University of Oxford Undergraduate Options Finals Course Economics of Developing Countries Reading List 2011/12 Readings for this

course can be broadly divided into eight categories. This document is intended as a guide and a supplemental resource: lecturers on specific topics may add further readings or may emphasize select readings from within those presented here. 1. Poverty and inequality 2. Growth 3. Politics and institutions 4 Education, health and nutrition 5. Rural institutions and market failures 6. Labor and dualism 7. International Trade and Industrialization 8. International Capital Flows 1. Poverty and inequality 1.1. Measurement issues *Ray, D. (1998), Development Economics, chapters 6 and 8 Basu, K.(2000), On the Goals of Development, in Meier, G.M. and Stiglitz, J.E. (eds.). Frontiers of Development Economics: The Future in Perspective *Chen, S. and M. Ravallion, (2000). How Did the Worlds Poorest Fare in the 1990s? Policy ResearchWorking Paper 2409. World Bank, Development Research Group, Washington, D.C.http://econ.worldbank.org/docs/1164.pdf Fields, G.S., (2000), Distribution and Development, MIT Press and Russell Sage, esp chapter 4. *Kanbur, R. and L.Squire (2000), The Evolution of Thinking about Poverty, in G.Meier and J.Stiglitz, Frontiers of Development Economics, Oxford University Press. *Ravallion, M., G.Datt, and D. van de Walle. 1991. Quantifying Absolute Poverty in the Developing World. Review of Income and Wealth 40 (December): 35976. Sen, A. (1983), Poor Relatively Speaking, Oxford Economic Papers, vol.35, pp. 15369, reprinted in Resources, Values and Development, Oxford University Press (reprinted 1999), pp.325-345.. Sen, A.K. (1988), The Concept of Development, chapter 2 in H.Chenery and T.N.Srinivasan, Handbook of Development Economics, vol.1. 1.2. Policy issues

*Anand, S. and M.Ravallion, (1993), "Human development in poor countries: on the role of private incomes and public services", Journal of Economic Perspectives, 1 (1). *World Bank, (2000), Attacking Poverty, The World Development Report 2000/01, World Bank, Oxford University Press. http://www.worldbank.org/poverty/wdrpoverty/report/index.htm Lipton, M. and M.Ravallion (1995), Poverty and Policy, in Behrman and Srinivasan (eds.), Handbook of Development Economics, vol.3A. 1.3. Famine and other crises

*Dreze, J. and A.Sen (1989), Hunger and Public Action, Oxford: Clarendon Press. *Ravallion, M. (1987), Towards a Theory of Famine Relief Policy Journal of Public Economics; 33(1), June 1987, pages 21-39. *Sen, A., (1981), Poverty and Famines, Oxford University Press, chapter 1 and examples, such as chapter 9 on Bangladesh. Dercon, S. (2002), Income risk, coping strategies and safety nets, forthcoming World Bank Research Observer. http://www.wider.unu.edu/research/2000-20013.2.publications.htm (see also other contributions on this webpage, e.g. Morduch, Ravallion, Ligon). Devereux, S. (1994), Theories of Famine Ravallion, M. (1992), On Hunger and Public Action: a review article on the book by Dreze and Sen , World Bank Economic Review, vol.7, no.1. Sen, A. (1999), Development as Freedom, Oxford University Press. e.g. Chapter 7
2. Growth 2.1. General

*Mankiw, G., D.Romer and D.Weil (1992), A contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, vol.107, pp.407-437. *Levine, R. and D. Renelt (1992) A Sensitivity Analysis of Cross-Country Growth Regressions, American Economic Review, 82 (4), 942-963. *Ray, D. (1998), Development Economics, Chs. 1 to 5. *Sala-I-Martin, X. (1997), I Just Ran Two Million Regressions, The American Economic Review,Vol. 87, No. 2 (May 1997) pp. 178-183 *Temple, J. (1997), The New Growth Evidence, Journal of Economic Literature, vol.XXXVII (March 1999), pp.112-156 *Easterly and Levine (2001), Its not Factor Accumulation: Stylized Facts and Growth Models. The World Bank Economic Review, 15(2):177-219. 2.2. Role of Institutions *North, D. (1989). Institutions and Economic Growth: An Historical Introduction, World Development, 17(9), 1319-1332. *North, D. (1994). Economic Performance Through Time, American Economic Review, 84(3), 359-368. *Hall, R., and C. Jones (1999), Why do some countries produce so much more output per worker than others?, Quarterly Journal of Economics, 114: 83-116. *Engerman, S., and K. Sokoloff (2001), Inequality, Institutions, and Differential Paths of Growth Among New World Economies, Working Paper, University of California, Los Angeles. *Acemoglu, D., Johnson, S. and Robinson J., (2001), The Colonial Origins of Comparative Development: An Empirical Investigation, American Economic Review, December, volume 91, pp. 1369-1401.

*Acemoglu, D., S. Johnson, and J. Robinson. (2002). Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution, Quarterly Journal of Economics, 117, 1231-1294. *Acemoglu, D., S. Johnson, and J. Robinson. (2005a), Institutions as the Fundamental Cause of Long-Run Growth, Handbook of Economic Growth, 1: 385-472. *Acemoglu, D., S. Johnson, and J. Robinson. (2005b). The Rise of Europe: Atlantic Trade, Institutional Change and Economic Growth, American Economic Review, 95(3), 546-579. *Acemoglu, D., and S. Johnson. (2005). Unbundling Institutions, Journal of Political Economy, 113(5), 949-995. *Rodrik, D. (2000). Institutions for High-Quality Growth: What They Are and How to Acquire Them, Studies in Comparative International Development, 35(3), 3-31. *Rodrik, D., A. Subramanian, and F. Trebbi. (2004). Institutions Rule: the Primacy of Institutions over Geography and Integration in Economic Development, Journal of Economic Growth, 9, 131-165. *Bhattacharyya, S (2009) Unbundled Institutions, Human Capital and Growth, Journal of Comparative Economics, 37, pp. 106-120. *Bhattacharyya, S (2009) Institutions, Diseases and Economic Progress: A Unified Framework, Journal of Institutional Economics, 5(1), pp. 65-87. *Bhattacharyya, S (2011) Growth Miracles and Growth Debacles: Exploring Root Causes, Cheltenham: Edward Elgar. Easterly, W., and R. Levine. (2003). Tropics, Germs, and Crops: How Endowments Influence Economic Development, Journal of Monetary Economics, 50(1), 3-39. *Landes, D. (2000). Culture Makes Almost all the Difference, in Harrison, L., and S. Huntington, eds., Culture Matters: How Values Shape Human Progress, New York: Basic Books. 2.3 The role of human capital *Benhabib, J. and Spiegel, M.M. (1994). The role of human capital in economic development: evidence from aggregate cross-country data. Journal of Monetary Economics, 34, 143-173. *Mokyr, J. (1990). The Lever of Riches: Technological Creativity and Economic Change, New York: Oxford University Press. *Mokyr, J. (2001). The Rise and Fall of the Factory System: Technology, Firms, and Household since the Industrial Revolution, Carnegie-Rochester Conference Series on Public Policy, 55, 1-45. *Pritchett, L. (1999), Where has all the education gone?, World Bank Working Paper, 1581(see WB growth web page). *Glaeser, E., R. La Porta, F. Lopez-de-Silanes, and A. Shleifer (2004) Do Institutions Cause Growth?, Journal of Economic Growth, 9, pp. 271-303. 2.4. New Growth Theory and Poverty Traps *Azariadis (2006), The Theory of Poverty Traps, in Bowles, Durlauf and Hoff (eds), Poverty Traps.

*Durlauf, Johnson and Temple, Growth Econometrics, in Handbook of Economic Growth Vol.1A. *Hoff and Stiglitz (2001), Modern Economic Theory and Development. In Meier and Stiglitz (eds) Frontiers of Development Economics. OUP. *Murphy, Shleifer and Vishny (1989), Industrialization and the Big Push. Journal of Political Economy, XCVII:1003-26. *Pack (1994), Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings. Journal of Economic Perspectives 8:55-72. *Rodriguez-Clare (1996), The Division of Labour and Economic Development. Journal of Development Economics, 49:3-32. *Rodrik (1994), Getting Intervention Right: How South Korea and Taiwan Grew Rich. NBER working paper 4964. *Rodrik (1996), Coordination Failures and Government Policy: a Model with Applications to East Asia and Eastern Europe. Journal of International Economics, 40:1-22 *Romer, P (1990), Endogenous Technological Change, Journal of Political Economy, 98 (5), Part 2, S71-S102. *Romer, P (1994), The Origins of Endogenous Growth, Journal of Economic Perspectives, 8 (1), 3-22. *Temple (1999), The New Growth Evidence. Journal of Economic Literature, XXXVII:112-56. *Solow, R. (1994) Perspectives on Growth Theory, Journal of Economic Perspectives, 8 (1), 45-54. 2.5. Africas dismal experience *Easterly, W., and R. Levine. (1997). Africas Growth Tragedy: Policies and Ethnic Divisions, Quarterly Journal of Economics, 112(4), 1203-1250. *Collier, P. and J.W.Gunning, (1999) Explaining African Economic Performance, Journal of Economic Literature, vol XXXVII (March). *Collier, P. and J.W.Gunning (1999), Why has Africa grown slowly, Journal of Economic Perspectives, vol.13.no.3 Robinson, J. (2002). States and Power in Africa by Jeffrey I. Herbst: A Review Essay, Journal of Economic Literature, 60, 510-519. *Nunn, N (2008) The Long-Term Effects of Africas Slave Trades, Quarterly Journal of Economics, 123(1), pp. 139-176. *Bhattacharyya, S (2009) Root Causes of African Underdevelopment, Journal of African Economies, 18(5), pp. 745-780. 3. Institutions and the political economy of development *Collier, Paul (2007) The Bottom Billion. Oxford: Oxford University Press. *Bhattacharyya, S (2011) Growth Miracles and Growth Debacles: Exploring Root Causes, Cheltenham: Edward Elgar.

3.1. Corruption and governance *P. Mauro (1995). Corruption and Economic Growth. Quarterly Journal of Economics, 110(3): 681712. Shleifer, Andrei and Robert W. Vishny (1993). Corruption. Quarterly Journal of Economics, 108(3): 599 617. *Bardhan, P. (1997). Corruption and Development: A Review of Issues, Journal of Economic Literature, 35(3), 1320 1346.
*Treisman, D., 2000. The causes of corruption: a cross-national study. Journal of Public Economics 76, 399-457. Fan, C.S., Lin, C., Treisman, D., 2009. Political decentralization and corruption: evidence from around the world. Journal of Public Economics 93, 14-34.

3.2. Elections, accountability and democracy in developing countries Chauvet, Lisa and Paul Collier (2007). Elections and Reform in Failing States. Mimeo, Oxford University. Finan, Fred and Claudio Ferraz (2007). Exposing Corrupt Politicians: The Effect of Brazils Publicly Released Audits on Electoral Outcomes. IZA Discussion Paper 2836. McMillan, John and Pablo Zoido (2004). How to Subvert Democracy: Montesinos in Peru. Journal of Economic Perspectives, 18(4): 69 92. Pande, Rohini (2003). Can Mandated Political Representation Increase Influence for Disadvantaged Minorities? Theory and Evidence from India. American Economic Review, 93(4): 1132 1151. Przeworski, Adam (2004). Democracy and Economic Development. In Edward Mansfield and Richard Sisson, eds., The Evolution of Political Knowledge. Columbus: Ohio State University Press. Olken, B. (2007). Monitoring Corruption: Evidence from a Field Experiment in Indonesia, Journal of Political Economy, 115(2), 200-249. 3.3. Natural resources, rent seeking, and growth

*Bates, Robert . Markets and States in Tropical Africa: The Political Basis of Agricultural Policies. Berkeley: University of California Press. Bates, Robert and Paul Collier (1993). The politics and economics of policy reform in Zambia. In Robert Bates and Anne Krueger, eds., Political and Economic Interactions in Economic Policy Reform. Oxford: Basil Blackwell Press. *Collier, Paul and Anke Hoeffler (2007). Testing the Neocon Agenda: Democracy in Resource-Rich Societies. Mimeo, Oxford University. Krueger, Anne (1974). The political economy of the rent-seeking society. American Economic Review, 64(3): 291 303. Mehlum, Halvor, Karl Moene, and Ragnar Torvik, Institutions and the Resource Curse, Economic Journal, 116(508): 1 20. *Robinson, James, Ragnar Torvik and Thierry Verdier (2006). Political foundations of the resource curse. Journal of Development Economics, 79(2): 447 468.

*Sachs, Jeffrey and Andrew Warner (1997). Natural resource abundance and economic growth revised version, Working paper, Harvard University. *Bhattacharyya, S., and R. Hodler (2010). Natural Resources, Democracy and Corruption, European Economic Review, 54, 608 621. 3.4. Conflict, cooperation, and ethnicity Alesina, Alberto, Arnaud Devleeschauwer, William Easterly, Sergio Kurlat, and Romain Warcziag (2003). Fractionalization. Journal of Economic Growth, 8(2): 155194. Collier, Paul and Anke Hoeffler (2003). Aid, policy and growth in post-conflict societies. European Economic Review, 48: 1125 1145. *Collier, Paul and Anke Hoeffler (2004) Greed and Grievance in Civil War. Oxford Economic Papers, 56(4): 563 595. *Easterly, William and Ross Levine (1997), Africas Growth Tragedy: Policies and Ethnic Divisions. Quarterly Journal of Economics, 112(4), 1203-1250. *Miguel, Edward, Shanker Satyanath, and Ernest Sergenti (2004). Economic Shocks and Civil Conflict: An Instrumental Variables Approach. Journal of Political Economy, 112(4), 725 753. Miguel, Edward (2004). Tribe or nation? Nation-building and public goods in Kenya versus Tanzania. World Politics, 56(3), 327-362. 4. Education, health and nutrition *Ray, D. (1998), Development Economics, Chapter. 9 4.1. Education *Bennell, P. (1996), "Rates of return to education: does the conventional pattern prevail in Sub-Saharan Africa?", World Development, 24 (1) Bennell, P. (1995), Using and abusing rates of return: a critique of the World Banks 1995 education sector review, International Journal of Educational Development, vol.16, no.3, pp.235-248. *Case, A, 2001, "The Primacy of Education", Research Program in Development Studies, Princeton University, Working paper no 203 Colclough, C. (1996), "Education and the market: which parts of the neoliberal solution are correct?", World Development, 24 (4) *Pritchett, L. (1999), Where has all the education gone?, World Bank Working Paper, 1581. *The PROBE Team, (1999), Public Report on Basic Education in India, Oxford University Press, Delhi. **Schultz, Paul (2003) Evidence of returns to schooling in Africa from household surveys, Yale Univ Economic Growth Center, Discussion Paper no. 875. Schultz, T.P. (1988), "Education investment and returns", H. Chenery and T.N. Srinivasan (eds), Handbook of Development Economics, Vol. I. World Bank, (1995), World Development Report, Oxford University Press.

4.2. Health and nutrition **Ray, D. (1998), Development Economics, chapter 8. *Ainsworth, M., K. Beegle and A. Nyamete (1996). The Impact of Womens Schooling on Fertility and Contraceptive Use: A Study of 14 Sub-Saharan African Countries. World Bank Economic Review, 10(1). Behrman, J.R. and A.Deolalikar, (1988), Health and Nutrition, in H.Chenery and T.N. Srinivasan (eds.) Handbook of Development Economics, pp.631-71. Behrman, J.R.(1993), The economic rationale for investing in nutrition in developing countries, World Development, vol.21(11), pp.1749-1771. *Case, A, 2001, "Health, Income and Economic Development",", Research Program in Development Studies, Princeton University, Working paper no 202, Forthcoming, Annual World Bank Conference on Development Economics 2001 *Deininger, K. and P. Mpuga (2005) Economic and Welfare Impact of the Abolition of Health User Fees: Evidence from Uganda. Journal of African Economies 14(1), pp. 55-91. *Dreze, J. and M. Murthi (2001). Fertility, Education and Development: Evidence from India. Population and Development Review, 27(1). Grootaert, C. and R.Kanbur (1995), Child labour an economic perspective, International Labour Review, vol.134, no.2, pp.187-203. *Strauss, J. and D.Thomas (1998), Health, Nutrition and Economic Development, Journal of Economic Literature vol.36, no.2, pp.861-902. Svedberg, P. (2000), Poverty and Undernutrition, Oxford University Press World Bank, (1993), World Development Report, Oxford University Press. 5. Rural institutions and market failures Ray, D. (1998), Development Economics, Ch. 11 (factor markets),12 (land),13 (labour),14 (credit),15 (insurance). Bardhan, P. (1989), The Economic Theory of Agrarian Institutions, Clarendon (selected chapters for different factor markets; useful chapter by Stiglitz) Stiglitz, J. (1989), "Markets, market failures and development", American Economic Review Papers and Proceedings, 1989 (useful introduction) 5.1. Land Binswanger, H, K. Deininger and G. Feder, (1995), "Power distortions, revolts and reforms in agricultural relations", in J. Behrman and T.N. Srinivasan (eds), Handbook of Development Economics, Vol. 3, (exhaustive survey on land) de Janvry, A., G.Gordillo, J.P.Platteau and E.Sadoulet (2001), Access to Land Rural Poverty and Public Action, Oxford University Press. (useful Introductory chapter) *Carter, M.R. and B.L.Barham (1996), Level Playing Fields and Laissez-Faire: Postliberal Development Strategy in Inegalitarian Agrarian Economies, World Development, vol.24, no.7, pp.1133-1150.

* Banerjee, Abhijit (1999). Prospects and Strategies for Land Reforms, in B. Pleskovic and J. Stiglitz (eds.), Annual World Bank Conference on Development Economics 1999. Washington, DC: World Bank, pp. 253-284. Besley, T. and R. Burgess (2000). Land reform, poverty reduction, and growth: evidence from India Quarterly Journal of Economics, 115(2): 389-430. 5.2. Credit markets Armendriaz de Aghion, B. and J. Morduch. 2005. The Economics of Microfinance. MIT Press, Cambridge, MA, 2005. Besley, T. (1994), How do market failures justify interventions in rural credit markets, World Bank Research Observer, vol.9, no.4, pp.27-47. Bell, C. (1988), "Credit markets and interlinked transactions", in H. Chenery and T.N. Srinivasan (eds), Handbook of Development Economics, Vol. 1. Bell, C. and T.N. Srinivasan, (1989) "Interlinked transactions in rural markets: an empirical study of Andhra Pradesh, Bihar and Punjab", Oxford Bulletin of Economics and Statistics, 51 (1) Besley, T. (1995). Nonmarket institutions for Credit and Risk Sharing in Low-Income Countries. Journal of Economic Perspectives. Besley, T. and S.Coate (1995), Group Lending, Repayment Incentives and Social Collateral, Journal of Development Studies, vol.46, pp.1-18. Hoff, K. and J. Stiglitz, (1990), "Introduction: imperfect information and rural credit markets - puzzles and policy perspectives", World Bank Economic Review, 1990 (see also Aleem and Udry in the same issue) Karlan, Dean S. (2007). Social Connections and Group Banking. Economic Journal, 117:F52F84, February. Pitt, Mark and Khandker, Shahidur (1998). The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter? Journal of Political Economy, 106(5):958996. Morduch, Jonathan. The Microfinance Promise. Journal of Economic Literature, 37(4):15691614, December 1999. Morduch, Jonathan. The Microfinance Schism. World Development, 28(4):617629, 2000. 5.3. Insurance Dercon (2002) Income Risk, Coping Strategies and Safety Nets, World Bank Research Observer, December, Vol. 17 (2), pp. 141-66. Dercon (2007) Insurance for the Poor? In A. Barrientos and D. Hulme (eds.), 2007, Social Protection for the Poor and the Poorest: Risk, Needs and Rights. Palgrave. Fafchamps, Marcel. (1992). Solidarity Networks in Preindustrial societies: Rational Peasants with a Moral Economy. Economic Development and Cultural Change, 41(1):147174. See also: Chapters in S. Dercon, ed., Insurance Against Poverty, Oxford: Oxford University Press, 2003. (eg., Banerjee).

6. Labor and dualism **Ray, D. (1998), Development Economics, 1998, Chapter 10 (dualism and migration) 6.1. Dualism and Development Strategies Bardhan, P. and C.Udry (1999) Development Microeconomics, chapter 5 (migration) and 15 (dual economy). Rather advanced Basu, K., Analytical Development Economics: the less developed economy revisited, 1997. Chapter 7-8. They have concise formal treatments of the models involved. Chapter 9 introduces further issues on urban labour markets. Bates, Robert H. (1981). Markets and States in Tropical Africa: The Political Basis of Agricultural Policies. University of California Press, Berkeley, 1981. Dercon, S. (2008). Rural Poverty: Old Challenges in New Contexts, forthcoming World Bank Research Observer (see S.D. personal website for early version). Eswaran, M. and A.Kotwal (1993), A theory of real wage growth in LDCs, Journal of Development Economics, 42, pp.243-269. *Eswaran, M. and A.Kotwal (1995), Why poverty persists in India, Oxford University Press (short monograph version of paper above, without any maths. Must read this.) Lewis, W. Arthur. Economic Development with Unlimited Supplies of Labour. Manchester School, 28(2):139191, May 1954. (The classic. A good read.) Ranis, G. and J. C. Fei (1961). A Theory of Economic Development, American Economic Review, 51(4), 533565. *Ravallion, M. and G.Datt, When is growth pro-poor? Evidence from the diverse experiences of Indias states, World Bank Policy Research Working Paper, no.2263, (downloadable from WB web site, go to research, type in search propoor and you will find it) Ravallion, M. and G. Datt (2002), Why has economic growth been more pro-poor in some states of India than others? Journal of Development Eocnomics, 68, 381400. *Ravallion, M, (1996), How Important to Indias Poor is the Sectoral Composition of Economic Growth?, World Bank Economic Review, 10(1): 1-25. Sen, A. K. (1967). Surplus Labour in India: A Critique of Schultzs Statistical Test, Economic Jorunal, 77(305), 154161. Vines, D. and A. Zeitlin (2008), Dual economies, in S. N. Durlauf and Lawrence E.Blume, eds., The New Palgrave Dictionary of Economics, 2nd edition. Palgrave Macmillan. 6.2. Migration de Haan, A. (1999), Livelihoods and Poverty the Role of Migration a Critical Review of the Migration Literature, Journal of Development Studies, vol.36, no.2, pp.1-47. *Ghatak, A. P. Levine and S. Wheatley Price, (1996),, "Migration theories and evidence: an assessment", Journal of Economic Surveys, 10 (2)

Kanbur, S. M. (1981). Short run growth effects in a model of costly migration with borrowing constraints: Will rural development work? in Microeconomic Analysis: Essays in Microeconomics and Economic Development, ed. D. Currie, D. Peel, and W. Peters, pp. 386412, Croom Helm, London. Stark, O. (1991), The Migration of Labour, Blackwells. 7. International Trade and Industrialization 7.1. International Trade Overview Krugman, P R and Obstfeld, M, International Economics: Theory and Policy (fifth edition, 2000) Frankel, J. and D. Romer (1999) Does Trade Cause Growth, American Economic Review, 89(3) June. *Rodrik, Dani, "Trade Policy and Economic Growth: A Skeptic's Guide to the CrossNational Evidence," (with Francisco Rodrguez), Macroeconomics Annual 2000, eds. Ben Bernanke and Kenneth S. Rogoff, MIT Press for NBER, Cambridge, MA. (see his webpage for other sources) *Winters, L.A., N. McCulloch, and A. McKay (2004) Trade Liberalization and Poverty: the Evidence so Far, Journal of Economic Literature, 42, March. 7.2. Industry and Exports Hall, R. and C. Jones. (1999) Why Do Some Countries Produce So Much More Output Per Worker Than Others? Quarterly Journal of Economics, 114(1). Owens, T. and A. Wood. (1996) Export Oriented Industrialization through Primary Processing? World Development 25(9). Teal, F. (1999) Why Can Mauritius Export Manufactures and Ghana Not? World Economy, 22(7). Tybout, J. (2000) Manufacturing Firms in Developing Countries: How Well Do They Do and Why? Journal of Economic Literature, 38. Wood, A. (2000) Why Does Zimbabwe Export Manufactures, and Uganda Not? Econometrics Meets History. Journal of Development Studies, 37(2). 8. International Capital Flows 8.1. International Capital Flows Agenor, P.R. and P.Montiel (2000), Development Macroeconomics, Ch.16 *Agenor, P., M. Miller, D. Vines and A.Weber (1999), The Asian Financial Crisis: Causes, Contagion and Consequences, Cambridge University Press. Calvo, G.A., L. Leiderman and C.M.Reinhart (1996), "Inflows of capital to developing countries in the 1990s", Journal of Economic Perspectives, 10 (2) *Krugman, P. (1998) "Saving Asia: It's Time to Get Radical" Fortune Investor September 7, on http://web.mit.edu/krugman/www/ and the link to the Asia Crisis website

Krugman, P R and Obstfeld, M, International Economics: Theory and Policy (fifth edition, 2000) 8.2. Aid Alesina, A., and D. Dollar (2000): Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, 5(1). *Banerjee, A., ed. (2007): Making Aid Work, MIT Press. Burnside, C., and D. Dollar (2000): Aid, Policies, and Growth," American Economic Review, 90(4), 847-68 *Collier, P., and D. Dollar (2002): Aid Allocation and Poverty Reduction," European Economic Review, 46(8), 1475-1500 *Easterly, W. (1999): The Ghost of Financing Gap: Testing the Growth Model Used in the International Financial Institutions," Journal of Development Economics, 60(2), 423-38. Feyzioglu, T., V. Swaroop, and M. Zhu (1998): A Panel Data Analysis of the Fungibility of Foreign Aid," World Bank Economic Review, 12(1), 29-58 Kanbur, R. (2000): Aid, Conditionality and Debt in Africa," in Foreign aid and development: Lessons learnt and directions for the future, ed. by F. Tarp, pp. 40922. Routledge, London. Pack, H., and J. R. Pack (1993): Foreign Aid and the Question of Fungibility," Review of Economics and Statistics, 75(2), 258-65. Radelet, S., M. Clemens, and R. Bhavnani (2005): Aid and Growth," Finance and Development, 42(3), 16-20, Center for Global Development, Washington, DC. *Svensson, J. (2000): When Is Foreign Aid Policy Credible? Aid Dependence and Conditionality," Journal of Development Economics, 61(1), 61-84, Svensson, J. (2003): Why Conditional Aid Does Not Work and What Can Be Done about It?," Journal of Development Economics, 70(2), 381-402. Van de Walle, D., and R. Mu (2007): Fungibility and the flypaper effect of project aid: Micro-evidence for Vietnam," Journal of Development Economics, 84, 667-685.