Development Policy

Lecture 2: Measuring Economic Growth and Development

Chau Van Thanh

Required Readings:

1. Perkins et al. 2006. Chapter 2.

Suggested Readings:

1. Human Development Report 2010, The Real Wealth of Nations: Pathways to Human Development. 20th Anniversary Edition. Available online in English at http://hdr.undp.org/en/. A Vietnamese language summary is available at http://hdr.undp.org/

Lecture 3: Growth Theory: Harrod-Domar, Solow, Endogenous, Technology Catch-up

James Riedel

Required Readings:

1. Perkins et al. 2006. Chapter 4, pages. 103-135

Suggested Readings:

1. Easterly, William, "The Ghost of Financing Gap: How the Harrod-Domar Model Still Haunts Development Economics," Journal of Development Economics, 60 (2), December, 1999, 423-438.

2. Lucas, Robert E, Jr., "Trade and the Diffusion of the Industrial Revolution," American Economic Journal: Macroeconomics, 2009, 1/1, 1-25.

Lecture 4: Growth Accounting

James Riedel

Required Readings:

1. Perkins et al. 2006. Chapter 3, pages 64-74

2. Riedel, James, et. al., How China Grows: Investment, Finance, and Reform (Princeton University Press, 2007), Chapter 2.

Suggested Readings:

1. Young, Alwyn, "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," Quarterly Journal of Economics, Volume 110 (3), August 1995, 641-680.

Review – Chau Van Thanh

Lecture 5: Growth Empirics: Cross-Country Evidence

James Riedel

Required Readings:

1. Perkins et al. 2006, Chapter 3, pages 90-102

2. Mankiw, N. G., D. Romer, and D. Weil. "A Contribution to the Empirics of Economic Growth."Quarterly Journal of Economics 107 (1992): 401-437.

Suggested Readings:

1. Jones, Charles and Paul Romer, "The New Kaldor Facts: Ideas, Institutions, Population and Human Capital, American Economic Journal: Macroeconomics 2010, 2:1 224-245

Lecture 6: Geography and Institutions

James Riedel

Required Readings:

1. Acemogul, Daron and James Robinson, "Why Nations Fail" Milken Institute Review, Third Quarter

Suggested Readings:

1. Acemoglu, Daron, Simon Johnson and James Robinson, "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," Quarterly Journal of Economics, 117, no. 4 (November 2002) 1231-1294.

2. Diamond, Jared, Guns, Germs and Steel: The Fates of Human Societies (WW Norton, 1999)

Lecture 7: Is Growth Good for Poverty?

Chau Van Thanh

Required Readings:

1. Wuyts, Marc (2011) "Growth, Employment and the Productivity-Wage Gap: Revisiting the Growth-Poverty Nexus," Development and Change, 42:1, 437-447.

Suggested Readings:

1. Dollar, David and Aart Kraay (2002) "Growth IS Good for the Poor," http://www-wds.worldbank.org/

2. Foster, James and Miguel Szekely (2008) "Is Income Growth Good for the Poor? Tracking Low Incomes Using General Means," International Economic Review, 49:4, p. 1143-1172.

Lecture 8: Escaping Poverty

Chau Van Thanh

Required Readings:

1. Krishna, Anirudh (2004) "Escaping Poverty and Becoming Poor: Who Gains, Who Loses and Why?" World Development, 32:1, p. 121-136.

Suggested Readings:

1. Cecchini, Simone and Andras Uthoff (2008) "Poverty and Employment in Latin America, 1990-2005," CEPAL Review, http://papers.ssrn.com/

Review - Chau Van Thanh

Lecture 1: Patterns of Development and Issues of Development Policy

Chau Van Thanh

Required Readings:

1. Perkins et al. 2006. Chapter 1.

2. Dani Rodrik and Mark R. Rosenzweig (2009) Development Policy and Development Economics: An Introduction.

Suggested Readings:

1. Michael P. Todaro and Stephen C. Smith, Economic Development, Chapter 1: Economics, Institutions, and Development: A Global Perspective (10th Edition), London: Pearson Education, 2009.

Lecture 9: Growth and Distribution

Chau Van Thanh

Required Readings:

1. Bowman, Kirk (1997) "Should the Kuznets Curve Be Relied on to Produce Equalizing Growth? Evidence from Post-1950 Development," World Development, 25:1, pp. 127-143.

Suggested Readings:

1. Miguel Szekely and Marianne Hilgert (1999) "What's Behind the Inequality We Measure: An Investigation Using Latin American Data," Inter-American Development Bank, Research Department Working Paper No. 409, (December), http://www.iadb.org/

Lecture 10: Does Inequality Matter for Development?

Chau Van Thanh

Required Readings:

1. Wade, Robert (2011) "Global Trends in Income Inequality: What is Happening and Should We Worry? Challenge, September-October, p. 54-75.

Suggested Readings:

1. Birdsall, Nancy (2010) "The (Indispensible) Middle Class in Developing Countries," in Ravi Kanbur and Michael Spence, eds., Equity and Growth in a Globalizing World, World Bank.

2. Asian Development Bank (2012) Asian Development Outlook: Confronting Rising Inequality in Asia, http://www.adb.org/

Lecture 11: Lewis Model of a Surplus Labor Economy

James Riedel

Required Readings:

1. Perkins, et al. 2006, Chapter 4, pagers 136-147

Suggested Reading:

1. Lewis, W. Arthur (1954) "Economic Development with Unlimited Supplies of Labor," The Manchester School, 22:2, 139-191.

Lecture 12: Import-substitution verses Export-oriented industrialization

James Riedel

Required Readings:

1. Perkins, et al. 2006, Chaptes 18 and 19

Suggested Readings:

1. Kravis, Irving, "Trade as the Handmaiden of Growth: Similarities between the Nineteenth and Twentieth Centuries," Economic Journal, 80, Dec. 1970, 850-872.

Review

Lecture 13: Current Issues and Debates

James Riedel

Required Readings:

1. Baldwin, Richard, "Global Supply Chains: Why they Emerged, Why They Matter and Where They are Going," Fung Global Institute, Working Paper, 2012

2. Pham, Thi Thu Tra and James Riedel, "An empirical assessment of comparative advantage dynamics"

Suggested Readings:

1. Hausmann, Ricardo, Jason Hwang, and Dani Rodrik, "What You Export Matters," Journal of Economic Growth, 2007.

Lecture 14: Vietnam Perspective

James Riedel

Required Readings:

1. CIEM, Vietnam Competitiveness Report 2010

2. Riedel, James, "On the National Competitiveness of Vietnam" 2011

3. Pham, Thi Thu Tra, "Should supporting industries be supported?" Vietnam Economic Management Review, Special Issue "Promoting Industrial Cluster Development in Vietnam".

Midterm Exam

Lecture 15: Education and Development

Chau Van Thanh

Required Readings:

1. Abhijit Banerjee and Esther Duflo (2011), Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty, Public Affairs. Chapter 4: "Top of the Class."

Suggested Readings:

1. Richard Wilkinson and Kate Pickett (2010), "The Spirit Level, Why Equality is Better for Everyone," Chapter 8, "Education Performance," Penguin Books

2. Paul Glewwe and Michael Kremer (2006), "Schools, Teachers, and Education Outcomes in Developing Countries," http://www.hks.harvard.edu

Regional Development Field Trip

Regional Development Field Trip

Lecture 16: Health Policies

Chau Van Thanh

Required Readings:

1. Abhijit Banerjee and Esther Duflo (2011), Poor Economics, A Radical Rethinking of the Way to Fight Global Poverty, Public Affairs. Chapter 3: "Low-hanging fruit for better (global) health."

Suggested Readings:

1. Eddy van Doorslaer, et al. (2006) "Effect of Payments for Health Care on Poverty Estimates in 11 Countries in Asia: An Analysis of Household Survey Data, Lancet, 368, 1357-64.

2. Hsiao et al. (2007), "Social Health Insurance for Developing Nations," WBI Development Studies, The World Bank, Washington, D.C. http://harvardschoolofpublichealth.com/

Lecture 17: Role of Agriculture

Guest Lecture - Tran Tien Khai

Required Readings:

1. Bruce F. Johnston and John W. Mellor (1961) "The Role of Agriculture in Economic Development," American Economic Review, 51:4, p. 566-593.

Suggested Readings:

1. Massoud Karshenas (2001) "Agriculture and Economic Development in Sub-Saharan Africa and Asia," Cambridge Journal of Economics, 25, 315-342.

2. Gerdien Meijerink and Pim Roza (2007) "The role of agriculture in economic development" Markets, Chains and Sustainable Development Strategy and Policy Paper, no. 5. Stichting DLO: Wageningen. Available at: http://www.boci.wur.nl

Lecture 18: Role of the State in Rural Development

Guest Lecture - Tran Tien Khai

Required Readings:

1. Timmer, Peter C (1999) "The Role of the State in Agricultural Development," in C. Peter Timmer (ed.). Agriculture and the State. Ithaca, NY: Cornell University Press.

Suggested Readings:

1. Colin MacAndrews, Alex Brillantes, and Ammar Siamwalla (2001) "Devolution and Decentralization" in Ammar Siamwalla (ed.), The Evolving Roles of the State, Private, and Local Actors in Rural Asia, Study of Rural Asia: Volume 5, Oxford University Press.

2. Dorward, Andrew, Jonathann Kydd, Jamie Morrision and Ian Urey (2004) "A Policy Agenda for Pro – Poor Agricultural Growth." World Development, 32:1, 73 – 89.

Lecture 19: Land Tenure and Rural Development

Guest Lecture - Tran Tien Khai

Required Readings:

1. Deininger, Klaus (2003) "Executive Summary." In Klaus Deininger (ed.). Land Policies for Growth and Poverty Reduction, World Bank.

Suggested Readings:

1. Quan, Julian (1998) "Land Tenure and Sustainable Rural Livelihoods," in Diana Carney, ed., Sustainable Rural Livelihoods: What Contribution Can We Make? UK: Department for International Development Press.

2. Feder, Gershon and David Feeny (1991) "Land Tenure and Property Rights: Theory and Implications for Development Policy," The World Bank Economic Review, 5:1, 135 – 153.

3. Feder, Gershon and Akihiko Nishio (1999) "The Benefits of Land Registration and Titling: Economic and Social Perspectives," Land Use Policy, 15:1, 25-43.

4. Hue Le (2008) "Economic Reforms and Mangrove Forests in Central Vietnam," Society & Natural Resources, 21:2, 106-119.

5. Quy-Toan Do and Lakshmi Iyer (2008) "Land Titling and Rural Transition in Vietnam," Economic Development and Cultural Change, 56:3, 531-579.

6. Klaus Deininger, Clarissa Augustinus, Stig Enemark and Paul Munro-Faure (2010) "Innovation in land rights recognition, administration and governance". Joint Organizational Discussion Paper—Issue 2, The World Bank, GLTN, FIG and FAO.

Review – Tran Tien Khai

Lecture 20: Sustainable Development

Chau Van Thanh

Required Readings:

1. Perkins et al. 2006. Chapter 20

Suggested Readings:

1. Howarth, Richard B. (2007) "Towards an operational sustainability criterion," Ecological Economics, 63, pp. 656–663.

2. View Scientific American's interactive web article "How Much is Left? The Limits of Earth's Resources, http://www.scientificamerican.com/

Lecture 21: Natural Resources: Blessing or Curse?

Chau Van Thanh

Required Readings:

1. Wright, Gavin and Jesse Czelusta (2004) "The Myth of the Resource Curse," Challenge, 47:2, 6-38.

Suggested Readings:

1. Van der Ploeg, Frederick (2011) "Natural Resources: Curse or Blessing? Journal of Economic Literature, XLIX(2): 366-420.

2. Andrew Williams (2011) "Shining a Light on the Resource Curse: An Emprical Analysis of the Relationship Between Natural Resources, Transparency and Economic Growth," World Development, 39:4, 490-505.

Lecture 22: Domestic Saving and Financial Institutions

James Riedel

Required Readings:

1. Perkins et al. 2006 Chapter 13

Suggested Readings:

1. Levine, Ross, "Finance and Growth: Theory, Evidence and Mechanisms," March 2003.

2. Riedel, James, et. al., How China Grows: Investment, Finance, and Reform (Princeton University Press, 2007), Chapter 4.

Lecture 23: Foreign Investment and Foreign Aid

James Riedel

Required Readings:

1. Perkins et al. 2006 Chapter 14

Suggested Readings:

1. Burnside, C. and D. Dollar, "Aid, Policies and Growth," American Economic Review 90 (2000) 847-68 2000.

2. Rajan, R.G. and A Subramanian.. "What Undermines Aid's Impact on Growth?" IMF Working Paper, WP/05/126, 2005.

2. Obstfeld, Maurice. 2008. "International finance and growth in developing countries: What have we learned." Commission on Growth and Development, Working Paper No. 34.

Lecture 24: Stabilization Policies in Vietnam

James Riedel

Required Readings:

1. Pham, Thi Thu Tra and James Riedel, "Expectations and the Cost of Disinflation in Vietnam," Journal of Asian Pacific Economy (Routledge), 2013

2. Pham, Thi Thu Tra and James Riedel, "On the Conduct of Monetary Policy in Vietnam," Asia Pacific Economic Literature (Blackwell), 2012

Final Review – Chau Van Thanh

FINAL EXAM