ECO 333K • Development Economics
This course studies important aspects of economic development in modern times. We begin by examining concepts of poverty and inequality and alternative ways to measure the distribution of income. Next we review some of the structural changes that occur during economic development, including economic influences on fertility, and the demographic transition. Then we examine several models of economic growth and development. Next we study stategies countries have pursued in their attempts to industrialize, focusing on policies toward agriculture, and trade policy. The other major stategy for industrialization has involved trade policy. First we study the contribution of international trade to economic development using the Heckscher-Ohlin model. Then we look in detail at two common industrialization strategies that are based on manipulating international trade, import substitution and export promotion. The last portion of the course considers the role of financial markets in economic development. Here topics include informal financial arrangements and policies to address lack of access to formal finance, such as microfinance and group lending.