Development Economics : a Macroeconomic perspective


Objectif

Objectives
This course tackles three recurrent but yet topical macroeconomic issues related to growth and development in developing economies. It specifically assesses the importance of capital flows and external finance for developing countries and draws a comparative analysis of the effectiveness of migration, remittances and foreign aid in promoting growth and alleviating poverty. After introducing the main stylized facts and the historical and theoretical background relevant to each topic, the focus will be on their impact at the macro, meso but also micro-level using recent empirical evidence on these questions. This last part also tries to identify channels for development through institutions and governance in a globalized world.

This course is complementary to the Development Microeconomics course (Semester 1).

Pre-Requisites
This course is both theoretical and empirical. It therefore presumes familiarity with basic economic theory (growth models, macroeconomic stabilization mechanisms, microeconomic principles). It also requires some background in the econometrics of evaluation and panel data. 
 

Plan

Chapter 1. International Migration, Remittances and Development

  • Measurement and Stylized Facts
  • Theoretical Background
  • Empirical Evidence

Chapter 2. Foreign Aid, Growth and Development

  • Measurement and Stylized Facts
  • Theoretical Background
  • Empirical Evidence

Chapter 3. Institutions, Governance and Development

  • Measurement and Stylized Facts
  • Theoretical Background
  • Empirical Evidence

Références

Chapter 1. International Migration, Remittances and Development
•    Todaro/Smith, Economic Development, chapter 3 and 7
•    Clemens & McKenzie (2014), Why don't remittances appear to affect growth? World Bank Policy Research Working Paper, (6856)
•    De Haas, H. (2012). The migration and development pendulum: A critical view on research and policy. International Migration, 50(3), 8-25.
•    McKenzie, D., & Sasin, M. J. (2007). Migration, remittances, poverty, and human capital: conceptual and empirical challenges. World Bank Policy Research Working Paper, (4272).
•    Rapoport, H., & F. Docquier (2006). The economics of migrants' remittances. Handbook of the economics of giving, altruism and reciprocity, 2, 1135-1198.
•    Stark, O., & Bloom, D. E. (1985). The New economics of labor migration. The American Economic Review, 75(2), 173-178.
 
Chapter 2. Foreign Aid, Growth and Development
•    Todaro/Smith, Economic Development, chapter 3 and 14
•    Brückner, M. (2013). On the simultaneity problem in the aid and growth debate. Journal of Applied Econometrics, 28(1):126-150.
•    Burnside, C. and Dollar, D. (2000). Aid, policies, and growth. American Economic Review, 37(6):847-868.
•    Rajan, R., & Subramanian, A. (2007).Does aid affect governance? The American Economic Review, 97(2), 322-327.
•    Rajan, R. G., & Subramanian, A. (2008). Aid and growth : What does the cross-country evidence really show? The Review of Economics and Statistics, 90(4), 643-665.

Chapter 3. Institutions, Governance and Development
•    Todaro/Smith, Economic Development, chapter 2, 4 and 11
•    Collier, P. (2007). The bottom billion: Why the poorest countries are failing and what can be done about it. Oxford University Press.
•    Acemoglu, D. & J.A. Robinson (2001). The Colonial Origins of Comparative Development: An Empirical Investigation. The American Economic Review, 91(5), 1369-1401.
•    Acemoglu, D. & J.A. Robinson (2012). Why nations fail: the origins of power, prosperity and poverty. New York: Crown Business.