ECM 147 Economic Development in Emerging Markets

Transcription

1 ECM 147 Economic Development in Emerging Markets Academic Year Subject Outline: Teaching methods: Assessment: The Module examines changes in emerging economies concentrating in particular on the BRIC countries. It considers the factors that have lead to the growth of these economies and the implications this may have for the world. 20 hours of lectures and seminars in the Spring term. Evaluation is based on a final two-hour written exam in May-June and course-work assessed during the term, carrying a weight of 70% and 30%. The course-work consists of an essay (50% of course work) and a two-hour test (50% of course work) at the end of the Spring term (the last week of the Spring term). The essay must be submitted by 12 th February, Wednesday, week 5 of the Spring term by 4 p.m to the administrator of the PG programmes Mrs S Arnold. Please note that a 5- percentage point penalty applies for each 24-hours period thereafter (excluding weekends). Preparatory Reading Before starting the course, students should consider the following background reading: J. O Neill, 2011, The Growth Map, Portfolio: Penguin. Order. Textbooks (all available in Library) World Economy, Oxford University Press. World Bank, 2006, Reducing Poverty through Growth and Social Policy Reform in Russia, World Bank. Global Economy, World Bank and Institute of Policy Studies. University Press.

2 Lecture Schedule Lecture Date Topic 1 13 January 2014 Introduction 2 20 January Economic History 3 27 January Growth 4 3 February Political Economy of Growth 5 10 February Manufacturing (essay to be handed in by Wednesday, 12 February) 6 17 February Trade 7 24 February Development: Poverty and Inequality 8 3 March tbc 9 10 March Constraints on Growth (Class Presentation) March Test Readings *Indicates compulsory readings to be done for the lecture. You need to read the chapter/article and make notes on it, possibly a single page. We will discuss these notes in the 2 nd hour of each lecture. Please note that these readings provide the theoretical background to the cases we are covering in the lectures and therefore will be extremely important for you. Lecture 1: Introduction - The BRICS (Jim O Neill) *J. O Neill, 2011, The Growth Map, Portfolio: Penguin. DominicWilson, Roopa Purushothaman, 2003, DreamingWith BRICs: The Path to 2050, Goldman Sachs. University Press, chapters 1-3. Olson,M., 1996, Economics in Government: Big Bills Left on the Sidewalk: Why Some Nations are Rich, and Others Poor, The Journal of Economic Perspectives, Vol. 10, No. 2 (Spring, 1996), pp Order, chapter 1, 2, 3 and Introduction. Global Economy, World Bank and Institute of Policy Studies, chapter 1, 2. Lecture 2: History of Economic Growth *Thirlwall, A.P., 2011, Economics of Development, Palgrave Macmillan, Chapter 5. Ahluwalia,M.S., 2002, Economic Reforms in India since 1991, The Journal of Economic Perspectives, Vol. 16, No. 3, pp World Economy, Oxford University Press. Fischer,S., and Gelb, A., 1991, The Process of Socialist Transformation, The Journal of Economic Perspectives, Vol. 5, Issue, 4, pp János Kornai, 2006, The great transformation of Central Eastern Europe: Success and disappointment, Economics of Transition, Volume 14 (2) 2006, University Press, chapters 1, 3.

3 Perkins, D., 1994, Completing China s move to the Market, The Journal of Economic Perspectives, Vol. 8, No. 2, pp Order, chapter 1, 2, 3. Lecture 3: Models of Economic Growth: Experience of China and India World Economy, Oxford University Press, chapter 7, 8. *Ghosh, J., Havlik, P., Ribeiro, M.P., and Urban, W., 2009, Models of BRICs Economic Development and Challenges for EU Competitiveness, The Vienna Institute for International Economic Studies. University Press, chapters 2, 4-8. Global Economy, World Bank and Institute of Policy Studies. Lecture 4: Institutions and Reform: The Political Economy of Growth *Thirlwall, A.P., 2011, Economics of Development, Palgrave Macmillan, Chapter 4. Daniel Berkowitz and David N. DeJong, 2001, Policy Reform and Growth in Post- Soviet Russia, William Davidson Working Paper Number 405. World Economy, Oxford University Press, chapter 5, 7, 10. University Press, chapter 3. Global Economy, World Bank and Institute of Policy Studies, chapter 7. Lecture 5: Manufacturing *Thirlwall, A.P., 2011, Economics of Development, Palgrave Macmillan, Chapter 10. World Economy, Oxford University Press, chapter 4, 10. University Press, chapter 7. Global Economy, World Bank and Institute of Policy Studies, chapter 7. Lecture 6: Trade *Thirlwall, A.P., 2011, Economics of Development, Palgrave Macmillan, Chapter 15. World Economy, Oxford University Press, chapter 2, 3, 6. University Press, chapter. Pedro Cavalcanti Ferreira And Jos E Luiz Rossi1, 2003, New Evidence From Brazil On Trade Liberalization And Productivity Growth, International Economic Review, Vol. 44, No. 4, November Global Economy, World Bank and Institute of Policy Studies, chapter 2, 3. Lecture 7: Growth and Development: Poverty and Inequality *Thirlwall, A.P., 2011, Economics of Development, Palgrave Macmillan, Chapter 2.

4 University Press, chapter 10, 11. Global Economy, World Bank and Institute of Policy Studies, chapter 6. World Bank, 2006, Reducing Poverty through Growth and Social Policy Reform in Russia, World Bank, chapter 2, 5, 6. Lecture 9: Constraints on Growth and Development (Class Debate and Presentations) World Economy, Oxford University Press, chapter 10. University Press, chapters 12, 13. Order, chapter 4, 5, 6 Global Economy, World Bank and Institute of Policy Studies, chapter 3. World Bank, 2006, Reducing Poverty through Growth and Social Policy Reform in Russia, World Bank, chapter. Format: Students will again be divided into 4 groups and I would like each group to consider a particular issue in the BRIC countries. Group 1: Size, Structure and Growth of Economy Group 2: Infrastructure Group 3: Institutions Group 4: Poverty and Inequality Group 5: Human Capital You will need to go to the World Bank site (or other data sources) and obtain information on each of the BRIC countries for the topics you are concerned with. You then need to collate this information, analyse it (through tables and graphs) and present it to the class. You need to conclude about how much it has contributed to the growth of each of the BRICs and whether it constitutes a constraint.

5 Readings for EDEM Though the module is about Emerging economies, it is impossible to cover all economies in a few lectures. I have therefore chosen to concentrate on China and India and to also consider Russia and Brazil from time to time. As far as possible, I am hoping to set readings that cover all 4 countries. These readings therefore are an essential part of the module. When reading, you might wish to keep the following questions in mind. 1. What is the paper about? Its basic rationale. 2. What research questions/hypotheses does it set up? 3. What methodology does it use? 4. What data does it use? 5. What model does it set up? 6. What are its main findings? 7. Do you think there are any shortcomings in the paper? Note: the readings are an essential part of the module. You are advised to read each paper and make a summary for yourself (maybe of a page). Essay Titles Write an essay on either one of the 2 titles below: 1. Growth requires significant amounts of investment both in physical and human capital. To what extent does the experience of the BRICs confirm this? Discuss with reference to the theories of growth. 2. The experience of the BRIC countries indicates that the most important factor leading to an increase in growth is institutional reform. Discuss. The word limit is 2000 words. The essay has to be handed in to Mrs.S.Arnold, the PG Administrator by 4 p.m. on Wednesday, 12 February. For starter readings, please see the lecture outline handed out in class.

6 Questions to prepare from Compulsory Readings (Thirlwall). As preparation for most lectures, there will be a recommended reading that will provide the background for the topic that we will cover in the lecture. In the second half of the lecture, we will discuss some questions in relation to the background reading, so that the concepts are clearer. However, this will NOT be a lecture. It will require you to have done the reading as I will get you to stand up and explain concepts or answer questions. For each lecture, I have highlighted below some questions you should ask yourselves once you have read the chapter. Lecture 2: History of Economic Growth i. What is economic growth? How is it measured? Defined? ii. What is a production Function? What is the Cobb-Douglas Production Function? iii. The Harrod-Domar Model of Growth iv. The Neo-Classical model of growth v. The Endogenous Theories of Growth Lecture 3: Models of Economic Growth: Experience of China and India (contd from Lecture 2) Lecture 4: Institutions and Reform: The Political Economy of Growth i. What do we mean by institutions in the context of economic growth? ii. What kind of indices exist to measure institutions? Kaufman et al (1999); ICRG, BERI etc. iii. Does democracy help or hinder economic development? Lecture 5: Manufacturing i. What are the benefits of the manufacturing sector? ii. Why do developing countries have growth/development plans? iii. What role might the state play in an economy? Lecture 6: Trade i. What are the static gains from trade? ii. What are the dynamic gains from trade? iii. What impact will trade liberalisation have on economic performance? iv. What are the disadvantages of free trade for development? Lecture 7: Growth and Development: Poverty and Inequality i. What are the different ways of measuring inequality? [absolute income gap, relative income gap, coefficient of variation, Lorenz curve and Gini Coefficient]. ii. How can poverty be measured? iii. What is the Human Development Index? And the Human Poverty Index? Lecture 9: Constraints on Growth and Development (Class Debate and Presentations)