University of Essex

EC902-7-SP-CO:
Economic Development Theory

The details

Year: 2023/24

Department: Economics

Campus: Colchester Campus

Term: Spring

Level: Postgraduate: Level 7

Status: Current

Start date: Monday 15 January 2024

End date: Friday 22 March 2024

Credits: 20

Last updated: 24 October 2023

Requisites for this module

Pre-requisites: (none)

Co-requisites: (none)

Pre and / or co-requisites: (none)

Prohibited modules: (none)

Key module (requisite for): (none)

Key module for

MA L16412 International Development,
MSC L16512 Quantitative International Development

Module description

This module examines the distinctive features of less developed economies.

The module will review theories that try to explain persistent poverty and inequality in those economies. Issues such as child labour, inequality, growth, poverty traps, measurement, and urban-rural migration are examined theoretically. The second half of the module examines current empirical literature through carefully examining journal articles and working papers.

Module aims

The aim of this module is:

To provide students with an an in-depth understanding of some of the problems facing developing countries and a toolkit to analyze policy programs both theoretically and empirically.

Module learning outcomes

By the end of this module, students will be expected to be able to:

Carry out advanced research into, and to act as policy advisors on, issues related to development economics.

Be capable of evaluating policies in the context of the subject matter of the course from an economic perspective.

Skills for your Professional Life (Transferable Skills)

By the end of this module, students will be expected to develop a range of employability skills including:

Academic skills.

Professional working skills.

External awareness.

Numeracy skills.

Module information

This module will examine issues of behavioural economics, public infrastructure, and how government provision of programs effect child development. The empirical part of the module will focus on micro-econometric studies and will introduce students to many new techniques used to evaluate policy programs. The common thread in linking the theoretical and empirical parts of the module is the attempt to identify policy options and prescriptions that can be used to alleviate many burdens - such as poverty and inequality - faced by less developed economies.

Feedback for this module will occur through class meetings where we will go over the answers to problem sets and where you will be able to ask questions about your own method of solution; office hours where any additional questions can be addressed. You should be sure that you use these methods to understand how to improve your own performance. Please go over past exam questions and discuss your suggested answers in office hours throughout the term.

Learning and teaching methods

This module will be delivered via:

One 2-hour lecture per week.

Bibliography

Basu, K. and Basu, K. (1997a) Analytical development economics: the less developed economy revisited. Cambridge, Ma: MIT Press. Available at: https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=11337.
Basu, K. and Basu, K. (1997e) Analytical development economics: the less developed economy revisited. Cambridge, Ma: MIT Press. Available at: https://essex.alma.exlibrisgroup.com/view/action/uresolver.do?operation=resolveService&package_service_id=3853088750007346&institutionId=7346&customerId=7345.
Balboni, C. et al. (2022) ‘Why Do People Stay Poor?’, The Quarterly Journal of Economics, 137(2), pp. 785–844. Available at: https://doi.org/10.1093/qje/qjab045.
Kremer, M. (1993) ‘The O-Ring Theory of Economic Development’, The Quarterly Journal of Economics, 108(3), pp. 551–575. Available at: https://doi.org/10.2307/2118400.
Young, A.A. (1928) ‘Increasing Returns and Economic Progress’, The Economic Journal, 38(152). Available at: https://doi.org/10.2307/2224097.
Ray, D. (1998e) Development economics. Princeton, N.J.: Princeton University Press. Available at: https://www-jstor-org.uniessexlib.idm.oclc.org/stable/j.ctvcm4hmx.
Banerjee, A.V. and Newman, A.F. (1993) ‘Occupational Choice and the Process of Development’, Journal of Political Economy, 101(2), pp. 274–298. Available at: https://doi.org/10.1086/261876.
Romer, P.M. (1994) ‘The Origins of Endogenous Growth’, Journal of Economic Perspectives, 8(1), pp. 3–22. Available at: https://doi.org/10.1257/jep.8.1.3.
Solow, R.M. (1994) ‘Perspectives on Growth Theory’, Journal of Economic Perspectives, 8(1), pp. 45–54. Available at: https://doi.org/10.1257/jep.8.1.45.
Bardhan, P.K. and Udry, C. (1999d) Development microeconomics. Oxford: Oxford University Press. Available at: https://academic.oup.com/book/27501?login=true.
Basu, Kaushik and Van, Pham Hoang (no date) ‘The Economics of Child Labor’, The American economic review, 88(3). Available at: https://search-ebscohost-com.uniessexlib.idm.oclc.org/login.aspx?direct=true&db=bsu&AN=838076&site=ehost-live&authtype=sso&custid=s9814295.
Swinnerton, K.A. and Rogers, C.A. (1999) ‘The Economics of Child Labor: Comment’, American Economic Review, 89(5), pp. 1382–1385. Available at: https://doi.org/10.1257/aer.89.5.1382.
Edmonds, E.V. and Schady, N. (2012) ‘Poverty Alleviation and Child Labor’, American Economic Journal: Economic Policy, 4(4), pp. 100–124. Available at: https://doi.org/10.1257/pol.4.4.100.
Sen, A. (1976) ‘Poverty: An Ordinal Approach to Measurement’, Econometrica, 44(2). Available at: https://doi.org/10.2307/1912718.
Deaton, A. (2005) ‘Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)’, Review of Economics and Statistics, 87(1), pp. 1–19. Available at: https://doi.org/10.1162/0034653053327612.
John, H. and Todaro, M.P. (1970) ‘Migration, Unemployment and Development - A Two-Sector Analysis’, The American Economic Review, 60(1). Available at: https://www.jstor.org/stable/1807860.
‘Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh’ (2014) Econometrica, 82(5), pp. 1671–1748. Available at: https://doi.org/10.3982/ECTA10489.
Duflo, E. (2003) ‘Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa’, The World Bank Economic Review, 17(>1), pp. 1–25. Available at: https://doi.org/10.1093/wber/lhg013.
Browning, M. and Chiappori, P.A. (1998) ‘Efficient Intra-Household Allocations: A General Characterization and Empirical Tests’, Econometrica, 66(6). Available at: https://doi.org/10.2307/2999616.
Udry, C. (1996) ‘Gender, Agricultural Production, and the Theory of the Household’, Journal of Political Economy, 104(5), pp. 1010–1046. Available at: https://doi.org/10.1086/262050.
Acemoglu, D., Johnson, S. and Robinson, J.A. (2001) ‘The Colonial Origins of Comparative Development: An Empirical Investigation’, American Economic Review, 91(5), pp. 1369–1401. Available at: https://doi.org/10.1257/aer.91.5.1369.
Nunn, N. and Wantchekon, L. (2011) ‘The Slave Trade and the Origins of Mistrust in Africa’, American Economic Review, 101(7), pp. 3221–3252. Available at: https://doi.org/10.1257/aer.101.7.3221.
Di Tella, R., Galiant, S. and Schargrodsky, E. (2007) ‘The Formation of Beliefs: Evidence from the Allocation of Land Titles to Squatters’, The Quarterly Journal of Economics, 122(1), pp. 209–241. Available at: https://doi.org/10.1162/qjec.122.1.209.
Braverman, A. and Stiglitz, J.E. (1982) ‘Sharecropping and the interlinking of agrarian markets’, The American economic review, 72(4). Available at: https://search-ebscohost-com.uniessexlib.idm.oclc.org/login.aspx?direct=true&db=bsu&AN=4504714&site=ehost-live&authtype=sso&custid=s9814295.
Banerjee, A.V., Gertler, P.J. and Ghatak, M. (2002) ‘Empowerment and Efficiency: Tenancy Reform in West Bengal’, Journal of Political Economy, 110(2), pp. 239–280. Available at: https://doi.org/10.1086/338744.
Goldstein, M. and Udry, C. (2008) ‘The Profits of Power: Land Rights and Agricultural Investment in Ghana’, Journal of Political Economy, 116(6), pp. 981–1022. Available at: https://doi.org/10.1086/595561.
Morduch, J. (1999) ‘The Microfinance Promise’, Journal of Economic Literature, 37(4), pp. 1569–1614. Available at: https://doi.org/10.1257/jel.37.4.1569.
Besley, T., Coate, S. and Loury, G. (no date) ‘The Economics of Rotating Savings and Credit Associations’, The American economic review, 83(4), pp. 792–810. Available at: https://search-ebscohost-com.uniessexlib.idm.oclc.org/login.aspx?direct=true&db=bsu&AN=9401110155&site=ehost-live&authtype=sso&custid=s9814295.

The above list is indicative of the essential reading for the course.
The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students.
Further reading can be obtained from this module's reading list.

Assessment items, weightings and deadlines

Coursework / exam	Description	Coursework weighting
Coursework	Term paper	100%
Exam	Main exam: In-Person, Open Book, 120 minutes during Summer (Main Period)
Exam	Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period)

Exam format definitions

Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary, for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.

Your department will provide further guidance before your exams.

Overall assessment

Coursework	Exam
50%	50%

Reassessment

Coursework	Exam
50%	50%

Module supervisor and teaching staff

Supervisor: Dr Francesca Salvati, email: francesca.salvati@essex.ac.uk.

Teaching staff: Lectures: Dr Francesca Salvati

Contact details: For further information, send an email message to pgteco@essex.ac.uk.

Availability

Available to incoming Essex Abroad / Exchange students: Yes

Available to Outside Option: No

Available to Audit: No

External examiner

Name: Dr Domenico Moro

Institution: university of Birmingham

Academic role: Lecturer

Resources

Teaching materials: Available via Moodle

Lecture recording: Of 25 hours, 25 (100%) hours available to students:
0 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s), module, or event type.

Further information

Department website: Economics

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Module Directory

EC902-7-SP-CO:Economic Development Theory