The objective of this course is to familiarize the students with the current theoretical literature trying to understand economic growth and development across nations. The approach of this course is to provide a comprehensive introduction to the theoretical paradigms of economic development. In a fast-moving global economic order, there is a persistent demand to synchronize the approaches, theories and development issues for a better understanding of the problems of the developing economies. By its very nature, the scope is interdisciplinary in nature, incorporating non-economic dimensions like culture, norms, and values as well as political, historical and social processes. The objective of this course is to familiarize students with the conceptual routes, theoretical dynamics and practical strategies of growth and development. It is expected that this course would orient them towards major themes of development, lead them towards more methodical probes and equip them with adequate analytical knowledge. At the end of this course, students should be able(i) to understand and critically evaluate alternative theories of growth. (ii) show a clear understanding of the recent literature, both empirical and analytical, on theories of underdevelopment and growth in developing countries;(iii) be able to evaluate critically some of the results in the literature, particularly those related to development issues.
A. P. Thirlwall (2011): Growth and Development with special reference to developing economies,7th Ed, McMillan.
Acemoglu, D. (2009): Introduction to Modern Economic Growth. Princeton University Press.
Adam Szirmai (2014): The Dynamics of Socio-Economic Development: An Introduction, 2nd Ed, Cambridge University Press.
Alain de Janvry, Elisabeth Sadoulet (2016): Development Economics: Theory and Practice, Routledge.
Charles I. Jones and Dietrich Vollrath (2013): Introduction to Economic Growth, 3rd Ed, W. W. Norton & Company.
David Alexander Clark (2006): The Elgar Companion to Development Studies, Edward Elgar.
David N. Weil (2013): Economic Growth, 3rd Ed, Pearson.
Dwight H. Perkins, Steven Radelet, David L. Lindauer and Steven A. Block (2013): Economics of Development, 7th Ed, W. W. Norton & Company
Meier, G.M and J.E. Rauch (2014): Leading Issues in Economic Development, Oxford University Press, New Delhi
Gerard Roland (2016): Development Economics, Routledge.
Graham Hacche (1987): The Theory of Economic Growth: An introduction, Macmillan.
Subrata Ghatak (2008): Introduction to Development Economics, 4th Ed, Routledge.
Aghion, P. & Howitt, P. (2008), The Economics of Growth, MIT Press, Cambridge MA.
Hywel G. Jones (1976): An Introduction to Modern Theories of Economic Growth, McGraw-Hill.
Irma Adelman (1961): Theories of Economic Growth and Development, Stanford University Press.
James M. Cypher, James L. Dietz (2014): The Process of Economic Development,4th Ed, Routledge.
John Rapley (2007): Understanding Development: Theory and Practice in the Third World, 3rd Ed, Lynne Rienner Publishers.
Martha Nassbaum and Amarthya Sen (1993): The Quality of Life, the World Institute for Development Economics.
Michael P. Todaro, Stephen C. Smith (2017): Economic Development 7th Ed, Pearson Addison Wesley.
Preston, P.W(1996): Development Theory: An Introduction, Blackwell Publishers.
Richard Peet and Elaine Hartwick (2009): Theories of Development: Contentions, Arguments, Alternatives,2nd Ed, The Guil Ford Press.
Robert Joseph Barro, Xavier Sala-i-Martin (2009): Economic Growth, 2nd Ed, MIT Press.
Module-I: Economic Development –Overview (10 Hours)
Meaning and measurement of economic development: conventional, human development index (Human Development Index, Gender Related Development Index, Gender Empowerment Measure, Gender Inequality Index, Human Poverty Index). - Quality of life indices: Entitlements approach- Capabilities and Functioning- Development as Freedom- Basic Need Approach - Human Rights-Based Approach- Three Core Values of Development - Development Gap -Inequality in income distribution- Kuznets Inverted U hypothesis- Lorenz Curve and Gini-coefficient - Concept of Sustainable Development.
- 1.1.Meaning of economic development
- 1.2 Human Development Index
- 1.3 Gender Related Development Index – Gender Empowerment Measure, Gender Inequality Index
- 1.4 Human Poverty Index
- 1.5 Entitlements approach- Capabilities and Functioning
- 1.6 Development as Freedom
- 1.7 Basic Need Approach & Human Rights Based Approach
- 1.8 Three Core Values of Development
- 1.9 Development Gap
- 2.0 Inequality in income distribution
- 2.1 Kuznets Inverted U hypothesis
- 2.2 Lorenz Curve and Gini-coefficient
- 2.3 Concept of Sustainable Development
Unit- 2: Theories of Underdevelopment (25 Hours)
Vicious Circle of Poverty—Dualistic Theories. – Social – Financial and Technical Dualism Prebisch- Singer thesis and Myrdal thesis: Backwash and spread effect- Circular and cumulative causation- Rostow's stages of growth. —Vent for Surplus theory of Hla Myint—Stable Theory –the Dutch Diseases. - Rural-urban migration and urban unemployment (Harris-Todaro model). - Political Economy of Underdevelopment (Theory of dependency): Paul Baran, Gundar Frank, Samir Amin and Emmanuel Wallerstein (World systems approach).
- 2.1 Vicious Circle of Poverty
- 2.2 Dualistic Theories. – Social – Financial and Technical Dualism
- 2.3. Prebisch- Singer thesis
- 2.4 Myrdal thesis – Backwash and spread effect- Circular and cumulative causation
- 2.5 Rostow’s stages of growth
- 2.6 Vent for Surplus theory of Hla Myint
- 2.7 Stable Theory
- 2.8 The Dutch Diseases
- 2.9 Rural-urban migration and urban unemployment (Harris-Todaro model)
- 2.10 Political Economy of Underdevelopment (Theory of dependency): Paul Baran, Gundar Frank, Samir Amin and Emmanuel Wallerstein (World systems approach).
Unit- 3: Theories of Development and Growth (25 Hours)
Classical Theory of Development–Adam Smith, David Ricardo, Karl Marx and Schumpeter. - Theories of Economic Growth: Harrod-Domar Model. - Neo-Classical Growth Models – Solow and Meade. - Cambridge Growth Models: Mrs. Joan Robinson's and Kaldor's Growth Models. - Endogenous Growth Models: (Ramsey, Romer; Uzawa-Lucas, AK, Arrow’s Model, Grossman and Helpman’s model, Aghion and Howitt).
- 3.1 Classical Theory of Development–Adam Smith, David Ricardo, Karl Marx and Schumpeter
- 3.2 Theories of Economic Growth: Harrod-Domar Model.
- 3.3. Neo-Classical Growth Models – Solow and Meade
- 3.4. Cambridge Growth Models: Mrs. Joan Robinson’s and Kaldor’s Growth Models
- 3.5 Endogenous Growth Models: (Ramsey, Romer; Uzawa-Lucas, AK, Arrow’s Model, Grossman and Helpman’s model, Aghion and Howitt).
Unit- 4: Approaches to Development (20 Hours)
Theory of Big Push- Critical Minimum Effort Thesis- Low Income Equilibrium Trap. - Balanced and Unbalanced Growth. (Self-Study) - Development with Unlimited Supply of Labour, Ranis and Fei Model - Michael Kremer’s O-Ring Theory of Economic Development-- The Jorgenson model and Dixit-Marglin model.
- 4.1 Theory of Big Push
- 4.2.Critical Minimum Effort Thesis
- 4.3.Low Income Equilibrium Trap
- 4.4 Balanced and Unbalanced Growth
- 4.5. Development with Unlimited Supply of Labour
- 4.6. Ranis and Fei Model
- 4.7. Michael Kremer’s O-Ring Theory of Economic Development
- 4.8. The Jorgenson model and Dixit-Marglin model
Unit- 5: Critical Issues in Development Process (10 Hours)
Role of Financial Institutions in Economic Development: (Acemoglu and Zilibotti model) - Globalization and Development: Views of Stiglitz. - Development and Human Rights - Culture and Development - Social Capital and Development. - Corruption, Crime, Social Exclusion and Development. - Climate Change and Development. - Energy and Development.
- 5.1. Role of Financial Institutions in Economic Development: (Acemoglu and Zilibotti model)
- 5.2. Globalization and Development: Views of Stiglitz.
- 5.3. Development and Human Rights
- 5.4. Culture and Development
- 5.5. Social Capital and Development.
- 5.6. Corruption, Crime, Social Exclusion and Development.
- 5.7. Climate Change and Development.
- 5.8. Energy and Development