraints in rural credit markets in India, Journal of Development Economics 53 (2) (1997) pp. 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) pp. 485-518. C.W. Calomiris, I. Rajaraman, The role of ROSCAs: lumpy durables or event insurance?, Journal of Development Economics 56 (I) (1998) pp. 207-216. P. Bose, Formal-informal sector interaction in rural credit markets, Journal of Development Economics 56 (2) (1998) pp. 265-280. AR. Levenson, T. Besley, The anatomy of an informal financial market: Rosca participation in Taiwan, Journal of Development Economics 51 (1) (1996) pp. 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) pp. 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) pp. 409-428.

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

HIE. 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 v 39 no 1 July 1992, p5-3 l 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. AR. Roe, High Interest Rates: A New Conventional Wisdom for Development Policy, WD Mar 1982. G.L. Kaminsky, L. Leiderman, High real interest rates in the aftermath of disinflation: is it a lack of credibility?, Journal of Development Economics 55 (1) (1998) pp. 191-214. Kapur, Inflation and Financial Deepening:Comment and Reply by Moore, JDE Oct 1989. Cho, The Effect of Financial Liberalization on the Efficiency of Credit Allocation: Some Evidence for Korea. IDE 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, IDE v38 1992 p63-77 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) pp. 367-386.

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'

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r r IVB. Agriculture and Rural Development*

Required Readings

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

Assigned readings

Huang and Rozell, Technologial change: rediscovering the engine of productivity change in Chinas rural economy, JDE v49 1996 p337-369 Benjamin, Can unobserved land quality explain the inverse productivity relationship, JDE v46 1995, p51-84 L.B. Fulginiti, R.K. Perrin, LDC agriculture: Nonparametric Malmquist productivity indexes, Journal of Development Economics 53 (2) (1997) pp. 373-390 Ranios and Stewart, Rural nonagricultural-activities in development theory and application, JDE v40 nol Feb 1993 p75-103 · Binswanger and Khandker, 'How Infrastructure and Financial Institutions Affect Agricultural Output and Investment in India', JDE vol 411993, pp337-366.

IVC. Land Tenure*

Assigned Readings

A. Muthoo, Renegotiation-proof tenurial contracts as screening mechanisms, Journal of Development Economics 56 (1) (1998) pp. 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) pp. 239-264. Barhan et. al., Agroexport production and peasant land access: Examining the dynamic between adaptaion and accumulation, JDE v46 1995 p85-107 K. Sengupta, Limited liability, moral hazard and share tenancy, Journal of Development Economics 52 (2) (1997) pp. 393-407. Sadoulet, et. Al. Efficient share tenancy contracts under risk: the case of two rice growing villages in Thailand, JDE v45 1994 p225-243

IVD. Agricultural Policy*

Assigned Readings:

Rozell and Boisvent, Control in a dynamic village economy the reforms and unbalanced development in Chinas rural economy, JDE v46 1995 p233-252 Griever and Zeager, Agricultural price policy in a less developed economy with endogenous urban wages, JED vl8 nol June 1993 p127-143 Sugryanto and Yanagida, Supply response and price setting under Indonesian rice intensification program, JED v18 no 1 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) pp. 333-352. Gyrmal-Brempong, Rationality of the peasant farmer: response to changing policies, JED v18 nol June 1993 p187-209

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r-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. Grimand 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) pp. 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) pp. 273-305. C.B. Barrett, On price risk and the inverse farm size-productivity relationship, Journal of Development Economics 51 (2) (1996) pp. 193-215. E. Skoufias, Intertemporal substitution in labor supply: Micro evidence from rural India, Journal of Development Economics 51 (2) (1996) pp. 217-237. Sahu, A two season agricultural household model of output and price uncertainty, JDE v45 1994 p245-269 Skoufias, Risk and seasonality in an empirical model of the farm household, JED v19 no2 Dec 94, p93-117 Skoufias, Labor market opportunities and intrafamily time allocations in rural households in South · Asia, JDE v40 no2 April 1993 p277-311

IVF. Industrialization and Growth*

Required Readings

Lal and Myint Chapter 4 IV and V. 'Handbook' Chapter 9 Pack, 'Industrialization and Trade'

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 p 123-44 Bonelli, Growth and Productivity in Brazilian industry, IDE v39 1992 p85-109 Lim, Industrial policy trade and productivity gains:South Korean evidence, JED v18 not June 1993 p53-81

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'

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Optional Readings:

Raut, Spillover and productivity growth: evidence from Indian private firms , IDE v48 nol Oct 1995 ppl-25. Lee, 'Technology Imports and R&D Efforts of Korean Manufacturing Firms', IDE v.50, no 1, June 1996 E. Detragiache, Technology diffusion and international income convergence, Journal of Development Economics 56 (2) (1998) pp. 367-392. A.J. Glass, K. Saggi, International technology transfer and the technology gap, Journal of Development Economics 55 (2) (1998) pp. 369-398. Campbell and Hand, Joint ventures and technology transfers: the Solomon Islands pole and line fishing, IDE v57(1998) 421-442.

IVH. Enterprise Decision Making

Optional Readings:

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 p253-279 Nugent, What explains the trend reversal in the size distribution of Korean manufacturing establishments, IDE v48 no2 p225-252 Fafchamps et al, Local demand investment multipliers and industrialization: theory and application to the Guatemalan highlands, JED v49 1996 p61-92 B. Fikkert, R. Hasan, Returns to scale in a highly regulated economy: evidence from Indian firms , Journal of Development Economics 56 (1) (1998) pp. 51-79.

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, p131-140. Poon, "Export expansion, economic growth and economic development revisited," JED, 20, 1995, p75-90. Lee, "Regional differences in the impact of the open door policy on income growth in China," JED, 19, 1994, p215-234. Hotchkiss, et.al., "Export expansion and growth at different stages of development," JED 19, 1994, p87-105. S. Storm, Domestic constraints on export-led growth: a case-study of India, Journal of Development Economics 52 (1) (1997) pp. 83-119.

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Y.v.d.M. Rodgers, Empirical investigation of one OPEC country's successful non-oil export performance, Journal of Development Economics 55 (2) ( 1998) pp. 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) pp. 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) pp. 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, p377-398. Beenstock, et.al. "The supply and demand for exports in Israel", JDE 44, 1994, p333-350. Faini, "Export supply capacity and relative prices," IDE 45, 1994, p81-100. L.J. Truett, D.B. Truett, The demand for imports in Korea: a production analysis approach, Journal of Development Economics 56 (1) (1998) pp. 97-114. Grobar, "The Effect of real Exchange Rate Uncertaintly on LDC Manufacured Exports", JDE, 41, 1993, p367-376. Athukorala, et. Al. "Multinational firms and export performance in developing countries: Some analytical issues and new empirical evidence", JDE 46, 1995, p 109-122.

VC. Trade Policy*

Required Readings 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

Falvez and Gemmel, Factor endowments, nontradeables prices and measures of openness, IDE v58(1999) 101-122. Anderson, The Urugay Round and welfare in some distorted agricultural economies, IDE v56(1998) 399-410. Clarete and Whalley," Immiserizing growth and endogenous protection," JDE 45, 1994,p121-133. Pritchett, "Measuring outward orientation in LDCs: can it be done," JDE 49, 1996, p307-335. P. Krishna, D. Mitra, Trade liberalization, market discipline and productivity growth: new evidence from India, Journal of Development Economics 56 (2) (1998) pp. 447-462. D. Fielding, Adjustment, trade policy and investment slumps: evidence from Africa, Journal of Development Economics 52 (1) (1997) pp. 121-137

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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'

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:

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 p305-324 Gyimah-Brempong and Dapaah, 'Nonelite Political Instability and Economic Growth: Evidence from Subsaharan Africa', JED v21, nol, June 1996 Basu, Civil institutions and evolution: concepts, critique, and models, IDE v46 1995 pl9-33 Al-Mutawa, 'The Dutch Disease, Learning by Doing and Public Policy: Evidence from the United Arab Emirates', JED V21 no.l 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 Reading

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

Assigned Readings

. Rama, 'Rent Seeking and Economic Growth, JDE V 42, 1993, pp. 35-50 Cardenas, Stabilization and Redistribution of coffee revenues: a political economy model of commodity marketing boards, JDE v44 1994 p351-380 Pack, Productivity or Politics: the determinants of the Indonesian tariff structure, JDE v44 1994 p441-45 l

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Barkley and McMillan, Political freedom and the response to economic incentives and labor migration in Africa 1972-1987, IDE v45 1994 p393-406 J. Ealand, A. Kotwal, The political economy of underinvestment in agriculture, Journal of

Development Economics 55 (1) (1998) pp. 233-247. M. Lipton, The Political Economy of Poverty, Equity and Growth: a Comparative Study, Journal of Development Economics 55 (1) ( 1998) pp. 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) pp. 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'

VII Income Distribution, Poverty, and Social Welfare

· VIIA. Income Distribution*

Required Reading

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, IDE v57(1998) 259-287. Anand and Kanbur, The Kuznets process and the inequality-development relationship, IDE v40 nol Febl993 p25-53 Chow and Riju, Gini coefficient, Lorenze Curves and Lorenze Dominance Effect: An application to Korean income distribution data, JED v19 no2 Dec 1994 p 47-67 Rati, Economic development and income inequality: further evidence on the U curve hypothesis, World Development v16 nol 1 1988 p1371-1376 Persson and Tabellini, Is inequality harmful for growth, American Economic Review v84 no3 1994 p600-621 Clarke, More evidence on income distribution and growth, JOE v47 no2 Aug 1995 p403-429 G. Glomm, B. Ravikumar, Increasing returns, human capital, and the Kuznets curve, Journal of Development Economics 55 (2) (1998) pp. 353-367.

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Optional Readings:

Tsuklolow, Aspects of inequality in Greece: Measurement, Decomposition and intertemporal change, JDE v40 nol Feb 1993 p53-75 Deghan, Income distribution overurbanization and economic development: evidence from a cross national study, JED v20 nol June 1995 p15-37 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) pp. 307-331. Clements and Moriera, Multinationals, Employment, and Income Distribution in Brazil, IDE Vl9 no.1 June 1995

VIIB. Poverty*

Required readings;

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

Assigned Readings:

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, IDE v 38, 1992 p275-295 Gleuwe, targeting assistance to the poor: Efficient allocation of transfers when household income is not observed, JDE v 38 1992 p297-323 Grootaert, Structural change and poverty in Africa: decomposition analysis for Cote d'Ivoire, JDE v47 no2 Aug 1995 p375-403 F. Grimard, Household consumption smoothing through ethnic ties: evidence from Cote d'Ivoire, Journal of Development Economics 53 (2) (1997) pp. 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) pp. 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) pp. 57-80. D. Ben-David, Convergence clubs and subsistence economies, Journal of Development Economics 55 (1) (1998) pp. 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) pp. 181-206.

Optional Reading

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

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VIIC. Social Welfare*

Required Reading

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

Assigned Readings

Kakwani, Performance in living standards: an international comparison, IDE v411993 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, IDE vl 1 1982 227-247 Achatya and Wall, An evaluation of the United Nations development index, Journal of Economic and Social Measurement, v20 no 1 p51 ~65 Gormely, The human development index in 1994: impact of income on country rank, Journal of Economic and Social Measurement v21no41995 p253-256 McGillivray, The human development index: yet another redundant composite development indicator, Asian Journal of Economics and Social Studies, v 1.1 no 1 1992 p72-81 Venkatsubramanian, The human development index, Asian Journal of Economics and Social Studies v 11 no 1 1992 p82-85 Lind, Some thoughts on the human development index, Social Indicators Research v27 no 1 1991 p89-101 Ogwang, The choice of principle variables for computing the human development index, World Development v22 no12 1994 p2011-2014

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