BSc International Business, Finance and Economics with Industrial/Professional Experience

Year of entry: 2020

Course unit details:
Development Economics IIB

Unit code ECON20332
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 2
Offered by Economics
Available as a free choice unit? Yes

Overview

This course aims to develop students’ understanding and knowledge of theoretical and empirical Development Economics.  It is done so from the perspective of inequality and poverty.  We shall cover a diverse range of topics linked to the notion of income distributional that includes the role of human capital, and institutions.  Students will also learn about the measurement and causes of poverty and inequality leading to discussion on policies to reduce poverty and inequality.  Even though it is not necessary to successfully complete the course to be familiar with calculus and some basic econometrics, you will be required to have a basic knowledge of both.

If you have any questions or concerns about this at any point during the course, please contact me and we can arrange a meeting or come to my office during my office hours(to be confirmed). I also advice those who have never done Mathematics and/or Econometrics before to see me within the first couple of weeks.

Pre/co-requisites

Unit title Unit code Requirement type Description
Microeconomic Analysis 1 ECON10171 Pre-Requisite Compulsory
Microeconomics 1 ECON10221 Pre-Requisite Compulsory
Microeconomics 1 ECON10331 Pre-Requisite Compulsory
Introductory Mathematics ECON10061 Pre-Requisite Compulsory
Advanced Mathematics ECON10071 Pre-Requisite Compulsory
Introductory Statistics for Economists SOST10062 Pre-Requisite Compulsory
Advanced Statistics ECON10072 Pre-Requisite Compulsory
(ECON10171 Micro Analysis 1 or ECON10221 Micro 1 or ECON10331 Micro 1) and (ECON10061 Intro Maths or ECON10071 Adv Maths) and (SOST10062 Intro Stats or ECON10072 Adv Stats)

(ECON10171 or ECON10221 or ECON10331) and (ECON10061 or ECON1007) and ( SOST10062 or ECON10072)

Aims

• To familiarise students with the theoretical and empirical aspects of economic development faced by less developed countries (LDCs);

• To provide students with key concepts of Development Economics examined through the prism of poverty and inequality

• To provide students with the basic skills required for the development of an independent understanding of current issues in Development Economics.

Learning outcomes

• Explain the key issues in developing countries making reference to the existing theoretical and empirical literature;

• Assess critically the factors and policies influencing poverty an inequality;

• Demonstrate their understanding of the changing nature of global inequality and poverty;

• Express ideas coherently in writing.

Syllabus

The Unit should cover the following broad topics

 

Topic 1 Concepts and Measurement

  • different measures of inequality and poverty and their properties;
  • discuss the changing nature of inequality and poverty in the world
  • case studies from World Bank.

 

Topic 2 Explaining inequality and poverty: theory and evidence

  • human capital model: role of education and skills
  • labour market institutions (union, minimum wage, etc.)
  • analytical and empirical evidence linking inequality, poverty and economic growth

 

Topic 3: Policy: changing policy environment over the last three decades

  • UN Millennium Development Goals;
  • World Bank poverty initiative;
  • Child Poverty act of UK;
  • Cash transfer programmes in Latin America

 

Topic 4: Broader Notion of Well-being

  • Multi-dimensional Approach
  • Basic Needs
  • Functionings and Capabilities

Teaching and learning methods

Lectures and tutorial classes.

Employability skills

Analytical skills
Synthesis and analysis of data and information. Critical reflection and evaluation. Decision-making.
Problem solving
Research
Planning independent research. Using library, electronic and online resources.

Assessment methods

For information about feedback please follow this link:
http://www.campus.manchester.ac.uk/tlso/map/teachinglearningassessment/assessment/sectionb-thepracticeofassessment/policyonfeedbacktostudents/

Assessment:
86% Exam
14% Mid-term exam

Feedback methods

  • Tutorial feedback.
  • Office hours.
  • Revision sessions.

Recommended reading

 

The basic textbook for this module is:

Debraj, R. (1998), Development Economics, last edition, Princeton University Press.

Deaton, A. (2013) The Great Escape: Health Wealth and the Origins of Inequality, Princeton University Press

Sen, A (2001) Development as Freedom, (Second Edition), Oxford University Press

 

Additional Readings

Lecture 1: Introduction: What is Economic Development? Overview.

BOOK: Ray (Ch. 2);

Basu, K. and Maertens, A. (2007). The pattern and causes of economic growth in India. Oxford Review of Economic Policy, 23: 143–167.

Banerjee, A.V. and Du¿o, E. (2007). The Economic Lives of the Poor. The Journal of Economic Perspectives. 21(1):141–167.

Sen, Amartya. (1988). The Concept of Development. Chapter 1 in Handbook of Development Economics (1988), Vol. I, edited by Chenery, H. and Srinivasan, T. N.

 

Lecture 2: The Family and how the members make decisions.

A Cournot–Nash Model of Family Decision Making, The Economic Journal Volume 111, Issue 474, pages 722–748, October 2001

Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa, Duflo (2003), World Bank Economic Review.

Gender, Agricultural Production and the Theory of the Household, Chris Udry, Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October, 1996.

 

Lecture 3: Education and the role of Human Capital in the growth process.            

BOOK: Ray (Ch. 4-5); 

Du¿o, E. (2001). Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. American Economic Review, 91(4): 795–813.

Galor, O. and Zeira, J. (1993). Income Distribution and Macroeconomics. Review of Economic Studies, 60(1): 35–52.

 

Lecture 4: Foreign Aid for Development.

Robinson, S. and F. Tarp (2000), A Foreign Aid and Development: Synthesis in F. Tarp and P. Hjertholm (editors), Foreign Aid and Development: Learnt and Directions for the Future, Routledge, London and New York.

Burnside, G. and D. Dollar (2000), “Aid, Policies and Growth”, American Economic Review, pp.847-868.

Hansen, H. and F.Tarp, (2000), “Aid effectiveness disputed”, Journal of International Development, Vol. 12 (3), pp. 375-98.

Alesina, A. and D. Dollar (2000), "Who Gives Foreign Aid to Whom and Why?”, Journal of Economic Growth, Vol.5, No.1, pp.33-63.

 

Lecture 5: Land and Asymmetries in Information: ownership, tenancy and land rental contracts

BOOK: Ray (Ch. 12)

Banerjee, A., Gertler, P., and Ghatak, M. (2002). Empowerment and Ef¿ciency: Tenancy Reform in West Bengal. Journal of Political Economy, 110(2):239–80.

Besley, T. and Burgess, R. (2000). Land Reform, Poverty Reduction, and Growth: Evidence from India. The Quarterly Journal of Economics, 115(2): 389–430.

 

Lecture 6: Rural and Urban Context: formal and informal sector and the interaction between the two.

BOOK: Ray (Ch. 10-11)

 

Lecture 7: Credit Market and Insurance:  theories of informal credit markets

BOOK: Ray (Ch. 14-15)

Ghosh, P., Mookherjee, D., & Ray, D, (2000). Credit Rationing in Developing Countries: An Overview of the Theory. Chapter 11 in Readings in the Theory of Economic Development, edited by Mookherjee, D. & Ray, D., London: Blackwell, pages 383–301

Burgess, R., and R. Pande (2005). Do rural banks matter? Evidence from the Indian social banking experiment. American Economic Review 9

Study hours

Scheduled activity hours
Assessment written exam 1.5
Lectures 16
Tutorials 4
Independent study hours
Independent study 78.5

Teaching staff

Staff member Role
Indranil Dutta Unit coordinator

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