Growth Models and Development Strategies
Credits: 4 ECTS
This course provides an introduction to the main theories of economic growth and to key contributions in the development literature and their policy implications. It also looks at a number of contrasting country experiences to illustrate the diversity of economic outcomes and policies. It deals with fundamental questions such as: Why are there rich countries and poor countries? Why some countries grow while others stagnate? How can a poor country industrialise? Are developing economies on the same path as developed ones? Or are they relegated to a subordinate role in a world of uneven development?
The course is organised into four sections, with, in total, 12 sessions of 2 hours each:
- I. Growth and Development (4 sessions)
- II. Trade Integration and State intervention (4 sessions)
- III. Ultimate causes of prosperity (2 sessions)
- IV. Presentations of case studies (2 sessions)
The first section deals with the relationship between economic growth and human development and discusses the neo-classical and the endogenous growth models. It also reviews influential contributions from development economics, paying particular attention to the process of structural change (and economic dualism) and industrialisation. The aim here is to provide key theoretical underpinnings to shed light on the relative economic performance of countries and the potential (and challenges) for developing countries to catch up. The second section concentrates on the crucial themes of trade integration and state intervention (covering inward and outward looking strategies), as well as the role of natural resources and the “resource curse” debate. The third section discusses two ultimate sources of growth and prosperity: geography and institutions. The final two sessions are devoted to the presentation and discussion of case studies (team work) summarising and assessing recent experiences in a number of developing countries in Africa, Asia, and Latin America.
The assessment of the presentation will count for 50% of the course’s grade. The other 50% will be the contribution of the mark of a final exam. The exam consists of a total of seven essay-type questions; students will be required to answer three of them.