ECONOMIC PROBLEMS IN DEVELOPMENT Instructor: Noel Brodsky

Economics 4570 Office: 2831 (215D) Coleman Hall

Spring 2017 Phone: 910 688 3788

Hours: 2:00pm-3:30pm MW

2:00pm-3:00 F

or by Appointment

email: nbrodsky@eiu.edu

http://www.eiu.edu/~econinfo

 

 

Grade Determination:

 

1 Term Paper 100 points

1 Final Exam (cumulative) 100 points

200 points

 

Expected Grade Distribution and Curve Structure:

 

Curve Structure: Average exam score will be set at or near a baseline "B", whenever practical.

The Cutoffs are as follows:

 

88% = A, 77% = B, 66% = C, 55% = D, below 55% is an F

 

Cell Phone Policy: Cell phones must be either turned off or in silent mode during class. Except for emergency purposes, cell phones may not be used in class whatsoever. If you need a calculator, get a calculator, do not use your cell phone.

 

Important Dates:

 

Paper: Proposal Due April 7, 2017 - Paper Length: 10-15 pages, word processed, double-spaced, your work. Final Draft Due Monday April 24, 2017, at 4:00pm. The paper may be turned in on Wednesday, April 26, 2017, with the loss of 2 letter grades, each day thereafter, one letter grade is lost.

 

If you have a documented disability, and wish to discuss academic accommodations, please contact me as soon as possible.

 

Reading Assignments:

Meier, Gerald M. and James E. Rauch, Leading Issues in Economic Development, 8th ed., Ocford University Press, New York, 2005.

Brems, Hans, Pioneers of Economic Thought

 

Course Structure:

 

Topic

I. Measuring Development (Chapter I)

A. Overview (Ch. I.A.)

B. The Evolution of Meaures of Development (per capita income, HDI)

C. Why Are Services Cheaper in the Poor Countries?

D. Burden of Poverty

E. Income Distrubution - Measuring Income Inequality (Ch. VIII.1. / p.437)

 

II. The Models of Growth and Development

1. Growth Models (Ch. I.C)

A. Classical Growth Theory (Ch. I.C.1)

B. Harrod/Domar Growth (Brems)

C. Neoclassical Growth - Samuelson/Solow (Brems)

D. Endogenous Growth (Ch1.C.2)

 

2. Development Models

A. Stages of Development Rostow (Ch.II.5)

B. Structure of Growth - Chenery/Kuznets (Ch. II.1 & 2 and VIII.A.1)

C. Labor Surplus - Lewis (Ch. VI.B.1)

D. Labor Migration - Harris/Todaro (Ch. VI.B.2)

E. Comparing Lewis and Harris/Todaro (Note VI.B.1)

 

III. Trade and Development

1. Center/Periphery Theory:

A. The Prebisch/Singer Thesis (Ch. III.A)

B. Import Substitution Industrialization (Ch. III.A.2 / p. 144)

 

2. Comparative Advantage

A. Trade as an Engine of Growth (Ch. III.A.1)

B. Export Led Industrialization (Ch. III.A.2)

 

IV. Capital Formation, Finance and External Debt

1. Capital Formation

A. Investment (Ch. V.1)

B. Sources of Capital (Ch. V.3)

 

2. Finance

A. Domestic Financial Intermedation (Ch. V.2)

B. Foriegn Aid (Ch. V.4)

C. Debt Service (Ch. V.3.5)

 

3. Multinational Corporations

A. Multinationals: Costs vs. Benefits (Ch III.B)

 

V. Environmental Issues

1.Trade and the Environment

A. Global Environment and Trade (Ch. X.1 & 2)

 

 

Learning Objectives:

 

1.Students will demonstrate the ability to think critically and to use appropriate concepts to analyze qualitatively problems or situations involving the application of Economic Development to real world issues.
2. Students will analyze numerous examples of qualitative and quantitative solutions to real world problems that demonstrate the importance of the material being learned and how it might be applied to real world situations.
3. Students will demonstrate ability and knowledge to discuss the material clearly and objectively both orally and in writing in this course.
4. Students will show their understanding and knowledge of the Economic Development concepts that they may need to make informed decisions, especially in the context of underdeveloped countries.
5. Students can expect to d
evelop economic intuition and analytical skills.
6. To apply economic analysis to a variety of personal, societal, and international issues in a developing country.
7. Acquire model building skills.