ISS-1107 Development Economics
Code
Weight of the course
Period
Course Leader
Lecturer
Teaching Methods
Modes of Assessment
Contact
ISS-1107
3 ECTS
TERM 1
Lorenzo Pellegrini
Lorenzo Pellegrini
Participatory Lecture
Written Exam: 100%
Marja de Clercq Zubli
Learning objectives
After completion of the course, you will have knowledge about a range of economic approaches that
may be used to analyse the economic transformation of those countries known as the ‘developing
world’. It is expected that the course will help you identify the main hypotheses and processes
explaining economic growth and development. It will also help you to appreciate that many issues
surrounding economic development can only be understood if one moves from the global context to
the internal structure of developing countries to micro-level analysis. It will identify the main
hypotheses and processes explaining economic growth and development and how they relate to
policy making. All participants are expected to critically assess the limitations and strengths of the
theories presented and to understand the key aspects of alternative theories. After the course you
should be able to related economic theory and concepts to real-life situations and specific country
contexts.
Course description
This is a course in development economics for master-level students in development studies (with a
particular focus on public policy). This eight lecture course will deal with five topics and will start with a
broad discussion of the nature of economic development –Lecture 1. Lectures 2 and 3 will present the
main elements of classic and heterodox theories of economic development. Lectures 4 & 5 will
introduce students to the most prominent contemporary models of development and
underdevelopment, in particular, endogenous growth theories, debates about the ‘big push’ and the
nature and causes of low-level equilibrium (poverty) traps.
Inspired by the development constraints identified in sessions 1 to 5, each of the remaining sessions
will deal with a particular development constraint. Session 6 and 7 will deal with the complex
relationship between environment and development. Session 8 will discuss the problem of corruption
and its relationship with economic development. Throughout the course we will discuss the policy
implications issuing from the different theories in the context of real country problems. Empirical
evidence in favour and against the various theories presented will feed the discussion.
Indicative readings
Agénor, P.R. and P.J. Montiel (2008) Development Macroeconomics (3rd edn). Princeton, NJ:
Princeton University Press .
Bardhan, P.K. and C. Udry (1999) Development Microeconomics. Oxford: Oxford University Press.
Basu, K. (1997) Analytical Development Economics. Cambridge, MA: MIT Press.
Ray, D. (1998) Development Economics. Princeton, NJ: Princeton University Press.
Todaro, M.P. and S.C. Smith (2012) Economic Development (11th edn). Boston, Mass.: AddisonWesley.
Prerequisites
Basic knowledge in Economics and Mathematics for Economists is essential to follow this course. You may
refresh your knowledge in microeconomics by attending the remedial course “Intermediate Microeconomics”
(9130) and the remedial course in “Macroeconomics and Growth” (9150). You can also work through the
mathematical appendix in a standard economic textbook. The course is explicitly designed for students in
development studies, thus it is less technical than a master-level course just for economists.