Economics 355
Economic Development and Growth
Fall 2007
Dr. Léonie L. Stone
South 115B1, Office Hours: Tuesday, 2-3 and
by appointment. There will be additional office
hours each week as necessary; talk to me or
check the website for weekly additional hours.
Office: 245-5428 Home: 245-9383
Email: stone@geneseo.edu
http://www.geneseo.edu/~stone
Catalog Description:
A study of the existing disparities between developed and less developed countries, problems faced by less
developed countries, historical and modern theories regarding economic development, and an introduction to
growth theory.
Intended Learning Outcomes:
This course is designed to introduce students to the theories of economic development and growth, both
classical and modern. Throughout this course, the focus is on two simultaneous themes: economic theory and
its application to development problems; and the interaction between economic theories and the political
arena.
By the end of this course, students should be able to:
 Understand the historical patterns of development in the Western world, and how the development
of other countries has deviated from those paths.
 Explain the causes and implications of income inequality.
 Use both classical and modern theories of growth and development to analyze the problems of the
developing world.
 Understand the roles of population growth and human capital in the development problem.
 Relate theories of international trade to growth in less-developed countries.
 Analyze macroeconomic policies aimed at facilitating development and their implications.
 Use the tools developed in this class to analyze the development problems of a specific country.
How This Course Relates to the School of Business Educational Objectives and Course Sequence:
 This course emphasizes critical thinking and the application of both logical and quantitative skills.
To succeed in this course, you must communicate clearly and effectively in writing, and you must
learn to relate graphing techniques to written arguments.
 This courses stresses the application of economic theory to real-world economic problems in
development economics that are relevant to economics, international relations, and business
administration students, as well as others.
 This course is an elective course in the economics sequence. It builds on skills learned in Econ 101
and 102, which are enforced prerequisites to this course.
Textbook:
Todaro and Smith, Economic Development, 9th edition (Addison-Wesley). Subscription to The Economist
is REQUIRED. To register for an academic price ($19.95 for 12 weeks), go to
www.economistacademic.com, and use this registration code: 3433.
Grading:
Your grade will be based on three exams (10/10/30% each), class participation and reading assignments
(15%), and the term project (35%). The third exam is given during the final period. Most exams will include
some take-home component. Make-ups on exams will be given only in the case of documented emergencies.
Consideration will be given to exceptional class participation in the case of borderline grades.
What PARTICIPATION Means:
You are, in addition to the assignments and end-of-semester presentation, responsible for keeping up with
current events that are relevant to international macroeconomics in general and specifically to the country
that you have chosen (and things that may have an impact on it). Every Friday we will have a current events
discussion, and you are expected to be prepared for this. Participation is 15% of your grade. If you do not
participate, the grade you will receive is 0%… which means that if you get 100% on everything else, the
maximum grade you can receive is a B. (Participation also includes general class discussion and
attendance/discussion at the presentations of others.)
The Country Analysis Project:
During the first week of class, you will choose a country for your term project. This must be a developing
country, not an industrialized country. You are, in addition to the end-of-semester presentation and country
analysis, responsible for keeping up with current events in the country that you have chosen. Every Friday
we will have a current events discussion, and you are expected to be prepared for this. Further information
on the country analysis and a suggested outline will be distributed in the second week of class. Countries are
selected on a first-come, first-served basis with approval of the professor.
You will present your country analysis in a term paper and presentation at the end of the semester.
Presentations will be in the last two weeks of class. Papers are due the last day of class, although earlier
submission is encouraged.
Exam Schedule:
Exam 1: Tuesday, September 25
Exam 2: Tuesday, October 30
Exam 3/Final: Tuesday, December 18, 8:00-11 a.m.
Note that, other than the final, the exam schedule in this class is tentative and may change, depending on coverage of
material and other events, such as Fed Challenge. We may have the final exam early and schedule presentations during
the final period (attendance and participation is mandatory).
Course Schedule:
(Chapter dates listed are tentative and subject to change… probably immediately!)
Week 1: August 28, 30
Chapter 1: How the Other Half Live
Chapter 2: Comparative Development
Week 2: September 4, 6
Chapter 3: Classic Theories of Economic Development
Week 3: September 11, 14
Chapter 4: Contemporary Models of Development and Underdevelopment
Week 4: September 18, 20
Chapter 5: Poverty, Inequality, and Development
Chapter 6: Population Growth
Week 5: September 25, 27
Chapter 7: Urbanization and Rural-Urban Migration
Week 6: October 2, 4
Chapter 8: Human Capital
Chapter 9: Agricultural Transformation and Rural Development
Week 7: October 9, 11
Chapter 10: The Environment and Development
NO CLASS OCTOBER 9-FALL BREAK
Week 8: October 16, 18
Chapter 11: Planning Issues
Week 9: October 23, 25
Chapter 12: Trade and Development
Week 10: October 30, November 1
Chapter 13: The Trade Policy Debate
Week 11: November 6, 8
Chapter 14: Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization
Controversy
Week 12: November 13, 15
Other topics as time permits.
Week 13: November 20
TBA
Week 14: November 27, 29
Presentations
Week 15: December 4, 6
Presentations
Final: Tuesday, December 18th , 8:00-11 a.m., same room
(No early finals will be given under ANY circumstances.)