Development Economics

-Toward New Political Economy of Development-


.

開発経済学

-新しい開発の政治経済学を目指して-


For the happiness of loving and being loved ......

A Boy on the Sulaweshi Island of Indonesia

(Left: in Sulawesi, Indonesia; Right: in Floating Village, Cambodia)


(Children of immigrants: in villages in mountainous Bhutan)



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 2017-2018 Course Syllabus

 

(to be updated continuously during the semester)


(April 2017)

Last updated on April 14, 2017



Course Bulletin Board


Instructor: Prof. Shigeru Thomas OTSUBO (大坪 滋)

Lectures: Tuesdays 10:30 am. - 12 noon at GSID No.3 Lecture Hall

Office Hour: Tuesdays 1:30-2:30 pm. or by appointment at Room 704 (ext. 4966)

Teaching Assistant: Mr. Kee Wook MOON  (D2).  kwm9@naver.com

Classes are conducted in English.



Course Description


As the core discipline subject of the DID’s Economic Development Policy & Management (EDPM) Program,

this course "Development Economics (DE)" offers key principles and issues of Economics of Development bearing the needs of first-time learners in mind. Topics to be covered are: 1) the role of economic development in “development” and poverty reduction (Poverty-Growth-Inequality Triangle, SDGs); 2) the evolution of economic development thoughts; 3) the stylized facts in economic development (open and closed questions); 4) theories of development (traditional and new growth theories); 5) dualistic development and structural change (growth, poverty, and income distribution; rural-urban dichotomy); 6) financing development (capital and saving, financial system and development); 7) guiding development―markets vs. controls (the role of government in development, good governance); 8) development and institutions; and 9) new development challenges in the 21st century (globalization, international economic system, development and environment, and Sustainable Development Goals, etc.)

"Development Management uder Globalizatiopn (DMUG)," the sequel course to "Development Econmocs" offered in the second semester will handle international aspects of development economics. The DMUG covers selected topics such as: 1) economic development under the changing environment of globalization (risks and benefits associated with globalization, rise and demise of the East Asian growth model, Africa’s marginalization, convergence club under globalization); 2) international trade and development (inward- vs. outward-oriented development strategies and trade reforms, regionalism vs. multilateralism, WTO and industrial promotion); 3) external finance of development (ODA, FDI and multilateral corporations, portfolio flows, debt & financial crises); 4) managing open-economy development (BOP management, the order of liberalization, exchange rate regimes and monetary policy rules, fiscal sustainability, crisis management); 5) toward governance and quality of growth under globalization (growth and equity under globalization, localization under globalization); and 6) country case studies (with student presentations).

 

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Course Schedule: Themes and Issues

(For detailed class schedule & required readings, pay attention to the Course Bulletin Board on the web.)

April-May

1. Introduction to Development Economics

-- Stylized Facts & Evolving Principles in Economic Development

-- Open & Closed Questions, and Emerging Issues into the 21st Century

-- Measurements and Determinants of Poverty

-- Poverty-Growth-Inequality Triangle



1) the role of economic development in “development” and poverty reduction (in conjunction with I2ID sessions);

 

2) development economics in international development studies (in conjunction with I2ID sessions);

3) the evolution of economic development thoughts, with the causes of poverty;

4) the stylized facts in economic development (open, closed, and emerging questions);

 

5) determinants of growth (factors that define steady state);

6) developme
nt and equity-- the P-G-I triangle;

 

7) development with de-population/aging-population;


8) measurements and determinants of multifaceted poverty: absolute vs. relative, objective vs. subjective poverty
;

 

9) in search of a new development paradigm toward the post-MDGs era.

 


May-June

2. Learning Key Principles of Development Economics

-- Theoretical Arguments

1) representative theories of development (traditional and new growth theories);


2) dualistic development and structural change (rural-urban and/or agricultural-nonagricultural dichotomy and two-sector models, internal migration models)

 

June-July

3. Markets vs. Controls: Building Instituions for Development Coordination

1) guiding development―markets vs. controls (forces of the market, the role of government in development, good governance);

2) Washington Consensus, Post WC, and... ;


3) development, governace, and institutions (with proper understadning of time frameworks);

 

4) Provision of pure and impure public goods (EFA, environment protection, etc.)

Sessions of market experiments will be given for students to experience/understand market forces & differences between private and public goods.

July

4. Globalization and Development
New development challenges in the 21st century (globalization, international economic system, etc.).


1) Development with Globalization: Big Picture
2) Accumulated wisdom and empirical findings on the P-G-I Triangle under Globalization.

 

(Self Study)

 

5. Japanese/Asian Development Models

1) post-war development of the Japanese economy;

Students are required to go thourgh Prof. Otsublo's Powerpoiint Notes on Japan's Post-war development stories.

2) East Asian Miracle--Miracle or Myth?

 

(Self Study)

 

6. Socio-Economic Development Topics


1) sustainable development (the environment and development)
2) education, HRD, and development
3) social capital for development

Students are encouraged to read sections of their interests from the reading list. We will not have time to discuss these in the class.

 


 

 

Textbooks and Readers


All of the books listed here are available in Prof. Otsubo's corner in our GSID Library.
Chapters and sections to be read will be specified in the class as we go.



[Textbooks for Development Economics]

Main Textbook for Development EconomicsAddison Wesley
Michael P. Todaro, Stephen C. Smith, Economic Development, 11th edition (2011) Addison Wesley, OR 12thedition (2015), Pearson.
[To be referred as Economic Development or ED, henceforth.]

Sub Textbook for Development Economics
(In case you need to cross-check your understanding of basic ideas/facts/theories.)
D
wight H. Perkins, Steven Radelet, and David L. Lindauer, Economics of Development, 6th edition (2006) OR 7th edition (2013), W.W. Norton & Company.
[To be referred as Economics of Development or EOD, henceforth.]

 

Main Textbook for International Development Studies
Shigeru Otsubo, Hirotsune Kimura, and Sanae Ito, Introduction to International Development Studies, Keiso-Shobo, 2009.
[This book was publised in Japanese. However, Introduction, Part I and the Conclusion have been translated for you to read. ]
To download English versions, visit Introduction to International Development (I2ID) Book HP
(Password to open PDF files will be given in the first lecture of I2ID, and of Development Economics.)
Forward,
Introduction,
Views from Development Economics,
Views from Development Polictics
Views from Development Socioloty
Building Interdisciplinary Development Studies


Main Textbook for Globalization and Development (Development Management under Globalization)
Shigeru Otsubo, ed., Globalization and Development, Routledge, 2015.
Volume I: Leading issues in development with globalization

Volume II: Country experiences
Volume III: In search of a new development paradigm

[These books will be published in July-September 2015. I will provide a couple of chapters in PDF formats so that you can read these pieces ahead of publication. ]
To download password-protected pre-release versions, visit Course Bulletin Board.
(Password to open PDF files will be given in the first lecture of Development Economics.)
Chapter 1: Leadig Issues in Development with Globalization,
Chapter 30: In Search of a New Development Paradigm

For those who can read Japanese books
[You should read the following two books.]

大坪滋,木村宏恒, 伊東早苗(共編著) 『国際開発学入門--開発学の学際的構築 (Introduction to International Development Studies)』
東京:勁草書房, 2009. 本書の紹介 (Introduction)

大坪滋(著・編著) 『グローバリゼーションと開発 (Leading Issues in Development with Globalization)』 
東京:勁草書房, 2009. 本書の紹介 (Introduction)



[Readers] (Selections will be specified in the lecture OR on the course BB.)

Joseph Stiglitz and Gerald Meier, Frontiers of Development Economics: The Future in Perspective, Oxford U. Press, 2000.
[An evolution of development thinking, economists' version, at the turn of the century.]

Gerald M. Meier, Leading Issues in Economic Development, 6th ed., Oxford U. Press, 1995
(松永宣明、大坪滋 「国際経済開発入門」 剄草書房、1999年9月 [Japanese Translation, 上記の編訳] )
[This book always enrich your visions of development issues in a well-balanced manner.]

Gerald M. Meier and James E. Rauch, Leading Issues in Economic Development, 8th ed., Oxford U. Press, 2005
[Newer breed of the above.]

Robert J. Barro, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, 1997.
[A good quantitative summary of stylized facts of (economic) development.]

William Easterly, The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics, MIT Press, 2001.
[Before blaming economists for persistent poverty problems, analyze the misadventures. Hints on how to properly apply economic principles/modern growth theories on the ground.]

World Bank (Vinod Thomas ed.), The Quality of Growth, Oxford U. Press, 2000.
(世界銀行(著)、小浜裕久等(訳) 「経済成長の質」 東洋経済新報社、2002年 [Japanese Translation, 上記の編訳] )
[Stressing the role of good governance (sound development management) for the quality of growth.]

Amartya Sen, Development as Freedom, Anchor Books, 2000.
[This book extends the meaning of poverty and humnan development. A good eye-opener for concerned economists.]

James D. Wolfensohn (Foreword), Rodrigo de Rato (Foreword), Global Monitoring Report 2004: Policies and Actions for Achieving the Millennium Development Goals and Related Outcomes, World Bank Publications, 2004.

Jeffrey D. Sachs (Editor), Investing In Development: A Practical Plan To Achieve The Millennium Development Goals (UN Millennium Project), 2005.
[A good review of our development efforts and what should be done to achieve the MDGs.]

World Bank, World Development Report 2000Entering the 21st Century, 2000.
[A good summary of economic integration and global issues into the 21st century.]

World Bank, World Development Report 2000/2001Attacking Poverty, 2001.
[Every 10 years, the WB reviews the results of our fight against poverty and rethink future strageties for poverty reduction.]

World Bank, World Development Report 2006Equity and Development, 2005.
[Is growth good for poverty reduction? WDR revists the issues of Equity and Development with lots of background fact-finding analyses.]

World Bank, Globalization, Growth, and Poverty: Builidng an Inclusive World Economy, Oxford U. Press, 2002.
[An introductory analysis and fact book on the possible relationship between globalization and poverty reduction.]

Giovanni Andrea Cornia (Editor), Inequality, Growth, and Poverty in an Era of Liberalization and Globalization, Oxford Univ. Press, 2004.
[Development under globalization tends to enlarge gaps between rich and poor both internationally and domestically. What sort of development management is neccessary?]

Claude Menard (Editor), Mary M. Shirley (Editor), Handbook of New Institutional Economics, Springer, 2004.
[Lean about the essense of and new developments in New Institutional Economics.]

World Bank, The East Asian Miracle: Economic Growth and Public Policy, Oxford U. Press, 1993.
[The book that you cannot go without when looking into "the" Asian growth model.]

Joseph Stiglitz and Shahid Yusuf, Rethinking the East Asian Miracle, Oxford U. Press, 2001.
[What was the real essence of the Asian Miracle? Where are we going?]



[Resources on the Internet]

Refer to the "Exploration of Economics/Intn’l Development Resources" corner of Prof. Otsubo's Homepage for resources on the internet to be used in this course.

To Start With ...
1 世界がもし100人の村だったら
If the World were a Village of 100 People
Well, where can we, economists, contirubute?
Poverty-MDGs
2 World Bank: PovertyNet
Explore the resouces on poverty alleviation.
Links to MDGs-related sites are also available.
3 Humand Development Report 「人間開発報告」
Check out the cocepts and measurements of human development.
How dose economic development affect HDIs directly and/or indirectly?


HDI Animations
Do not miss the HDI-Income Growth animation!
This site also has a nice animation for the MDG progress.
4 Sustainable Development Goals (SDGs)

Explore this UN window site for SDGs.



UNDP SDG Site
Explore this UNDP window site for SDGs.

WB SDG Site--Financing Post-2015 Agenda
Explore this WB window site for SDGs.
5 World Development Reports

WDR 2000/2001: Attacking Poverty
Overview -- Attacking Poverty: Opportunity, Empowerment, and Security
Chapter 1 -- The Nature and Evolution of Poverty)
Backgournd Paper 'The Evolution of Thinking about Poverty: Exploring the Interactions'
Japan's ODA
6 Japan's ODA Homepage (Japanese)
Japan's ODA Homepate (English)
What are the recent developments and directions of Japan's ODA activities?
7 Japan's ODA Charter 2003 Revision (Japanese)
Japan's ODA Charter 2003 Revision (English)
Locate keywords in this draft.
Governance-Institutions
8 World Bank Institute Thematic Site: Governance

Check WB resources on the issue of governance.

9 The IMF and Good Governance

Check IMF resources on the issue of governance.

10 UNDP on Democratic Governance

Check UNDP resources on the issue of governance.

11 World Bank Thematic Site: Governance and Public Sector Reform

Check WB resources on the issue of public sector management.

12 Debating the Washington Consensus
(June 19, 2003)

Suzan George + delegates from DAC, WB, etc.

13 Whither Reform? - Ten Years of the Transition -- "More Instruments and Broader Goals: Moving Toward the Post-Washington Consensus" by Joseph Stiglitz (1999)

Critical review of the so-called Washington Consensus.

14 "The Rise and Fall of the Washington Consensus" by Charles Gore (2000)

A critical review of the WC (WB/IMF) by an UNCTAD staff.

Japan's and Asia's Development Experiences
15 Shigeru Otsubo and Akira Furukawa
Post-war Development of the Japanese Economy---Development, Japanese/Asian Style---

A Power Point note for you to learn about Japan's post-war development experience.

16 IDE-JETRO Resources on Japanese Development Experience
Digital Archives on "The Japanese Experience: Techonology Transfer, Transformation, and Development"

A Digital Liblary created as a byproduct of their Japanese Experience Project.

Globalization-Trade & Financial Integration
17 Assessing World Bank Support for Trade 1987-2004: An IEG Evaluation

The World Bank was overly optimistic about the immediate and universal benefits of more open trade. This critical independent evaluation report confirms that liberalizaing trade alone is not enough to generate grwoth and fight poverty.

18 World Trade Organization

Check recent developments in world trading system.
New round of negotiations? China's membership? .....
Visit 'WTO News' and 'Trade Topics' corners.

19 The Doha Agenda for WTO Negotiations

Check through the negotiation agenda of the 'Development' Round.

20 GATT & WTO Agreements

See the structure of the GATT/WTO agreements.

21 World Bank Thematic Site: Globalization

Check WB resources on the issue of globalization.

22 World Bank Thematic Site: Trade

Check WB resources on the issue of trade.

23

Global Macroeconomic and Financial Policy Site
by Prof. Nouriel Roubini, Stern School of Business, New York Univ.

On-Line Tutor of Development Economics, and Virtural Case Studies
24 OnLine Tutor in Development Economics

This fantastic site provides you an on-line tutorship for you to go though basic issues, conceps, and theories in Development Economics.

25 Economic Theories in a Virtual Development Country (Zambia)
(currently not available)

Virtural case studies of economic theories in the contect of a developing country.


These last two entries, OnLine Tutor in Development Economics and
Economic Theories in a Virtual Development Country (Zambia)
are excellent resources for you.
(Unfortunately not available currently in 2013.)



[Reference Books for Macro and Microeconomics (for students without economics background)]

Refer to Prof. Umemura's reading list for 'Development Macroeconomics' lectures for Macroeconomics.

Refer to Prof. Shinkai's reading list for 'Development Microeconomics' lectures for Microeconomics.


[Reference Books for International Economics i.e. International Trade and International Finance]

Richard E. Caves, Jeffrey A. Frankel, and Ronald W. Jones, World Trade and Payments: An Introduction, 10th ed., Addison-Wesley Pub. Co., 2006. (or any newer editions)
[Textbook for International Trade and Finance]

Paul R. Krugman, Maurice Obstfeld, International Economics: Theory And Policy , 7th. ed., Addison-Wesley Pub. Co., 2005. (or any newer editions)


[To Aquire a Good Sense of Economics]

Also, read the following book by a 1992 Nobel Prize winner and his wife in order to train your economic thinking. This book is a collection of their essays publised in BusinessWeek , providing a bridge between economic theories and real life issues.
Gary S. Becker and G. N. Becker, The Economics of Life: From baseball to affirmative action to immigration, how real-world issues affect our everyday life, McGraw-Hill, 1996
(Japanese Translation - 邦訳)「ベッカー教授の 経済学ではこう考える」 東洋経済新報社、1998

Course participants are encouraged to associate themselves with Adam Smith, The Wealth of Nations , at the earliest possible occasion.



The following list of required and recommended readings will be continuously updated as we go. Thus, reading assignments will also be announced in the class and on our course bulletin board.


Readings and References

This list of required & recommended readings will be modified as we go. Please check this section regularly. Also pay attention to the Course Bulletin Board on the web.

Items with mark can be found in the Prof. Otsubo’s Course-Book Section (Restricted Circulation) in the GSID Library.
An Entire List of Books for Restricted Circulation

Items with ** mark are required readings.

Items with * mark are highly recommended readings.

Items with (A) mark are for more advanced leaners.

 


Development Economics in International Development Studies

**大坪滋,木村宏恒, 伊東早苗(共編著) 『国際開発学入門--開発学の学際的構築 (Introduction to International Development Studies)』 東京:勁草書房, 2009. 本書の紹介 (Introduction)
[**Shigeru Otsubo, Hirotsune Kimura, and Sanae Ito, Introduction to International Development Studies, Keiso-Shobo, 2009.]

This book was publised in Japanese. However, the Part I of the book will be translated for you to read.
To download English versions, visit Introduction to International Development (I2ID) Book HP


(Password to open PDF files will be given in April 13 lecture of I2ID, and in the first lecture of Development Economics.)

Forward,
**Introduction,
**Views from Development Economics,
Views from Development Polictics
Views from Development Socioloty
Building Interdisciplinary Development Studies

 

**Shigeru Otsubo, ed., Globalization and Development, Routledge, 2015.
Volume III: In search of a new development paradigm
(Password to open PDF files will be given in the first lecture of Development Economics.)
**Chapter 30: In Search of a New Development Paradigm

 


Poverty: How do you define it? How do you measure it?

**Teguh Dartanto and Shigeru O tsubo, "Measurements and Determinants of Multifaceted Poverty: Absolute, Relative, and Subjective Poverty in Indonesia," Working Paper No. 54, JICA Research Institute (2013).

[Introduction in English & Downloadable PDF File].....[Introduction in Japanese & Downloadable PDF File]

**Teguh Dartanto and Shigeru O tsubo, "Intrageneration Poverty Dynamics in Indonesia: Households' Welfare Mobility Before, During, and After the Asian Financial Crisis," Working Paper No. 117, JICA Research Institute (March, 2016).

[Introduction in English & Downloadable PDF File].....[Introduction in Japanese & Downloadable PDF File]



Stylized Facts & Evolving Principles in Economic Development

**Prof. Otsubo's PowerPoint Presentations & Handouts:
1) The Evolution of Development Thought: An Economist's Overview,
2) Revolutions and the Evolution of Economic Systems.
3) Poverty-Growth-Inequality Triangle
4) Development with De-Population/Aging Population


Evolution of a Development Paradigm and Economic Development (Newly Integrated Handouts)(Slides)

Evolution of a Development Paradigm and Economic Development (Newly Integrated Handouts)(2-in-1 Handouts)

Evolution of Development Thought
Evolution of Development Thought (Summary)

Evolution of Socio-Economic System (Summary)

Evolution of a Development Paradigm (Simplified)

Eternal Triangle of Poverty-Growth-Inequality

Development with De-Population / Aging Population

**Economic Development, 12th (or 11th) ed., Chapters 1(**), 2 (**) and 5 (**).
plus
*
Economics of Development, 6th OR 7th ed., Chapter 1(*).
[EOD Ch.1 would be a wonderful addition to the readings from ED for those who study Economics of Development for the first time.]

**Frontiers of Development Economics:
Read (**)“Introduction: Ideas for Development”and (**)"The Old Generation of Development Economists and the New" by Gerald M. Meier,
(**)“Development Issues: Settled and Open” by Shahid Yusuf and Joseph E. Stiglitz,
and (*)"The Evolution of Thinking about Poverty: Exploring the Interactions" by Ravi Kanbur and Lyn Squire (this section can be downloaded).
["The Old Generation of Development Economists and the New" will be presented/explained in the class using PP presentation files.]
["The Evolution of Thinking about Poverty" is refected in Chapter 1 of WDR 2000/2001-Attacking Poverty.]

**World Bank, World Development Report 2000/2001―Attacking Poverty.
Read Chapters 1-3.

**World Bank, World Development Report 2006―Equity and Development.
Read Overview, Chapter 1: Introduction and Chapter 4: Equity and well-being.

**Development as Freedom.
Read “Introduction: Development as Freedom", Chapter 1: The Perspective of Freedom, and Chapter 4: Poverty as Capability Deprivation.

*The Elusive Quest for Growth.
Read Part I: Why Growth Matters, Chapter 1: To Help the Poor.

*(**)Aart Kraay and David Dollar, "Growth is good for the poor," Policy Research Working Paper No. 2587, The World Bank (2001).
[PDF file is here.] This paper is (**) for EDP&M major.

*W.A. Lewis, "Is Economic Grwoth Desirable?," Appendix to The Theory of Economic Grwoth, Irwin, 1955.

*Leading Issues in Economic Development, 8th ed., Chapters I.A, I.B, II., and Chapter VIII.
OR
*Leading Issues in Economic Development, 6th ed., Chapters I and II.A.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]

*World Bank (Vinod Thomas ed.), The Quality of Growth, Oxford University Press, 2000.
Read Overview and Chapter 1 for now.

*Robert J. Barro, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, 1997.
[To be discussed in the class.]

*(**)Albert O. Hirshman, "The Rise and Decline of Development Economics," Chapter 1 in Essays in Trespassing: Economics to Politics and Beyond (1981).
This paper is (**) for EDP&M major.

For those who can read Japanese documents:
**Shigeru Otsubo, "The Eternal Traiangle of Growth, Inequality, and Poverty Reduction," Forum of International Development Studies, No. 36 (March 2008), pp. 21-44. [DP version}

Explore No.1 through No.5 of the designated site by mid-May.
Also vist No.24 (on-line tutor) and No.25 (virutal case study) of the designated site as we go in order for you to navigate and summarize issues that we deal with, and to see the relevance of them on the ground.




******************* P-G-I Triangle under Globalization (2nd Semester 'Development Management under Globalization" )*******************************************************

Poverty-Growth-Inequality under Globalization: Incl. Empirical Stocktaking

**Shigeru Otsubo, ed., Globalization and Development, Routledge, 2015.
Volume I: Leading issues in development with globalization

(Password to open PDF files will be given in the first lecture of Development Economics.)
**Chapter 1: Leadig Issues in Development with Globalization

 

**Yumeka Hirano and Shigeru Otsubo, "Poverty-Growth-Inequality under Globalization: Time Dimensions and Control Factors of the Impacts of Integration," GSID Discussion Paper No.191, GSID, Nagoya University (October 2012).

[Dowload a PDF file from the GSID HP]

**Yumeka Hirano and Shigeru Otsubo, "Aid Is Good for the Poor: Development aid in a globalized world," World Bank Policy Research Working Papers, WPS No. , The World Bank (August 2014).

[Dowload a PDF file from the GSID HP]

*****************************************************************************************************************************************************************



Economic Growth Models and Theories: Growth Theories, Income Convergence?, Determinants of Growth, and Agriculture vs. Industry (Rural vs. Urban Sectors)

**Economic Development, 12th (or 11th) ed., Chapters 3(**) and 4(*).

**Economic Development, 12th (or 11th) ed., Chapter 7.
'Migration and Development' (**) and 'Toward an Economic Therory of Rural-Urban Migration' (**)) for the Migration Model. (*) for other sections.

**Robert J. Barro, Determinants of Economic Growth: A Cross-Country Empirical Study, MIT Press, 1997.
Read Chapter 1: Economic Growth and Convergence. [To be discussed in the class.]

*Frontiers of Development Economics.
Read “Fallacies in Development Theory and Their Implications for Policy" by Irma Adelman, and (A) "ModernEconomic Theory of Development" by Karla Hoff and J.E. Stiglitz.

*The Elusive Quest for Growth.
Read Part II: Panaceas That Failed, Chapter 3: Solow's Surprize: Investment Is Not the Key to Growth.

*World Bank, World Development Report 2000―Entering the 21st Century.
Read Overview, Introduction, and Chapter 1 for now.

**Leading Issues in Economic Development, 8th ed., Chapter I.C.
OR
**Leading Issues in Economic Development, 6th ed., Chapters II.B, II.C, and III.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]




***************************************************************************************************
Interested readers should also explore the papers and books cited in these sections of Leading Issues (6th and 7th eds.). Items by Arrow,
Bhagwati, Chenery, Hirshman, Lewis, Romer, Rostow, Schults, Singer, Solow, Stiglitz are highly recommended.
The following entries-original works on development theories-are (*) items for studens in EDP&M program.
***************************************************************************************************

Xeroxed copies of most of the articles in this subsection are available in the GSID Library (reserved box).

*Jagdish Bhagwati, "Development Economics: What Have We Learned?" Asian Development Review, Vol.2, No. 1 (1984), pp. 24-29.
[As a starter and as an introduction to import-substituting development strategy.]

*Albert O. Hirschman, "Political Economy of Import Substituting Industrialization," Quarterly Journal of Economics (February 1968).
[On the policital economy of import substitution.]

*David Ricardo, "On Foreign Trade," Chapter 7 in On the Principles of Pollitical Economy and Tazation (1817).
[Download and read this theory of 'Comparative Advantage.']

*W.W. Rostow, "The takeoff into Self-Sustained Grwoth," in Agarwala and Singh, The Economics of Underdevelopment, Oxford Univ. Press, 1963, pp. 154-186.
[On 'Stages-of-Development' theory and 'take-off.']

*W.A. Lewis, "Economic Development with Unlimited Supplies of Labor," Manchester School (May 1954).
Reprinted in Agarwala and Singh, The Economics of Underdevelopment, Oxford Univ. Press, 1963, pp. 400-435.

*P.N. Rosenstein-Roden, "Problems of Industrialization of Eastern and Southeastern Europe," Economic Journal (June-September 1943).
[On 'Big Push.']

*Kevin M. Murphy; Andrei Shleifer, and Rovert W. Vishny, "Industrialization and the Big Push," The Journal of Political Economy (October 1989).
[On 'Big Push.']

*Harvey Leibenstein, Economic Backwardness and Economic Growth (1957), Chapter 8.
[On 'Critical Minimum Effort.']

*Richard R. Nelson, "A Theory of the Low-Level Equilibrium Trap in Underdeveloped Economies," American Economic Review (December 1956), pp. 894-908.
[On 'Low Level Equilibrium Trap.']

*Ragnar Nurkse, Problems of Capital Formation in Underdeveloped Countries (1953), pp.13-15.
[On 'Balanced Growth.']

*Albert O. Hirschman, The Strategy of Economic Development (1958).
[On 'Unbalanced Growth.']

*Gunnar Myrdal, Economic Theory and Underdeveloped Regions (1957).
*Raul Prebisch, "The Ecobomic Development of Latin America and Its Principal Problems," Economic Bulletin for Latin America ,7 (1950).
*Hans Singer, "Gains and Losses from Trade and Investment in Underdeveloped Countries," American Economic Review (May 1950).
[On the 'Export Pessimism.' that led to the 'Dependency Theory.']

On top of the secion II.C: Alternative Perspectives, II.D.1. Dependency Therories of Underdevelopment inLeading Issues in Economic Development, 6th ed.
*Osvaldo Sunkel, "National Development Policy and External Dependence in Latin America," Journal of Development Studies (October 1969): 31.
*Osvaldo Sunkel, "Transnational Capitalism and National Disintegration in Latin America," Social and Economic Studies (March 1973), pp. 132-76.
*Samir Amin, "Underdevelopment and Dependency, " Journal of Modern African Studies, Vol. 10 (1972).
*Enmer L. Bacha, "An Interpretation of Unequal Exchange from Prebish-Singer to Emmanuel, " Journal of Development Economics, Vol. 5 (1978).
[On 'Dependency Theories.']
*Sanjaya Lall, "Is 'Dependence' a Useful Concept in Analyzing Underdevelopment?" World Development (November-December 1975).
[On citical review of the 'Dependency Theories.']

*World Bank, Redistribution with Growth (1974).
[Stop waiting for the 'Trickle Down' to happen.]

*International Labor Organization, The Basic Needs Approach to Development (1977).
[On the 'BHN' approach.]

*T.W. Schultz, "Investment in Human Capital," American Economic Review (March 1961), pp. 1-17.
[From physical capital to 'Human Capital.']

*Frances Stewart, Technology and Underdevelopment (1977).
[On the proper 'Technology' to borrow.]

*Paul M. Romer, "Increasing Returns and Long-run Growth," Journal of Political Economy , Vol. 94 (October 1986), pp.1002-37.
[On the 'AK approach' to the New Endogenous Growth Model.]

*Paul M. Romer, "Endogenous Technological Change," Journal of Political Economy, Vol. 98 (October 1990), pp.71-102.
[On the 'neo-Schumpeterian pproach' to the New Endogenous Growth Model.]


*Albert O. Hirshman, "The Rise and Decline of Development Economics," Chapter 1 in Essays in Trespassing: Economics to Politics and Beyond (1981).
[Development Economics was to be dominated by the Economics of Developed?]

*Ann O. Krueger, "Aid in the Development Process," World Bank Research Observer (January 1986), pp. 62-63.
[On the resergence of Neoclassical Economics.]

*Amartya K. Sen, "Development Which Way Now?" Economic Journal (December 1983).
*W. Arthur Lewis, "The State of Development Theory, " American Economic Review (March 1984).
[On the continuing role of Development Economics.]

On top of the secions II.B.2: Neoclassical Analysis, II.B.3: Structural Analysis inLeading Issues in Economic Development, 6th ed.
*Robert M. Solow, "A Contribution to the Theory of Economic Growth," Quarterly Journal of Economics (February 1956).
[On the neoclassical 'Solow Growth Model.']

*Prnab Bardhan, "The New Institutional Economics and Development Theory," World Development, Vol. 17, No. 9 (1989), pp. 1390-1394.
[Reprinted as secion II.B.6: The New Institutional Economics and Development Theory in
Leading Issues in Economic Development, 6th ed.]

On top of the secion II.B.5: New Endogenous Growth Theory inLeading Issues in Economic Development, 6th ed.
*Kenneth Arrow, "The Economic Implications of Leaning by Doing," Review of Economic Studies (June 1962), pp.155-73.
[On a dynamic interpretation of increasing returns.]

*Paul M. Romer, "Increasing Returns and Long-run Growth," Journal of Political Economy , Vol. 94 (October 1986), pp.1002-37.
[On the 'AK approach' to the New Endogenous Growth Model.]

*Paul M. Romer, "Endogenous Technological Change," Journal of Political Economy, Vol. 98 (October 1990), pp.71-102.
[On the 'neo-Schumpeterian pproach' to the New Endogenous Growth Model.]

(A) Robert J. Barro and Xavier Sala-i-Martin, Economic Growth, McGraw-Hill, 1995.

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Students in Rural/Regional Development Development Program should also read the following entries,
even if we may not cover these topics in the lecture.

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**Economic Development, 12th (or 11th) ed., Chapter9: Agricultural Transformation and Rural Development.
AND
*
Economics of Development, 6th ed., Chapter 16: Agriculture and Chapter 17: Primary Exports.nt.
AND/OR
*
Economics of Development, 7th ed., Chapter 16: Agriculture and Development, and Chapter 17: Agriculturral Development: Technology, Policies, and Institutions.

*Leading Issues in Economic Development, 8th ed., Chapters VI and VII.

*W.A. Lewis, "Economic Development with Unlimited Supplies of Labor," Manchester School (May 1954).
Reprinted in Agarwala and Singh, The Economics of Underdevelopment, Oxford Univ. Press, 1963, pp. 400-435.



Updated and confirmed up to this section for Part I and Part II of the course. (May 26, 2015)




Market Experiments: The Feel of Market Forces & The Roles of Governments

**Prof. Otsubo's Materials for Market Experiments (to be distributed in the class).

**Joseph E. Stiglitz, Principles of Micro-Econonmics, 2nd ed., W.W. Norton & Co., 1997 (Or any other edition).
Read Chapter 7: The Public Sector, (This short chapter will be distributed in the class.)

*Joseph E. Stiglitz, Economics of the Public Sector, 3rd ed., W.W. Norton & Co., 2000.
Read Chapter 1: The Public Sector in a Mixed Economy, and
Skim through Chapter 2: The Public Sector in the United States .
Read Chapter 3: Market Efficiency, Chapter 4: Market Failures, and Chapter 6: Public Goods.

For those who are interested in Experimental Economics:
(A)Daniel Friedman and Shyam Sunder, Experimental Methods: A Primer for Economists, Cambridge University Press, 1994.
(A)川越、内木、森、秋永 訳、「実験経済学の原理と方法」、同文館、1999)




Market vs. Government Control in Economic Development: Building Instituions for Development Coordination

**Economic Development, 12th (or 11th) ed.,
Chapter 11: Development Policymaking and the Roles of Market, State, and Civil Society.

OR

**Economics of Development, 7th (or 6th) ed.,
Chapter 5: States and Markets.

**Development as Freedom
Read Chapter 5: Markets, State and Social Opportunity.

*Yoichiro Ishihara, "Economic Governance and Economic Performacne in Developing Countrires," Forum of International Development Studies, Vol. 19 (Oct, 2001)
Excertpts will be distuributed in the class.
Download and read the full paper!

*Leading Issues in Economic Development, 8th ed., Chapter IX.
OR
*Leading Issues in Economic Development, 6th ed.
Read Chapters X: Markets, Government, and Policy, VII.B: Promoting Industrialization, and VII.D: Privatization.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]

*World Bank, World Development Report 2002Builidng Instituions for Markets, 2002.




East Asian Growth Model--Miracle or Myth?----Japan's & Asia's Development Experiecnes--Beyond the Asian Financial Crisis

**Shigeru Otsubo and Akira Furukawa, Post-war Development of the Japanese Economy---Development, Japanese/Asian Styoe---, PowerPointNote, 2007.

**World Bank, The East Asian Miracle: Economic Growth and Public Policy, Oxford U. Press, 1993.

Alwyn Young, "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Experience," NBER Working Paper, No. 4680 (1994).

**Paul Krugman, "The Myth of Asia's Miracle," Foreign Affairs, Vol. 73, No. 6 (November/December 1994).

Jong-Il Kim and Lawrence J. Lau, "The Role of Human Capital in the Economic Growth of the East Asian Newly Industrialized Countries," Asia-Pacific Economic Review, Vol. 1, No. 3 (December 1995).

**Michael Walton, "The Maturation of the East Asian Miracle," Finance & Development (September 1997).

Joseph Stiglitz and Shahid Yusuf eds., Rethinking the East Asian Miracle, WB-Oxford University Press, 2001.



Sustainable Development (For those students interested in the issues of "Development and Environment.")

**Economic Development, 12th (or 11th) ed., Chapter 10: The Environment and Development.
OR
*
Economics of Development, 7th (or 6th) ed., Chapter 20: Sustainable Development.

**World Bank, World Development Report 2000―Entering the 21st Century,
Chapter 4: Protecting the Global Commons.

*Leading Issues in Economic Development, 8th ed., Chapter X.



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Students in Educational/Human Resource Development Program should go for the following entries.

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Education and Development (For those students interested in the issues of "Education and Development.")

**Economic Development, 12th (or 11th) ed., Chapter 8: Human Capital: Education and Health in Economic Development.
Read sections related to Education and Development.

OR
*
Economics of Development, 7th (or 6th) ed.,, Chapter 8: Education.

**The Elusive Quest for Growth.
Read Part II: Panaceas That Failed, Chapter 4: Educated for What?

**大塚啓二郎、黒崎卓 (共編)、「教育と経済発展-- 途上国に於ける貧困削減に向けて --」、東洋経済新報社、2003.
[(**)Chapters 1-4 explains relationships between Education Development and Economic Development. (*)Other chapters provide microeconometric case studies of the impacts of education on poverty reduction. (***) for those who wish to conduct statistical/econometric analyses in writing MA/Ph.D. theses in the area of Education/HR Developmet.]

**小川啓一、野村真作、「教育統計学 基礎編-- 「万人のための教育」に向けた理論と実践的ツール --」、学文社、2009.
[For more entry/primitive levels of statistical analyses. Good to be used as a pair with the previous entry.]

**Leading Issues in Economic Development, 8th ed., Chapter IV.A.: Education.
OR
*Leading Issues in Economic Development, 6th ed., Chapter VI.F: Education.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]

*G.S. Becker, Human Capital, Cambridge University Press, 1964.
佐野陽子訳 「人的資本論」 東洋経済新報社 1976. 

**T.W. Schultz, "Investment in Human Capital," American Economic Review (March 1961), pp. 1-17.
[From physical capital to 'Human Capital.']

**Galor, Oded and J. Zeira, "Income Distribution and Macroeconomics," Review of Economic Studies, Vol. 60 (1993), pp. 35-52.
[What does the indivisibility of education/HR investment mean in chronic poverty?]

*T.W. Shultz, "The economic value of education", The Economic Value of Education, Columbia University Press, 1963.
清水義弘・金子元久訳 「教育の経済価値」 日本経済新聞社 1981. 

L. Thurow, Generating Inequality, Basic Books, 1976.

(A) G.A. Akerlof and R. Kranton, "Identity and schooling: some lessons for the economics of education", Journal of Economic Literature, Vol.40, No.4, pp. 1167-1201 (2002).

(A) D. Card, "The causal effect on education on earnings", in Handbook of Labor Economics, Vol. 3B, edited by O. Ashenfelter and R. Layard, Elsevier Science Publishers B.V., pp. 1801-1863.

(A) E.P. Lazear, "Educational production", Quarterly Journal of Economics, Vol.116, No.3, pp. 777-803 (2001).



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International Aspects of Economic Development will be mainly dealt in the 2nd Semester in
"Development Management under Globalization" as a sequal to this course (Development Economics).

In this Development Economics Lecture, I will try to provide introduction/linkages to the subjects of
International Development Economics.

Students in Development Economics are supposed to download and read the following Hirano/Otsubo stocktaking paper on the impacts of Globalization.



Poverty-Growth-Inequality under Globalization
: Empirical Stocktaking

***Yumeka Hirano and Shigeru Otsubo, "Poverty-Growth-Inequality under Globalization: Time Dimensions and Control Factors of the Impacts of Integration," GSID Discussion Paper No.191, GSID, Nagoya University (October 2012).

[Dowload a PDF file from the GSID HP]

***Yumeka Hirano and Shigeru Otsubo, "Aid Is Good for the Poor: Development aid in a globalized world," World Bank Policy Research Working Papers, WPS No. , The World Bank (August 2014).

[Dowload a PDF file from the World Bank HP]

 

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Globalization and Development Books Edited by Prof. Otsubo

http://www.routledgementalhealth.com/books/search/author/shigeru_otsubo/

**Shigeru Otusbo, ed., Globalization and Development Volue I: Leading issues in development with globalization, Routledge, 2015.

**Shigeru Otusbo, ed., Globalization and Development Volue II: Country ecperiences, Routledge, 2015.

**Shigeru Otusbo, ed., Globalization and Development Volue III: In search of a new development paradigm, Routledge, 2015.

 

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International Development Economics: Introduction to "Development Management under Globalization (2nd Semester)"

大坪滋(著・編著) 『グローバリゼーションと開発 (Leading Issues in Development with Globalization)』 
東京:勁草書房, 2009. 本書の紹介 (Introduction)

**World Bank, World Development Report 2000―Entering the 21st Century,
Introduction: New Directions in Development Thinking,
Chapter 1: The Changing World.

Trade Integration--Trade and Development--GATT/WTO:

**Economic Development, 12th (or 11th) ed., Chapter 12: Intgernational Trade Theory and Development Strategy

**World Bank, World Development Report 2000―Entering the 21st Century,
Chapter 2: The Wolrd Trading System: The Road Ahead.

*(**)David Dollar and Aart Kraay, "Trade, Growth, and Poverty," Policy Research Working Paper No. 2615, The World Bank (2001).
[PDF file is here.] This paper is (**) for EDP&M major.

**Assessing World Bank Support for Trade 1987-2004: An IEG Evaluation
The World Bank was overly optimistic about the immediate and universal benefits of more open trade. This critical independent evaluation report confirms that liberalizaing trade alone is not enough to generate growth and fight poverty.

Leading Issues in Economic Development, 8th ed., Chapter III..A
OR
Leading Issues in Economic Development, 6th ed., Chapters VII.B and IX.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]

Financial Integration--External Finance and Development (FDI and MNCs, Other Capital Flows):

**Economic Development, 12th (or 11th) ed., Chapters 13 and 14
Chapter 13: Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization Controversy.
Chapter 14:Foreign Finance, Investment, and Aid: Controversies and Opportunities

**World Bank, World Development Report 2000―Entering the 21st Century,
Chapter 3: Developing Countries and the Global Financial System.

*Leading Issues in Economic Development, 8th ed., Chapters III.B and V
OR
*Leading Issues in Economic Development, 6th ed., Chapters IV and V.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]




Stabilization and Structural Adjustments--IMF and the World Bank:

**Economic Development,12th (or 11th) ed.,
12th (or 11th) ed., Chapter 13: Balance of Payments, Debt, Financial Crises, and Stabilization Policies
OR
**
Economics of Development, 7th (or 6th) ed.,,
6th ed., Chapters (10, 12,) 15 and 21.

7th ed., Chapters (10 ,11,) 13 and 15.

Leading Issues in Economic Development, 6th ed., Chapters VII.A,C,D.
[For the 6th ed., Japanese Version is available as 「国際開発経済学入門」]

*Michael Bruno, Deep Crises and Reform: What Have We Learned?, The World Bank, 1996.

Development Management under Globalization: Globalization, Governance and the Nation State

大坪滋(著・編著) 『グローバリゼーションと開発 (Leading Issues in Development with Globalization)』 
東京:勁草書房, 2009. 本書の紹介 (Introduction)

*Economic Development, 10th ed., Chapter 16

*Globalization in Question: The International Economy and the Possibilities of Governance, 2nd rev. ed., Chapters 7 and 9.

World Bank (Vinod Thomas ed.), The Quality of Growth, Oxford University Press, 2000, Chapters 6 and 7.

Robin Cohen and Paul Kennedy, Global Sociology, New York University Press, 2000.
Chapters 1, 2, 5, 11, 14 and 20.

Globalization and Inequality--Poverty Reduction

大坪滋(著・編著) 『グローバリゼーションと開発 (Leading Issues in Development with Globalization)』 
東京:勁草書房, 2009. 本書の紹介 (Introduction)

*Economics of Development, 7th (or 6th) ed.,, Chapter 6: Inequality and Poverty

**World Bank, World Development Report 2006―Equity and Development.
Read Chapter 3: Equity from a global perspective, Chapter 9: Markets and the macroeconomy, and Chapter 10: Achieving greater global equity.

**David Dollar, "Globalization, Poverty, and Inequality since 1980," Policy Research Working Paper No. 3333, The World Bank (2004).
[PDF file is here.]

*(**)David Dollar and Aart Kraay, "Trade, Growth, and Poverty," Policy Research Working Paper No. 2615, The World Bank (2001).
[PDF file is here.] This paper is (**) for EDP&M major.

Leading Issues in Economic Development, 8th ed., Chapter VIII.

*World Bank (Vinod Thomas ed.), The Quality of Growth, Oxford University Press, 2000, Chapters 2 and 3.

World Bank, World Development Report 2000/2001―Attacking Poverty.

*UNDP, Human Development Report 1999 -- Globalization with a Human Face, Oxford University Press, 1999.

Robin Cohen and Paul Kennedy, Global Sociology, New York University Press, 2000.
Chapter 8.

Asian Development Bank, Escaping the Poverty Trap: Lessons from Asia, (1995)

Grading Policy

An essay-type final exam (with a term paper option) will be given at the end of the semester. Details will be discussed in the class. Your performance in the market experiments, and your presentations will also be evaluated. Your class participation and contribution will, of course, be an additional grading factor.




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