ECON5310 Development Economics - 2019

ECON5310
Postgraduate
Term 2
6 Units of Credit
On Campus
Economics
This course outline is provided in advance of offering to guide student course selection. Please note that while accurate at time of publication, changes may be required prior to the start of the teaching session. You should always access the current online version of the outline when the Term commences.

1. Course Details

Summary of Course

Poverty and underdevelopment in many countries are among the main contemporary challenges for humanity. This course provides an in-depth discussion of different economic explanations of underdevelopment, and modern strategies for fostering development. We will investigate the role of institutions, institutional change, and markets as they relate to economic development, and discuss related domestic and international economic policy questions. Special emphasis is put on the interplay and synergy between economic theory (attempting to explain underdevelopment) and empirical data (providing both motivating facts and specific test grounds for theory). At the end of this course, students will be able to design innovative ways to assess whether a proposed development intervention is likely to successfully improve the welfare of its target population.

Teaching Times and Locations

Please note that teaching times and locations are subject to change. Students are strongly advised to refer to the Class Timetable website for the most up-to-date teaching times and locations.

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

​This course fulfils the requirement of an elective in the Economics (BEc) and Business Economics (BCom) majors, as well as in the Development Studies program and the Political Economy program in the Faculty of Arts and Social Sciences. The material covered in this course is related to that in the economics (ECON) courses 2111 and 3109. It is a natural continuation of 2111, though the latter is not a prerequisite.

ECON2101 (Microeconomics 2) and ECON1102 (Macroeconomics 1) are prerequisites for this course. Students should be warned that good command of the material taught in the two prerequisite courses is essential for successfully mastering the material in ECON3110. A good grasp of the material in ECON1202 is also essential, the course involves mathematical models and problem-solving. A basic understanding of statistics and/or econometrics (e.g., ECON 2206) is useful.

Please note that, like many upper-level economics courses, the material encompasses theoretical models and empirical arguments. Hence a reasonable facility with mathematical and econometric methods is necessary.

Alert: Content is Open to Argument!

It is extremely important to note that, in large part, this course does not deal with accepted answers to conventional questions. Many of the questions we will address and discuss are current puzzles about which there are conjectures and insights, but no known “right answers” that can be memorised. Indeed, different pieces of reading material assigned on the same topic will sometimes contradict each other. Assignments and exams will reflect this nature of the material; marks will be awarded for evidence of reflection and reasoning, not for merely reproducing textbooks or lecture notes.

2. Staff Contact Details

Position Title Name Email Location Phone Consultation Times
Lecturer-in-chargeDrGautam BoseRoom 430B9385 3318

Communication with staff

You should feel free to contact your lecturer or tutor about any academic matter. The best times to make your enquiries about the course material are before or after lectures or tutorials, and during consultation time. We will not indulge in lengthy emails explaining course subject material.

Email correspondence on administrative matters (e.g. advising inability to attend tutorial) will be responded to within 48 hours, but not over weekends. Please note that the date and time of the final exam is determined by the exams office. Course staff do not know this information in advance, nor do they have any influence on the scheduling.

3. Learning and Teaching Activities

Approach to Learning and Teaching in the Course

The philosophy underpinning this course and its Teaching and Learning Strategies are based on “Guidelines on Learning that Inform Teaching at UNSW. Specifically, the lectures, tutorials and assessment have been designed to appropriately challenge students and support the achievement of the desired learning outcomes. A climate of inquiry and dialogue is encouraged between students and teachers and among students (in and out of class). The lecturers and tutors aim to provide meaningful and timely feedback to students to improve learning outcome.

An understanding of any economic phenomenon has two components. Theory investigates causal factors that produce and sustain the phenomenon (in this case, underdevelopment) and examines the processes through which causality works. The facts that theory attempts to explain are provided by empirical observations and analysis. Empirical data is also used to test the validity of the theory in the context of specific cases. In this course, we will emphasise this synergy between theory and empirics. Students will be particularly encouraged to question the validity of theories, as well as the relevance of specific facts.

Learning Activities and Teaching Strategies

The examinable content of the course is defined by the references given in the Lecture Schedule, the content of Lectures, and the content of the Tutorial Program.

Lectures

The purpose of Lectures is to provide a logical structure for the topics that make up the course; to emphasize the important concepts and methods of each topic, and to provide relevant examples to which the concepts and methods are applied.

Tutorials

Tutorials are an integral part of the subject. Tutorial presentations will build on the material discussed in class with the lecturer.

Out-of-Class Study

While students may have preferred individual learning strategies, it is important to note that most learning will be achieved outside of class time. Lectures can only provide a structure to assist your study, and tutorial time is limited.
An “ideal” strategy (on which the provision of the course materials is based) might include:
  • Reading of the relevant chapter(s) of the text and any readings before the lecture. This will give you a general idea of the topic area.
  • Attendance at lectures. Here the context of the topic in the course and the important elements of the topic are identified. The relevance of the topic should be explained.
  • Attending tutorials and attempting the tutorial questions.

5. Course Resources

The website for this course is on UNSW Moodle.

The textbook for this course is:
  • Ray, Debraj: Development Economics. Princeton 1998. (Ray).
We will also refer to several articles from:
Banerjee, Abhijit, Roland Benabou, and Dilip Mookherjee: Understanding Poverty. [You can access an online version free of charge through the UNSW library.] (BBM).
The property rights section will use:
  • Besley, Timothy J., and Maitreesh Ghatak. "Property rights and economic development." (2009).
Other readings: An assortment of readings is recommended below, organised roughly by topic. Many but not all are required. The course schedule details when these are to be read. The rest may be useful for relevant presentations, analysis papers, or a better understanding of the subject.


This list may be amended as the semester progresses.

Perspectives
  • Sen, A. 1998. Mortality as an indicator of economic success and failure. The Economic Journal, 108(446), 1-25.
  • Banerjee, A. V., & Duflo, E. 2007. The economic lives of the poor. The Journal of Economic Perspectives, 21(1), 141.
  • Ray, Debraj. 2007. “Development Economics,” in the New Palgrave Dictionary of Economics, ed. Lawrence Blume and Steven Durlauf. Palgrave Macmillan.
History, Institutions and coordination failure
  • D. Acemoglu, S. Johnson and J. Robinson 2001, “The Colonial Origins of Comparative Development: An Empirical Investigation,” AER, 91(5), 1369-1401
  • Banerjee and Iyer 2005. History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India. AER, 95(4), 1190-1213.
  • Basu, Kaushik, and Pham Hoang Van. "The economics of child labor."American economic review (1998): 412-427.
  • Bose, Gautam. "Institutions and Institutional Change: A Review of Conceptual and Analytical Issues." In Limam (ed.) Institutional Reform and Development in MENA region (1999).
  • S Engerman and K Sokoloff. 2000. Institutions, Factor Endowments and Paths of Development in the New World, JEP 14(3), 217-232.
  • Glaeser, E. L., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. 2004. Do institutions cause growth? Journal of Economic Growth, 9(3), 271-303.
  • Kremer, Michael. "The O-ring theory of economic development." The Quarterly Journal of Economics (1993): 551-575.
  • Murphy, Kevin M., Andrei Shleifer, and Robert W. Vishny. "Why is rent-seeking so costly to growth?" The American Economic Review 83.2 (1993): 409-414.
  • Nunn, N. 2008. The Long-Term Effects of Africa’s Slave Trades. Quarterly Journal of Economics 123, no. 1: 139–176.
  • Nunn, Nathan. "The importance of history for economic development." Annu. Rev. Econ. 1.1 (2009): 65-92.
  • Nunn, N., & Wantchekon, L. 2009. The slave trade and the origins of mistrust in Africa (No. w14783). National Bureau of Economic Research.
  • Whatley, Warren, and Rob Gillezeau. "The impact of the transatlantic slave trade on ethnic stratification in Africa." The American Economic Review 101.3 (2011): 571-576.
Poverty and Inequality
  • Galor, O., & Zeira, J. (1993). Income distribution and macroeconomics. The Review of Economic Studies, 60(1), 35-52.
  • Banerjee, A. V., & Newman, A. F. (1994). Poverty, incentives, and development. The American Economic Review, 84(2), 211-215.
  • Bose, G. (1997). Nutritional efficiency wages: a policy framework. Journal of Development Economics, 54(2), 469-478.
Gender
  • Duflo, E. (2012). Women empowerment and economic development. Journal of Economic Literature, 50(4), 1051-1079.
  • Goldin, Claudia. The U-shaped female labor force function in economic development and economic history. No. w4707. National Bureau of Economic Research, 1994.
  • Jayachandran, S. (2014). The roots of gender inequality in developing countries (No. w20380). National Bureau of Economic Research.
  • Alesina, A. F., Giuliano, P., & Nunn, N. (2011). On the origins of gender roles: Women and the plough (No. w17098). National Bureau of economic research.
  • Anderson, S., & Ray, D. (2010). Missing women: age and disease. The Review of Economic Studies, 77(4), 1262-1300.
  • Heath, R., & Mobarak, A. M. (2015). Manufacturing growth and the lives of Bangladeshi women. Journal of Development Economics, 115, 1-15.
  • Jensen, R. (2012). Do Labor Market Opportunities Affect Young Women's Work and Family Decisions? Experimental Evidence from India. The Quarterly Journal of Economics, 127(2), 753-792.
  • Anderson, S. (2007). The economics of dowry and brideprice. The Journal of Economic Perspectives, 21(4), 151-174.
Property Rights
  • Besley, T. 1995. Property Rights and Investment Incentives: Theory and Evidence from Ghana. Journal of Political Economy 103, no. 5: 903-937.
  • Goldstein, M., & Udry, C. (2008). The profits of power: Land rights and agricultural investment in Ghana. Journal of Political Economy, 116(6), 981-1022.
  • Banerjee, A. V., Gertler, P. J., & Ghatak, M. (2002). Empowerment and efficiency: tenancy reform in West Bengal. Journal of Political Economy, 110 (2), 239-280.
  • Beaman, L., Karlan, D., Thuysbaert, B., & Udry, C. (2014). Self-selection into credit markets: Evidence from agriculture in Mali (No. w20387). National Bureau of Economic Research.

6. Course Evaluation & Development

Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.

 

7. Course Schedule

Note: for more information on the UNSW academic calendar and key dates including study period, exam, supplementary exam and result release, please visit: https://student.unsw.edu.au/new-calendar-dates
Week Activity Topic Assessment/Other
Topic 1: Introduction: Correlates and measures of underdevelopment.

Introduction: Correlates and measures of underdevelopment.

Topic 2: Income, poverty, inequality

Income, poverty, inequality

Topic 3: Growth theory

Growth theory

Topic 4: Coordination failure

Coordination failure

Topic 5: History, Institutions, Norms and expectations

History, Institutions, Norms and expectations

Topic 6: Gender and development

Gender and development

Topic 7: Property rights and markets

Property rights and markets

Topic 8: Education, health and labour markets

Education, health and labour markets

8. Policies and Support

Information about UNSW Business School protocols, University policies, student responsibilities and education quality and support.

Program Learning Outcomes

The Business School places knowledge and capabilities at the core of its curriculum via seven Program Learning Outcomes (PLOs). These PLOs are systematically embedded and developed across the duration of all coursework programs in the Business School.

PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each Business School program. They articulate what you should know and be able to do upon successful completion of your degree.

Upon graduation, you should have a high level of specialised business knowledge and capacity for responsible business thinking, underpinned by ethical professional practice. You should be able to harness, manage and communicate business information effectively and work collaboratively with others. You should be an experienced problem-solver and critical thinker, with a global perspective, cultural competence and the potential for innovative leadership.

All UNSW programs and courses are designed to assess the attainment of program and/or course level learning outcomes, as required by the UNSW Assessment Design Procedure. It is important that you become familiar with the Business School PLOs, as they constitute the framework which informs and shapes the components and assessments of the courses within your program of study.

PLO 1: Business knowledge

Students will make informed and effective selection and application of knowledge in a discipline or profession, in the contexts of local and global business.

PLO 2: Problem solving

Students will define and address business problems, and propose effective evidence-based solutions, through the application of rigorous analysis and critical thinking.

PLO 3: Business communication

Students will harness, manage and communicate business information effectively using multiple forms of communication across different channels.

PLO 4: Teamwork

Students will interact and collaborate effectively with others to achieve a common business purpose or fulfil a common business project, and reflect critically on the process and the outcomes.

PLO 5: Responsible business practice

Students will develop and be committed to responsible business thinking and approaches, which are underpinned by ethical professional practice and sustainability considerations.

PLO 6: Global and cultural competence

Students will be aware of business systems in the wider world and actively committed to recognise and respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact, communicate and work effectively in diverse environments.

PLO 7: Leadership development

Students will develop the capacity to take initiative, encourage forward thinking and bring about innovation, while effectively influencing others to achieve desired results.

These PLOs relate to undergraduate and postgraduate coursework programs.  Separate PLOs for honours and postgraduate research programs are included under 'Related Documents'.

Business School course outlines provide detailed information for students on how the course learning outcomes, learning activities, and assessment/s contribute to the development of Program Learning Outcomes.

RELATED DOCUMENTS

 

UNSW Graduate Capabilities

The Business School PLOs also incorporate UNSW graduate capabilities, a set of generic abilities and skills that all students are expected to achieve by graduation. These capabilities articulate the University’s institutional values, as well as future employer expectations.

UNSW Graduate CapabilitiesBusiness School PLOs
Scholars capable of independent and collaborative enquiry, rigorous in their analysis, critique and reflection, and able to innovate by applying their knowledge and skills to the solution of novel as well as routine problems.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 7: Leadership development

Entrepreneurial leaders capable of initiating and embracing innovation and change, as well as engaging and enabling others to contribute to change
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 6: Global and cultural competence
  • PLO 7: Leadership development

Professionals capable of ethical, self-directed practice and independent lifelong learning
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 5: Responsible business practice

Global citizens who are culturally adept and capable of respecting diversity and acting in a socially just and responsible way.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 5: Responsible business practice
  • PLO 6: Global and cultural competence

While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also provide you with a great deal of choice and flexibility.  The Business School strongly advises you to choose a range of courses that assist your development against the seven PLOs and four graduate capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio as evidence in employment applications as well as a reference for work or further study. For support with selecting your courses contact the UNSW Business School Student Centre.




Academic Integrity and Plagiarism

Academic Integrity is honest and responsible scholarship. This form of ethical scholarship is highly valued at UNSW. Terms like Academic Integrity, misconduct, referencing, conventions, plagiarism, academic practices, citations and evidence based learning are all considered basic concepts that successful university students understand. Learning how to communicate original ideas, refer sources, work independently, and report results accurately and honestly are skills that you will be able to carry beyond your studies.

The definition of academic misconduct is broad. It covers practices such as cheating, copying and using another person’s work without appropriate acknowledgement. Incidents of academic misconduct may have serious consequences for students.

Plagiarism

UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct Registers.

Below are examples of plagiarism including self-plagiarism:

Copying: Using the same or very similar words to the original text or idea without acknowledging the source or using quotation marks. This includes copying materials, ideas or concepts from a book, article, report or other written document, presentation, composition, artwork, design, drawing, circuitry, computer program or software, website, internet, other electronic resource, or another person's assignment, without appropriate acknowledgement of authorship.

Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original structure and/or progression of ideas of the original, and information without acknowledgement. This also applies in presentations where someone paraphrases another’s ideas or words without credit and to piecing together quotes and paraphrases into a new whole, without appropriate referencing.

Collusion: Presenting work as independent work when it has been produced in whole or part in collusion with other people. Collusion includes:

  • Students providing their work to another student before the due date, or for the purpose of them plagiarising at any time
  • Paying another person to perform an academic task and passing it off as your own
  • Stealing or acquiring another person’s academic work and copying it
  • Offering to complete another person’s work or seeking payment for completing academic work

Collusion should not be confused with academic collaboration (i.e., shared contribution towards a group task).

Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary' source from which knowledge of them has been obtained.

Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work and presents it as new findings without referencing the earlier work, either in its entirety or partially. Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a body of work that has already been submitted for assessment without proper citation.

To see if you understand plagiarism, do this short quiz: https://student.unsw.edu.au/plagiarism-quiz

Cheating

The University also regards cheating as a form of academic misconduct. Cheating is knowingly submitting the work of others as their own and includes contract cheating (work produced by an external agent or third party that is submitted under the pretences of being a student’s original piece of work). Cheating is not acceptable at UNSW.

If you need to revise or clarify any terms associated with academic integrity you should explore the 'Working with Academic Integrity' self-paced lessons available at: https://student.unsw.edu.au/aim.

For UNSW policies, penalties, and information to help you avoid plagiarism see: https://student.unsw.edu.au/plagiarism as well as the guidelines in the online ELISE tutorials for all new UNSW students: http://subjectguides.library.unsw.edu.au/elise. For information on student conduct see: https://student.unsw.edu.au/conduct.

For information on how to acknowledge your sources and reference correctly, see: https://student.unsw.edu.au/referencing. If you are unsure what referencing style to use in this course, you should ask the lecturer in charge.


Student Responsibilities and Conduct

Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

Information and policies on these topics can be found on the 'Managing your Program' website.

Workload

It is expected that you will spend at least ten to twelve hours per week studying for a course except for Summer Term courses which have a minimum weekly workload of twenty to twenty four hours. This time should be made up of reading, research, working on exercises and problems, online activities and attending classes. In periods where you need to complete assignments or prepare for examinations, the workload may be greater. Over-commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

We strongly encourage you to connect with your Moodle course websites in the first week of semester. Local and international research indicates that students who engage early and often with their course website are more likely to pass their course.

View more information on expected workload

Attendance

Your regular and punctual attendance at lectures and seminars or in online learning activities is expected in this course. The Business School reserves the right to refuse final assessment to those students who attend less than 80% of scheduled classes where attendance and participation is required as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).

View more information on attendance

General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class.

View more information on student conduct

Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others.

View more information on Health and Safety

Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.



Student Support and Resources

The University and the Business School provide a wide range of support services and resources for students, including:

Business School Education Quality and support Unit (EQS)
The EQS offers academic writing, study skills and maths support specifically for Business students. Services include workshops, online resources, and individual consultations.
Level 1, Room 1033, Quadrangle Building.
bschoolconsults@unsw.edu.au
02 9385 7577 or 02 9385 4508

Business School Student Centre
The Business School Student Centre provides advice and direction on all aspects of admission, enrolment and graduation.
Level 1, Room 1028 in the Quadrangle Building
02 9385 3189

UNSW Learning Centre
The UNSW Learning Centre provides academic skills support services, including workshops and resources, for all UNSW students. See their website for details.
Lower Ground Floor, North Wing Chancellery Building.
learningcentre@unsw.edu.au
02 9385 2060

Educational Support Service
Educational Support Advisors work with all students to promote the development of skills needed to succeed at university, whilst also providing personal support throughout the process. Check their website to request an appointment or to register in the Academic Success Program.
John Goodsell Building, Ground Floor.
advisors@unsw.edu.au
02 9385 4734

Library services and facilities for students
The UNSW Library offers a range of collections, services and facilities both on-campus and online.
Main Library, F21.
02 9385 2650

Moodle eLearning Support
Moodle is the University’s learning management system. You should ensure that you log into Moodle regularly.
externalteltsupport@unsw.edu.au
02 9385 3331

UNSW IT
UNSW IT provides support and services for students such as password access, email services, wireless services and technical support.
UNSW Library Annexe (Ground floor).
itservicecentre@unsw.edu.au
02 9385 1333

Disability Support Services
UNSW Disability Support Services provides assistance to students who are trying to manage the demands of university as well as a health condition, learning disability or who have personal circumstances that are having an impact on their studies. Disability Advisers can arrange to put in place services and educational adjustments to make things more manageable so that students are able to complete their course requirements. To receive educational adjustments for disability support, students must first register with Disability Services.
Ground Floor, John Goodsell Building.
disabilities@unsw.edu.au
02 9385 4734

UNSW Counselling and Psychological Services
Provides support and services if you need help with your personal life, getting your academic life back on track or just want to know how to stay safe, including free, confidential counselling.
Level 2, East Wing, Quadrangle Building.
counselling@unsw.edu.au
02 9385 5418


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