Syllabus 1.0, Winter Semester 2020-2021 INTR5020 Political Economy of Development
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Political Economy of Development
Winter Semester, AY2020-2021
Syllabus 1.0, Winter Semester 2020-2021
INTR5020 Political Economy of Development
Instructor: Andrew X. Li
Email: LiX@ceu.edu
Class Hours: Tuesday, 13:30-15:10, CET (Venue)
Thursday, 13:30-15:10, CET (Venue)
Office Hours: by appointment (telecommute by default)
Course Description:
This course is a graduate-level seminar that introduces students to contemporary research on
the political economy of development. The course takes an interdisciplinary approach and
examines readings from both economics and political science. The materials cover the
following three components: i) the theoretical debates on the determinants and mechanisms
of growth and development; ii) research designs and methods such as experiments and
instrumental variable regressions used to empirically evaluate the effects of various factors on
the development outcome, and iii) country cases that either support or challenge the existing
development theories. At the end of the course, students will have a general understanding of
the political and economic factors behind the uneven patterns of economic, political, social
and human development cross countries and over time, as well as the methodological tools
that are commonly used to assess the impacts of these factors.
The primary mode of instruction for this course is sectional teaching, which combines lectures
with student presentations and discussions. The lectures equip students with the basic
theoretical knowledge and methodological tools to be able to read contemporary development
literature. Student presentations delve deeper into the literature and country cases to identify
possible directions in which the existing scholarship can be advanced. The aim of the course
is to equip students with necessary knowledge and skills to conduct independent research
and build on the current state of knowledge in the field and in doing so, promote research on
development from a political economy perspective.
This course has no formal prerequisites. Some background in macroeconomics, international
political economy and/or research methodology can be an advantage but is not required or
assumed in this course.
Main Texts:
The following books are the main texts for this course:
• Todaro, Michael P. and Stephen C. Smith. Economic Development. Boston: Pearson,
2015. (12th Edition)
• Meier, Gerald M., and James E. Rauch. Leading Issues in Economic Development.
New York: Oxford University Press, 2005. (8th Edition)
Requirements:
1. Participation and presentation (30%): students are required to participate actively in class
and give two paper presentations throughout the semester. Each paper presentation
should take 20-25 minutes. The presenter is expected to answer questions from the
audience. Paper presentations start in Week 3 and last until the end of the course.
2. Comment papers (40%): Between Week 3 to 12, each student will submit two comment
papers on the readings of a session (not week) of his/her own choosing. These sessions
may be the same sessions in which the student is assigned to present papers. The
comment paper should be 1000 words in length (including footnotes/endnotes and in-text
citations) and provide i) a succinct summary of the research question, methodology, and
Page 1 of 10Political Economy of Development
Winter Semester, AY2020-2021
major findings of the readings; ii) an analytical review that identifies their strengths and
weaknesses of the readings; and iii) possible research questions that follow from the
commentary. The paper should be submitted by noon of the day of class. To spread the
work evenly across the semester, the first comment paper must be submitted for Week 3-
7 and the second can be submitted for any other week. Students will receive more detailed
comments on their first comment paper and only a score without comments for the second
paper.
3. For this assignment, students will have a choice between Option A and Option B:
Option A: Thesis Proposal (30%): Students whose (intended) thesis topics are related to
development (broadly defined) may submit a written thesis proposal. The proposal should
contain five components: i) research question and motivation; 2) a critical review of
relevant literature; 3) theory/argument and hypothesis; 4) description of data and
methodology; 5) discussion on the potential limitations of theory and empirical strategy.
The proposal is expected to be 2000-2500 words in length and is due on April 9th, 2020
at 23:59 (Vienna local time).
Option B: Mock Job/Internship Application (30%): Alternatively, students may submit a
mock job/internship application. For this option, each student will find a real job/internship
advertisement (current or past) related to development (broadly defined) and produce the
documents that require direct inputs from applicants. The “application set” should contain
five documents: i) the job/internship advertisement itself including the source (an English
translation is required if the original advertisement is not in English); ii) a cover letter (500
words); iii) a CV following professional format (2-3 pages); iv) a personal statement that
shows your background, qualification, knowledge and skills that may be required to
perform the job (1000 words); v) any other document(s) specified in the advertisement,
such as list of referees and short questionnaires. Documents that require third-party inputs
such as recommendation letters and transcripts are NOT required for this assignment. In
addition, please DO NOT submit any documents that contain personal data or sensitive
information such as personal particular forms and passport copies. Such documents
should be omitted from your “application set” even if they are specified in the
advertisement. All the documents should be combined into a single file in Word of PDF
format, which is due on April 9th, 2020 at 23:59 (Vienna local time).
Penalty for late work: 1 percentage point of overall grade per calendar day
Note on submission: submission of assignments should only be done through Moodle
electronically. Submissions via email or in paper format will not be accepted. Students are
required to safely save a personal copy of all the files submitted to Moodle and may be asked
by the instructor to resubmit or reproduce parts of the assignment after the initial submission.
Failure to comply may result in a zero grade for that assignment.
Grading Scales (for reference only)
Letter Grade Numerical Grade (%) GPA
A >93% 4.00
A- 90%-92.99% 3.67
B+ 87%-89.99% 3.33
B 83%-86.99% 3.00
B- 80%-82.99% 2.67
C+ 60%-79.99% 2.33
F 0%-59.99% 0.00
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Winter Semester, AY2020-2021
Course Schedule
Week 1: Introduction and Overview
Session 1 (Jan 12th, 2021): What Is Development?
- This syllabus
- Todaro and Smith (2015), Chapter 1: 2-29 **
Session 2 (Jan 14th, 2021): Facts, Trends and Indicators of Development
- Todaro and Smith (2015), Chapter 2: 40-95 **
- Rodrik, Dani. "The Past, Present, and Future of Economic Growth." Challenge 57.3 (2014):
5-39. **
Week 2: Theories and Methods
Session 1 (Jan 19th, 2021): Theories of Development and Underdevelopment
- Todaro and Smith (2015), Chapter 3-4: 118-199 **
- Cardoso, Fernando Henrique, and Enzo Faletto. Dependency and Development in Latin
America. Berkeley and Los Angeles: University of California Press, 1979. Chapter 2: 8-28. **
Session 2 (Jan 21st, 2021): Instrumental Variable Methods and Experiments
- Deaton, Angus. "Instruments, Randomization, and Learning about Development." Journal of
Economic Literature 48.2 (2010): 424-455. **
- Banerjee, Abhijit V., and Esther Duflo. "The Experimental Approach to Development
Economics." Annual Review of Economics 1.1 (2009): 151-178. **
- Humphreys, Macartan, and Jeremy M. Weinstein. "Field Experiments and the Political
Economy of Development." Annual Review of Political Science 12 (2009): 367-378. **
- Angrist, Joshua D., and Alan B. Krueger. "Instrumental Variables and the Search for
Identification: From Supply and Demand to Natural Experiments." The Journal of Economic
Perspectives 15.4 (2001): 69-85.
- Acemoglu, Daron. "Theory, General Equilibrium, and Political Economy in Development
Economics." The Journal of Economic Perspectives 24.3 (2010): 17-32.
Week 3: Political Institutions and Development
Session 1 (Jan 26th, 2020): Do Democratic Institutions Promote Development?
- Acemogolu, Daron, Simon Johnson, and James A. Robinson. "The Colonial Origins of
Comparative Development: An Empirical Investigation." American Economic Review 91.5
(2001): 1369-1401. **
- Acemoglu, Daron, Simon Johnson, and James A. Robinson. "Reversal of Fortune:
Geography and Institutions in the Making of the Modern World Income Distribution." The
Quarterly Journal of Economics 117.4 (2002): 1231-1294. **
- Acemoglu, Daron, Suresh Naidu, Pascual Restrepo, and James A. Robinson. "Democracy
Does Cause Growth." Journal of Political Economy 127.1 (2019): 47-100.
- Rodrik, Dani, Arvind Subramanian, and Francesco Trebbi. "Institutions Rule: The Primacy of
Institutions over Geography and Integration in Economic Development." Journal of Economic
Growth 9.2 (2004): 131-165.
- Lin, Justin Yifu. "The Needham Puzzle: Why the Industrial Revolution Did Not Originate in
China." Economic Development and Cultural Change 43.2 (1995): 269-292. ##1
- Banerjee, Abhijit, and Lakshmi Iyer. "History, Institutions, and Economic Performance: The
Legacy of Colonial Land Tenure Systems in India." American Economic Review 95.4 (2005):
1190-1213.
- Ross, Michael. "Is Democracy Good for the Poor?" American Journal of Political Science 50.
4 (2006): 860-874.
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Winter Semester, AY2020-2021
- Chandra, Siddharth, and Nita Rudra. "Reassessing the Links between Regime Type and
Economic Performance: Why Some Authoritarian Regimes Show Stable Growth and Others
Do Not." British Journal of Political Science 45.2 (2013): 253-285.
Session 2 (Jan 28th, 2020): Does Economic Development Lead to Democratization?
- Acemoglu, Daron, and James A. Robinson. Economic Origins of Dictatorship and
Democracy. Cambridge University Press, 2005. Chapter 2: 15-47. **
- Przeworski, Adam, and Fernando Limongi. "Modernization: Theories and Facts." World
Politics 49.2 (1997): 155-183. **
- Acemoglu, Daron, Simon Johnson, James A. Robinson, and Pierre Yared. "Income and
Democracy." American Economic Review 98.3 (2008): 808-842.
- Brückner, Markus, and Antonio Ciccone. "Rain and the Democratic Window of
Opportunity." Econometrica 79.3 (2011): 923-947. ##2
- Papaioannou, Elias, and Gregorios Siourounis. "Economic and Social Factors Driving the
Third Wave of Democratization." Journal of Comparative Economics 36.3 (2008): 365-387.
- Lipset, Seymour Martin. "Some Social Requisites of Democracy: Economic Development and
Political Legitimacy." American Political Science Review 53.1 (1959): 69-105.
- Kurtz, Marcus J. "The Dilemmas of Democracy in the Open Economy: Lessons from Latin
America." World Politics 56.2 (2004): 262-302.
- Chen, An. "Capitalist Development, Entrepreneurial Class, and Democratization in China."
Political Science Quarterly 117.3 (2002): 401-422.
Week 4: Corruption and Development
Session 1 (Feb 2nd, 2021): Theories of Corruption
- Svensson, Jakob. "Eight Questions about Corruption." Journal of Economic Perspectives
19.3 (2005): 19-42. **
- Olken, Benjamin A., and Rohini Pande. "Corruption in Developing Countries." Annual Review
of Economics. 4.1 (2012): 479-509. **
- Acemoglu, Daron, and Thierry Verdier. "The Choice Between Market Failures and
Corruption." American Economic Review 90.1 (2000): 194-211.
- Chang, Eric C. C., and Miriam A. Golden. "Electoral Systems, District Magnitude and
Corruption." British Journal of Political Science 37.1 (2006): 115-137.
- Gorodnichenko, Yuriy, and Klara Sabirianova Peter. "Public Sector Pay and Corruption:
Measuring Bribery from Micro Data." Journal of Public Economics 91.5-6 (2007): 963-991.
- Lederman, Daniel, Norman V. Loayza, and Rodrigo R. Soares. "Accountability and
Corruption: Political Institutions Matter." Economics & Politics 17.1 (2005): 1-35.
- Kunicova, Jana, and Susan Rose-Ackerman. "Electoral Rules and Constitutional Structures
as Constraints on Corruption." British Journal of Political Science 35.4 (2005): 573-606.
- Olken, Benjamin A. "Monitoring Corruption: Evidence from a Field Experiment in
Indonesia." Journal of Political Economy 115.2 (2007): 200-249.
- Tavits, Margit. "Clarity of Responsibility and Corruption." American Journal of Political
Science 51.1 (2007): 218-229. ##3
Session 2 (Feb 4th, 2021): Effects of Corruption on Income and Growth
- Shleifer, Andrei, and Robert W. Vishny. "Corruption." The Quarterly Journal of Economics
108.3 (1993): 599-617. **
- Bardhan, Pranab. "Corruption and Development: A Review of Issues." Journal of Economic
Literature 35.3 (1997): 1320-1346. **
- Mauro, Paolo. "Corruption and Growth." The Quarterly Journal of Economics 110.3 (1995):
681-712.
- Winters, Matthew S. "Accountability, Participation and Foreign Aid Effectiveness."
International Studies Review 12.2 (2010): 218-243.
- Aidt, Toke S. "Corruption, Institutions, and Economic Development." Oxford Review of
Economic Policy 25.2 (2009): 271-291. ##4
- Méndez, Fabio, and Facundo Sepúlveda. "Corruption, Growth and Political Regimes: Cross
Country Evidence." European Journal of Political Economy 22.1 (2006): 82-98.
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Winter Semester, AY2020-2021
- Wedeman, Andrew. "Development and Corruption: The East Asian Paradox." In Edmund T.
Gomez (ed) Political Business in East Asia, London: Routledge (2002), Chapter 1: 34-61.
- Wang, Yuanyuan, and Jing You. "Corruption and Firm Growth: Evidence from China." China
Economic Review 23.2 (2012): 415-433.
- Wang, Yuan. "Growth and Development under Different Corruption Regimes." The
Manchester School 88.2 (2020): 305-323.
Week 5: The Role of the State in Economic Development
Session 1 (Feb 9th, 2021): State Capacities and Incapacities
- Meier and Rauch (2005). Chapter IX.A.1, IX.C.2, IX.C.4: 494-501, 541-559, 573-580. **
- Herbst, Jeffrey. States and Power in Africa: Comparative Lessons in Authority and Control.
Princeton University Press, 2000. Chapter 1: 11-31 **
- Evans, Peter B. Embedded Autonomy: States and Industrial Transformation. Princeton
University Press, 1995. Chapter 1-2: 3-42.
- Migdal, Joel S. Strong Societies and Weak States: State-Society Relations and State
Capabilities in the Third World. Princeton University Press, 1988. Chapter 1: 10-41.
- Acemoglu, Daron, Camilo Garcia-Jimeno, and James A. Robinson. "State Capacity and
Economic Development: A Network Approach." American Economic Review 105.8 (2015):
2364-2409.
- Kurtz, Marcus J. Latin American State Building in Comparative Perspective: Social
Foundations of Institutional Order. Cambridge University Press, 2013. Chapter 2: 18-65.
- Besley, Timothy, and Torsten Persson. "The Origins of State Capacity: Property Rights,
Taxation, and Politics." American Economic Review 99.4 (2009): 1218-1244.
- Hanson, Jonathan K. "Democracy and State Capacity: Complements or Substitutes?"
Studies in Comparative International Development 50.3 (2015): 304-330. ##5
Session 2 (Feb 11th, 2021): State and Industrialization
- Todaro and Smith (2015), Chapter 11: 541-597. **
- Gerschenkron, Alexander. Economic Backwardness in Historical Perspective: A Book of
Essays. Cambridge, MA: The Belknap Press of Harvard University Press, 1962. Introduction:
1-30. **
- Wade, Robert. Governing the Market: Economic Theory and the Role of Government in East
Asian Industrialization. Princeton University Press, 1990. Chapter 1: 3-33. **
- Waldner, David. State Building and Late Development. Cornell University Press, 1999.
Chpater 1: 1-18. ##6
- Acemoglu, Daron, and James A. Robinson. "Economic Backwardness in Political
Perspective." American Political Science Review 100.1 (2006): 115-131.
- Kohli, Atul. State-directed Development: Political Power and Industrialization in the Global
Periphery. Cambridge University Press, 2004. Introduction: 1-24.
- Zhu, Tianbiao. "Developmental States and Threat Perceptions in Northeast Asia." Conflict,
Security & Development 2.1 (2002): 5-29.
- Besley, Timothy, and Torsten Persson. "State Capacity, Conflict, and Development."
Econometrica 78.1 (2010): 1-34.
Week 6: Income Inequality, Redistribution and Development
Session 1 (Feb 16th, 2021): Income Inequality and Development
- Todaro and Smith (2015), Chapter 5: 216-283. **
- Acemoglu, Daron, Suresh Naidu, Pascual Restrepo, and James A. Robinson. "Democracy,
Redistribution, and Inequality." In (Anthony B. Atkinson and Francois Bourguignon
eds.) Handbook of Income Distribution, vol. 2B, Elsevier, 2015. Chapter 21: 1885-1966. **
- Barro, Robert J. "Inequality and Growth in a Panel of Countries." Journal of Economic
Growth 5.1 (2000): 5-32.
- Deininger, Klaus, and Lyn Squire. "New Ways of Looking at Old Issues: Inequality and
Growth." Journal of Development Economics 57.2 (1998): 259-287.
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Winter Semester, AY2020-2021
- Forbes, Kristin J. "A Reassessment of the Relationship between Inequality and
Growth." American Economic Review 90.4 (2000): 869-887.
- Acemoglu, Daron, and James A. Robinson. "Why Did the West Extend the Franchise?
Democracy, Inequality, and Growth in Historical Perspective." The Quarterly Journal of
Economics 115.4 (2000): 1167-1199.
- Dorsch, Michael T. and Paul Maarek. "Democratization and the Conditional Dynamics of
Income Distribution." American Political Science Review 113.2 (2019): 385-404. ##7
Session 2 (Feb 18th, 2021): The Politics of Redistribution and Welfare States
- Burgoon, Brian. "Globalization and Welfare Compensation: Disentangling the Ties that
Bind." International Organization 55.3 (2001): 509-551. **
- Rudra, Nita. "Globalization and the Decline of the Welfare State in Less-developed
Countries." International Organization 56.2 (2002): 411-445. **
- Tang, Kwong-Leung. Social Welfare Development in East Asia. Springer, 2000. Chapter 1-
2: 1-37.
- Alesina, Alberto, Edward Glaeser, and Bruce Sacerdote, B. "Why Doesn’t the United States
Have a European-style Welfare State?". Brookings Papers on Economic Activity 2001.2
(2001): 187-277.
- Rudra, Nita. "Welfare States in Developing Countries: Unique or Universal?" The Journal of
Politics 69.2 (2007): 378-396.
- Nooruddin, Irfan, and Nita Rudra. "Are Developing Countries Really Defying the Embedded
Liberalism Compact?" World Politics 66.4 (2014): 603-640. ##8
- Bastiaens, Ida, and Nita Rudra. Democracies in Peril: Taxation and Redistribution in
Globalizing Economies. New York: Cambridge University Press, 2018. Chapter 1-3: 11-57.
- Brooks, Sarah M. "Social Protection for the Poorest: The Adoption of Antipoverty Cash
Transfer Programs in the Global South." Politics & Society 43.4 (2015): 551-582.
Week 7: International Trade, Financial Market and Development
Session 1 (Feb 23rd, 2021): International Trade, Export Sophistication and Growth
- Todaro and Smith (2015), Chapter 12: 600-677 **
- Hausmann, Ricardo, Jason Hwang, and Dani Rodrik. "What You Export Matters." Journal of
Economic Growth 12.1 (2007): 1-25. **
- Wade, Robert Hunter. "What Strategies Are Viable for Developing Countries Today? The
World Trade Organization and the Shrinking of ‘Development Space’." Review of
International Political Economy 10.4 (2003): 621-644.
- Melitz, Marc J. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry
Productivity." Econometrica 71.6 (2003): 1695-1725.
- Easterly, William, and Aart Kraay. "Small States, Small Problems? Income, Growth, and
Volatility in Small States." World Development 28.11 (2000): 2013-2027.
- Rodrik, Dani. "What's So Special about China's Exports?" China & World Economy 14.5
(2006): 1-19. ##9
- Weldemicael, Ermias. "Technology, Trade Costs and Export Sophistication." The World
Economy 37.1 (2014): 14-41.
- Li, Andrew X. "State-Society Synergy and Export Sophistication." Economics & Politics 27.3
(2015): 433-458.
Session 2 (Feb 25th, 2021): Financial Market, Microfinance and Development
- Todaro and Smith (2015), Chapter 15: 781-825. **
- Meier and Rauch (2005). Chapter V.2: 303-307. **
- Levine, Ross. "Financial Development and Economic Growth: Views and Agenda." Journal
of Economic Literature 35.2 (1997): 688-726. **
- Levine, Ross, and Sara Zervos. "Stock Markets, Banks, and Economic Growth." American
Economic Review 88.3 (1998): 537-558.
- Morduch, Jonathan. "The Microfinance Schism." World Development 28. 4 (2000): 617-629.
- King, Robert G., and Ross Levine. "Finance and Growth: Schumpeter Might be Right." The
Quarterly Journal of Economics 108.3 (1993): 717-737.
Page 6 of 10Political Economy of Development
Winter Semester, AY2020-2021
- Demetriades, Panicos O., and Khaled A. Hussein. "Does Financial Development Cause
Economic Growth? Time-series Evidence from 16 Countries." Journal of Development
Economics 51.2 (1996): 387-411.
- De Gregorio, Jose, and Pablo E. Guidotti. "Financial Development and Economic Growth."
World Development 23.3 (1995): 433-448.
- Roubini, Nouriel, and Xavier Sala-i-Martin. "Financial Repression and Economic Growth."
Journal of Development Economics 39.1 (1992): 5-30.
- Hsu, Po-Hsuan, Xuan Tian, and Yan Xu. "Financial Development and Innovation: Cross-
country Evidence." Journal of Financial Economics 112.1 (2014): 116-135.
- Fink, Gerhard, Peter Haiss, and Goran Vukšić. "Contribution of Financial Market Segments
at Different Stages of Development: Transition, Cohesion and Mature Economies
Compared." Journal of Financial Stability 5.4 (2009): 431-455. ##10
Week 8: Natural Resources and Development
Session 1 (Mar 2nd, 2021): Natural Resource and Economic Growth
- Ross, Michael L. "The Political Economy of the Resource Curse." World Politics 51.2 (1999):
297-322. **
- Brückner, Markus. "Natural Resource Dependence, Non-tradables, and Economic Growth."
Journal of Comparative Economics 38.4 (2010): 461-471. **
- Andersen, Jørgen Juel, and Silje Aslaksen. "Constitutions and the Resource Curse." Journal
of Development Economics 87.2 (2008): 227-246. ##11
- Robinson, James A., Ragnar Torvik, and Thierry Verdier. "Political Foundations of the
Resource Curse." Journal of Development Economics 79.2 (2006): 447-468.
- Gylfason, Thorvaldur, and Gylfi Zoega. "Natural Resources and Economic Growth: The Role
of Investment." The World Economy 29.8 (2006): 1091-1115.
- Isham, Jonathan, Michael Woolcock, Lant Pritchett, and Gwen Busby. "The Varieties of
Resource Experience: Natural Resource, Export Structures and the Political Economy of
Economic Growth." The World Bank Economic Review 19.2 (2005): 141-174.
- Bunte, Jonas B., Harsh Desai, Kanio Gbala, Bradley Parks, and Daniel Miller Runfola.
"Natural Resource Sector FDI, Government Policy, and Economic Growth: Quasi-
Experimental Evidence from Liberia." World Development 107 (2018): 151-162.
- Cassidy, Traviss. "The Long-Run Effects of Oil Wealth on Development: Evidence from
Petroleum Geology." The Economic Journal 129.10 (2019): 2745-2778.
Session 2 (Mar 4th, 2021): Natural Resource, Political Institutions and Conflict
- Ross, Michael L. "Does Oil Hinder Democracy?" World Politics 53.3 (2001): 325-361. **
- Ross, Michael L. "What Have We Learned about the Resource Curse?" Annual Review of
Political Science 18 (2015): 239-259. **
- Tsui, Kevin K. "More Oil, Less Democracy: Evidence from Worldwide Crude Oil Discoveries."
The Economic Journal 121 (2011): 89-115. ##12
- Ross, Michael L. "What Do We Know about Natural Resources and Civil War?" Journal of
Peace Research 41.3 (2004): 337-356.
- Hinkkainen Elliott, Kaisa, and Joakim Kreutz. "Natural Resource Wars in the Shadow of the
Future: Explaining Spatial Dynamics of Violence During Civil War." Journal of Peace
Research 56.4 (2019): 499-513.
- Ross, Michael L. "Oil, Islam, and Women." American Political Science Review 102.1 (2008):
107-123. ##13
Week 9: Foreign Aid and Development
Session 1 (Mar 9th, 2021): Economic and Political Impacts of Foreign Aid
- Todaro and Smith (2015), Chapter 14: 731-780. **
- Meier and Rauch (2005). Chapter V.4: 315-319. **
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Winter Semester, AY2020-2021
- Sumner, Andy, and Jonathan Glennie. "Growth, Poverty and Development Assistance: When
Does Foreign Aid Work?" Global Policy 6.3 (2015): 201-211. **
- Easterly, William. "Can Foreign Aid Buy Growth?" The Journal of Economic Perspectives
17.3 (2003): 23-48.
- Burnside, Craig, and David Dollar. "Aid, Policies, and Growth." American Economic Review
(2000): 847-868.
- Przeworski, Adam, and James Raymond Vreeland. "The Effect of IMF Programs on
Economic Growth." Journal of Development Economics 62.2 (2000): 385-421.
- Djankov, Simeon, Jose G. Montalvo, and Marta Reynal-Querol. "The Curse of Aid." Journal
of Economic Growth 13.3 (2008): 169-194. ##14
- Svensson, Jakob. "Foreign Aid and Rent-seeking." Journal of International Economics 51.2
(2000): 437-461.
- Casper, Brett A. "IMF Programs and the Risk of a Coup d’état." Journal of Conflict
Resolution 61.5 (2017): 964-996.
- De Juan, Alexander, Kristóf Gosztonyi, and Jan Koehler. "Conditional Effects of Development
Aid on Political Perceptions: Mixed-methods Evidence from North-East Afghanistan."
European Journal of International Relations 26.3 (2020): 793-819.
Session 2 (Mar 11th, 2021): The Politics of IMF/World Bank Conditionality & Programs
- Temple, Jonathan RW. "Aid and Conditionality." In Handbook of Development Economics.
Vol. 5. Elsevier, 2010. 4415-4523. **
- Dreher, Axel, Jan-Egbert Sturm, and James Raymond Vreeland. "Politics and IMF
Conditionality." Journal of Conflict Resolution 59.1 (2015): 120-148. **
- Abouharb, M. Rodwan, and David L. Cingranelli. "The Human Rights Effects of World Bank
Structural Adjustment, 1981–2000." International Studies Quarterly 50.2 (2006): 233-262.
- Caraway, Teri L., Stephanie J. Rickard, and Mark S. Anner. "International Negotiations and
Domestic Politics: The Case of IMF Labor Market Conditionality." International Organization
66.1 (2012): 27-61. ##15
- Stone, Randall W. "The Political Economy of IMF Lending in Africa." American Political
Science Review 98.4 (2004): 577-591.
- Dreher, Axel, Andreas Fuchs, Brad Parks, Austin M. Strange, and Michael J. Tierney. "Apples
and Dragon Fruits: The Determinants of Aid and Other Forms of State Financing from China
to Africa." International Studies Quarterly 62.1 (2018): 182-194.
- Winters, Matthew S. "Choosing to Target: What Types of Countries Get Different Types of
World Bank Projects." World Politics 62.3 (2010): 422-458. ##16
Week 10: Migrant Remittances and Development
Session 1 (Mar 16th, 2021): Remittances and Growth
- De Haas, Hein. "International Migration, Remittances and Development: Myths and Facts."
Third World Quarterly 26.8 (2005): 1269-1284. **
- Yang, Dean. "Migrant Remittances." Journal of Economic Perspectives 25.3 (2011): 129-
152. **
- Lartey, Emmanuel K. K, Federico S. Mandelman, and Pablo A. Acosta. "Remittances,
Exchange Rate Regimes and the Dutch Disease: A Panel Data Analysis." Review of
International Economics 20.2 (2012): 377-395.
- Magud, Nicolás, and Sebastián Sosa. "When and Why Worry about Real Exchange Rate
Appreciation? The Missing Link between Dutch Disease and Growth." Journal of International
Commerce, Economics and Policy 4.2 (2013): 1350009 1-27.
- Page, John, and Sonia Plaza. "Migration Remittances and Development: A Review of Global
Evidence" Journal of African Economies 15. suppl_2 (2006): 245-336.
- Gupta, Sanjeev, Catherine A. Pattillo, and Smita Wagh. "Effect of Remittances on Poverty
and Financial Development in Sub-Saharan Africa." World Development 37.1 (2009): 104-
115.
- Adams, Richard H., and John Page. "Do International Migration and Remittances Reduce
Poverty in Developing Countries?" World Development 33.10 (2005): 1645-1669.
Page 8 of 10Political Economy of Development
Winter Semester, AY2020-2021
- Yang, Dean. "International Migration, Remittances and Household Investment: Evidence
from Philippine Migrants’ Exchange Rate Shocks." The Economic Journal 118 (2008): 591-
630.
- Yang, Dean, and Hwa Jung Choi. "Are Remittances Insurance? Evidence from Rainfall
Shocks in the Philippines." The World Bank Economic Review 21.2 (2007): 219-248. ##17
Session 2 (Mar 18th, 2021): Remittances and Political and Human Development
- Ahmed, Faisal Z. "The Perils of Unearned Foreign Income: Aid, Remittances, and
Government Survival." American Political Science Review 106.1 (2012): 146-165.
- Tyburski, Michael D. "The Resource Curse Reversed? Remittances and Corruption in
Mexico." International Studies Quarterly 56.2 (2012): 339-350.
- Escriba-Folch, Abel, Covadonga Meseguer, and Joseph Wright. "Remittances and
Democratization." International Studies Quarterly 59.3 (2015): 571-586. ##18
- Doyle, David. "Remittances and Social Spending." American Political Science Review 109.4
(2015): 785-802. ##19
- Amuedo-Dorantes, Catalina, and Susan Pozo. "Migration, Remittances, and Male and
Female Employment Patterns." American Economic Review 96.2 (2006): 222-226.
- Bansak, Cynthia, and Brian Chezum. "How do Remittances Affect Human Capital Formation
of School-age Boys and Girls?" American Economic Review 99.2 (2009): 145-148.
Week 11: International Migration, Cultural Diversity and Development
Session 1 (Mar 23rd, 2021): International Migration and Development
- Borjas, George J. Immigration Economics. Cambridge: Harvard University Press, 2014.
Chapter 7: 149-169. **
- Freeman, Richard B. "People Flows in Globalization." The Journal of Economic Perspectives
20.2 (2006): 145-170. **
- Hanson, Gordon H. "Immigration and Economic Growth." Cato Journal. 32.1 (2012): 25-34.
- Lundborg, Per, and Paul S. Segerstrom. "International Migration and Growth in Developed
Countries: A Theoretical Analysis." Economica 67.268 (2000): 579-604.
- Docquier, Frédéric, and Hillel Rapoport. "Globalization, Brain Drain, and Development."
Journal of Economic Literature 50.3 (2012): 681-730. ##20
- Chen, Hung-Ju. "International Migration and Economic Growth: A Source Country
Perspective." Journal of Population Economics 19.4 (2006): 725-748.
- Beine, Michel, Frederic Docquier, and Hillel Rapoport. "Brain Drain and Human Capital
Formation in Developing Countries: Winners and Losers." The Economic Journal 118.528
(2008): 631-652.
- Ruhs, Martin. "Migrant Rights, Immigration Policy and Human Development." Journal of
Human Development and Capabilities 11.2 (2010): 259-279.
Session 2 (Mar 25th, 2021): Cultural Diversity, Ethnic Division and Growth
- Borjas, George J. Immigration Economics. Harvard University Press, 2014. Chapter 9: 192-
211. **
- Alesina, Alberto and Eliana La Ferrara. "Ethnic Diversity and Economic Performance."
Journal of Economic Literature 43.3 (2005): 762-800. **
- Easterly, William, and Ross Levine. "Africa's Growth Tragedy: Policies and Ethnic
Divisions." The Quarterly Journal of Economics 112.4 (1997): 1203-1250.
- Ager, Philipp, and Markus Brückner. "Cultural Diversity and Economic Growth: Evidence from
the US During the Age of Mass Migration." European Economic Review 64 (2013): 76-97.
##21
- Habyarimana, James, Macartan Humphreys, Daniel N. Posner, and Jeremy M. Weinstein.
"Why Does Ethnic Diversity Undermine Public Goods Provision?" American Political Science
Review 101.4 (2007): 709-725. ##22
- Reynal-Querol, Marta, and Jose G. Montalvo. "Ethnic Polarization, Potential Conflict and Civil
War." American Economic Review 95.3 (2005): 796-816.
Page 9 of 10Political Economy of Development
Winter Semester, AY2020-2021
- Alesina, Alberto, William Easterly, and Janina Matuszeski. "Artificial States." Journal of the
European Economic Association 9.2 (2011): 246-277.
Week 12: Environment, Disease and Development
Session 1 (Mar 30th, 2021): Environment and Growth
- Todaro and Smith (2015), Chapter 10: 490-540. **
- Meier and Rauch (2005). Chapter X.1: 588-598. **
- Bloom, David E., Jeffrey D. Sachs, Paul Collier, and Christopher Udry. "Geography,
Demography, and Economic Growth in Africa." Brookings Papers on Economic
Activity 1998.2 (1998): 207-295.
- Dell, Melissa, Benjamin F. Jones, and Benjamin A. Olken. "Temperature Shocks and
Economic Growth: Evidence from the Last Half Century." American Economic Journal:
Macroeconomics 4.3 (2012): 66-95. ##23
- Sachs, Jeffrey D., and Andrew M. Warner. "Sources of Slow Growth in African Economies."
Journal of African Economies 6.3 (1997): 335-376.
Session 2 (Apr 1st, 2021): Disease and Development
- Acemoglu, Daron, and Simon Johnson. "Disease and Development: The Effect of Life
Expectancy on Economic Growth." Journal of Political Economy 115.6 (2007): 925-985. **
- Deaton, Angus. "Health, Inequality, and Economic Development." Journal of Economic
Literature 41.1 (2003): 113-158. **
- Ghobarah, Hazem Adam, Paul Huth, and Bruce Russett. "Comparative Public Health: The
Political Economy of Human Misery and Well-being." International Studies Quarterly 48.1
(2004): 73-94. ##24
- Oster, Emily. "Routes of Infection: Exports and HIV Incidence in Sub-Saharan Africa." Journal
of the European Economic Association 10.5 (2012): 1025-1058.
- Young, Alwyn. "The Gift of the Dying: The Tragedy of AIDS and the Welfare of Future African
Generations." The Quarterly Journal of Economics 120.2 (2005): 423-466. ##25
- De Waal, Alex. "How Will HIV/AIDS Transform African Governance?" African Affairs 102.406
(2003): 1-23.
- Fernandes, Nuno, Economic Effects of Coronavirus Outbreak (COVID-19) on the World
Economy (2020). Unpublished manuscript, https://dx.doi.org/10.2139/ssrn.3557504
Notes:
1. Readings marked by ** are compulsory readings.
2. Readings marked by ##x are available for student presentation (will be updated at the end
of the first week of the Winter Semester depending on enrolment).
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