COURSE CONTENTS REVIEW

Week 1: Principles and concepts of Development economics

1.1. Economic growth vs. development
1.2. Common characteristics of the developing countries
1.3. Differences of developing countries today and developed countries in the past
1.4. Compositions of Human Development Index, Milennium Development Goals
Week 2: Classic theories of economic growth and development
2.1. Rostow’s stages of growth and the Harrod-Domar model:
- Describing and explaining context; 5 stages; the role of physical capital
- The ICOR: as an indicator measuring investment efficiency
2.2. Lewis structural-change model
- Describing and explaining it in theory and drawbacks
2.3. Romer’s endogeneous growth theory:
- Emphasizing the roles of human capital and knowledge in economic growth
- Explaining the key features of increasing returns to scale of the human capital
(learning-by-doing) and technological spillover effects of the knowledge like
public goods (learning-by-watching).
Week 3: Contemporary models of development
3.1. Describe and explain the model of low-level equilibrium which may cause the
poverty trap for developing countries.
3.2. Describe and explain the Hausmann-Rodrik-Velasco growth diagnostics framework.
- Which aspects is most interesting to you?
Week 4: Income inequality and welfare
4.1. Lorenz Curve and GINI coefficient:
- Describing and explaining how it is measured,
- Its meanings, implications and shifting typologies.
4.3. Kuznet’s inverted-U hypothesis: empirical vs. theory
4.4. Policy options
- How the state can intervene to reduce inequality
Week 5: Population growth, urbanisation and human capital development
5.1. Major characteristics of the population growth in the world:
- Growing rates and size of the world population,
5.2. The Malthusian population trap: technology
5.3. Major characteristics of the urbanisation trends:
- Distribution and implications
5.4. Informal sector and Todaro’s migration model
- Implications of the urbanisation
5.5. Human capital
- Health and education as both inputs and outcomes of the development?
Relationships between them?
5.6. Child labour
- Different approaches to child labour
Week 6: Environment and technologies
6.1. Sustainable development: what it is defined and the environmental accounting
6.2. Environment economics: externalities vs. public goods
Week 7: Roles of the State in the economy
7.1. Roles of the State in the economy:
- Market failures: externalities vs. public goods
7.2. Business environment:
- WB’s Ease of Doing Business rankings