APPLIES TO ACADEMIC YEAR 2015/2016 Norwegian version

ELE 3730 Development Economics

Responsible for the course
Per Botolf Maurseth

Department
Department of Economics

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction
Development problems are decisive for living standards for a large share of the world's population. Development issues are also important to understand international economic policy and development assistance policies. The course gives an introduction to development economics. Emphasis is placed on theory and empirics. The course also gives an introduction to development assistance politics.

Learning outcome
The course gives an introduction to development economics, development policies and development assistance politics. The course is divided into four parts. The first part gives an introduction to development trends and to main concepts in development economics. The students will be given presentations of living standards in poor countries, basic trends in economic development and the role of poor countries in the world economy. The next part is about development economic issues with an emphasis on internal relationships in poor countries. Growth economics, inequality, institutions and structural change are keywords. The third part focuses on international economics and international relations. Relationships between poor countries and between poor and rich countries are discussed. An introduction to the main functions of international organisations like the WTO, IMF and the World Bank is given. The last part of the course is about development assistance and development assistance politics.

Acquired Knowledge
On completion of the course, students will be able to handle main concepts in development economics analytically. The students will have an understanding of how development depends both on internal relationships within poor countries and on international relationships and the international economy. The students will have gained an understanding of the importance of structural change from agriculture to manufacturing and service production and will have acquired some knowledge about barriers to development. They will also have knowledge about main international organisations like the WTO, IMF and the World Bank, and will have learnt about main dilemmas i development assistance policy.

Acquired Skills
On completion of the course the students will have acquired basic skills enabling them to apply economic theory to understand situations in poor countries. They will have analytical abilities to analyse development issues and be able to discuss main topics and different approaches in development economics. They will be able to follow debates on development assistance.

Reflection
On completion of the course students will have gained insights into main dilemmas in development policy. How can priorities in development policy be understood? How can development assistance consolidate or change political power? How can development assistance contribute to development compared to international trade of international investments?

Prerequisites
The students should have some insights in basic macroeconomics and microeconomics.

Compulsory reading
Books:
Todaro, Michael P., Stephen C. Smith. 2015. Economic development. 12th ed. Pearson Education. 1-9, 11-14. Ny lærebok

Book extract:
Acemoglu, Simon, Daron Johnson, James A. Robinson. 2005. Institutions as a fundamental cause of long-run growth. I: Aghion, Philippe and Steven N. Durlauf, eds. Handbook of economic growth. Vol 1A. Elsevier. Kapittel 6, 385-472 (Publiseres på Itslearning). Utvalgte deler leses ekstensivt
Ray, Debraj. 1998. Development economics. Princeton University Press. Kapittel 6 og 7
Rødseth, A. 1998. Rike og fattige land : nasjonalprodukt som mål for inntekt. I: Rødseth, A og C. Riiis, red. Markeder, ressurser og fordeling : artikler i anvendt økonomi. Ad notam Gyldendal. 296-334 (Publiseres på Itslearning). Utvalgte deler leses ekstensivt

Articles:
Easterly, W. 2009. Can the West Save Africa?. Journal of economic literature. 47 (2). 373-447 (Publiseres på Itslearning). Utvalgte deler leses ekstensivt
Sachs, J. D ... [et al.]. 2004. Ending Africa's Poverty Trap. Brookings Papers on Economic Activity. 117-240. (Publiseres på Itslearning) Utvalgte deler leses ekstensivt

Other:
Maurseth, Per Botolf. 2013. Oversikt over vekstmodeller i utviklingsøkonomi


Recommended reading

Other:
Anbefalt tilleggslitteratur kunngjøres ved semesterstart


Course outline

• Living standards in poor countries.
• Economic growth and development.
• Structural change from agriculture to manufacturing and services.
• Inequality
• Governance and corruption
• International trade
• International investments
• Development assistance