ECON 4507: The Economics of Development

Department of Economics Fall 2012

Professor: B. Ural Marchand Class meetings: Mondays 11:35 AM - 2:25 PM Location: 505 Southam Hall Oce Hours: Wednesdays 11:00 AM - 12:00 AM Email: beyza.ural@ualberta.ca Oce: B-845 Loeb, Phone: 613-520-2600 x 7454

Course Description

The purpose of this course is to study selected issues in economic development in terms of theory, evidence and policy. The course will cover material describing the pattern of economic development and evaluating impacts of global integration. We will start with an overview of economic development. We will then discuss poverty and inequality and their relationship with economic growth. We will cover topics on the theory of international trade and its eects on various aspects of economic development.

Material
Ray, Debraj (1998). Development Economics. Princeton University Press, Princeton, NJ. Eswaran M. and A. Kotwal (2009), Why Poverty Persists in India: An Analytical Framework for Understanding the Indian Economy, Oxford University Press. The list of additional readings can be found at the end of this outline. Almost all of the journal articles on this list can be found online through the library. Other online resources will be posted on the course web site throughout the semester: http://www.ualberta.ca/ ural/dev.html. Most of the materials will be password-protected and the password will be announced in class. You are recommended to check the class web site once a week to make sure you are aware of all the announcements and supplementary readings.

Prerequisites: ECON 2030 with a grade of C- or higher or ECON 2003 (no longer oered) with a grade of C- or higher, and ECON 2103 with a grade of C- or higher. Preclusions: This course precludes subsequent and concurrent but not prior credit for ECON 3508 (Introduction to Economic Development).

Evaluation and Important Dates

Students are expected to attend all class sessions and must complete one assignment, one paper, one midterm and one nal examination. The assignment will be distributed in the class and will be available on the class website. All students enrolled in the class are expected to take these exams on scheduled dates. Please mark the following dates: Exams or Assignments Homework Midterm Exam Paper Final Exam Share in Final Grade 10 30 20 40 100 Date October 1 October 22 November 19 TBA

Paper Assignment: Students are required to submit a paper of ten pages in length. The paper will require you to download data and estimate regression functions. The detailed description of the paper assignment will be provided in class. Satisfactory Performance Criteria: Students must fulll all of the preceding course requirements in order to achieve a passing grade (D- or higher). Failure to submit the assignment, the paper, or failure to write the midterm examination (without a documented compelling reason) will result in a grade of FND (Failure with No Deferred Final Examination Allowed). Failure to write the nal examination when the student has achieved satisfactory performance during the term will result in a grade of ABS (ABSent from a required nal examination). See Academic Regulation 2.3 for the ocial meanings of these grades, and note that it stipulates that no course grades are nal until approved by the Faculty Dean. Note also that course grades may be scaled upwards or downwards in a rank-preserving manner to better t the relevant departmental distributional norm. Application to write a deferred nal examination must be made at the Registrars Oce.

Policies

Late Assignments and Missed Midterms: There will be no make-up midterm exams or extra credit essays. The penalty for late assignments is 10 points for each day until the answer key is posted, after which point they will not be accepted. Students who can document a compelling reason for missing the midterm examination will be excused and their nal grade will be based on their performance in the rest of the coursei.e., the weight of each of the remaining evaluation instruments will rise by a factor of 10/7 (e.g., the nal examination weight will become 40% 10/7 = 57.14%). Students must inform the instructor of such an absence in advance, if possible. Academic Accommodation: If you require academic accommodation due to disability, please see me at the beginning of the semester to discuss your needs. You need to rst contact a coordinator at the Paul Menton Centre to complete the letter of accommodation. For religious as well as special needs such as pregnancy, students should consult with the instructor and equity services (ext. 5622 or www.carleton.ca/equity). Academic Integrity: Students are expected to be familiar with the academic integrity standards regarding plagiarism. For information, please see Pammett on Plagiarism and Paraphrasing at http://www.carleton.ca/economics/courses/writing-preliminaries/.

Reading List
Overview of Economic Development Ray, D. (1998). Development Economics, Chapters 2,3. Pritchett, Lant (1997). Divergence, Big Time, Journal of Economic Perspectives, (11)3: 3-17. Poverty and Inequality Denitions, Measurement and Evidence Ferreira, F. and Ravallion, M. (2008). Global Poverty and Inequality: A Review of Evidence. World Bank Policy Research Working Paper, No: 4623. Ray, D. (1998). Development Economics. Chapter 6. Poverty Alleviation Besley, T. and Coate S. (1992). Workfare versus Welfare: Incentive Arguments for Work Requirements in Poverty Alleviation Programs, American Economic Review, 82(1): 249261. Krishna, A., (2007). For Reducing Poverty Faster: Target Reasons Before People, World Development, 35(11), 1947-1960. Dollar, D. and Kraay, W. (2001). Growth is Good for the Poor, Journal of Economic Growth. 7(3), 195-225. Eswaran, M. and Kothal, A. (1994). Why Poverty Persists in India. Chapters 1- 6. Globalization Eswaran, M. and Kothal, A. (1994), Why Poverty Persists in India. Chapter 7-8. Dollar, D. and Kraay, A. (2001). Trade, Growth and Poverty, World Bank Policy Research Working Paper, No:2615. Harrison, A., McLaren, J. and McMillan, M. (2010). Recent Findings on Trade and Inequality, NBER Working Papers, No:16425. Goldberg, P. and Pavcnik. N. (2007). Distributional Eects of Globalization in Developing Countries, NBER Working Papers, No: 12885. Ray, D. (1998). Development Economics. Chapters 16, 17. Industrialization, Institutions and Development Andrew, F., Rosenzweig, M. (2004). Agricultural Productivity Growth, Rural Economic Diversity and Economic Reforms: India 1970-2000, Economic Development and Cultural Change, 52(3), 509-42. Eswaran. M. and Kothal, A. (1994). Why Poverty Persists in India , Chapter 9. Ray, D. (1998). Development Economics, Chapter 10, 13, 14. Gender Inequality (time permitting) Black, S. and Brainerd, E. (2004). Importing Inequality? The Impact of Globalization on Gender Discrimination, Industrial and Labor Relations Review, 57(4), 540-559. 3

 United Nations Development Programme (2010). Power, Voice and Rights: A Turning Point for Gender Equality in Asia and the Pacic. Human Capital Investment(time permitting) Rushi, K. and Rosenweig, M. (2003). Traditional Institutions Meet the Modern World: Caste, Gender and Schooling Choice in a Globalized Economy, MIT Department of Economics Working Papers, No: 03-23. Atal, V., Basu, K., Gay, J. and Lee, T. (2009). Literacy Traps: Society-wide Education and Individual Skill Premia, IZA Discussion Papers, No:4047.