Course description: The course introduces the topic of economic development and the role of economic development policy. It starts with the observation of unequal development across countries and the causes for this divergence. As a part of the course, we will learn how to use the framework of growth diagnostics to diagnose the place-specific binding constraints to growth, and how to use the economic complexity framework to analyze countries’ economic development trajectory and potential for future growth. The course covers a range of other economic development topics as well, such as the role of geography, human capital, and technological diffusion in development, industrial policy, and policy implementation.
In addition to theory, the course teaches the practice of growth diagnostics and economic complexity analysis. For this part, the students will learn how to use data and R code to analyze the economic production of countries. Discussions and presentations by students are an integral part of the course.
Course objectives:
1. Understand the drivers of economic development outcomes across the world.
2. Study the tools that economic development practitioners and policy makers have available to impact the direction of development.
3. Learn how to implement place-specific growth diagnostics.
4. Learn how to interpret and conduct economic complexity analysis.
5. Understand the issues around the implementation of public policy.
Prerequisites: While the course has no prerequisites, familiarity with elementary statistics is strongly recommended. Students lacking this background may find the material challenging. Moreover, knowledge of economics (macro and microeconomics) and R programming skills are an asset.
Audience: This course is intended for students that may one day be involved in economic policymaking in governments, international organizations, think thanks, or the private sector. It is taught in a relatively non-technical manner. The course is appropriate for students who want a broad introduction to the themes and issues that are at the center of the policy debate. The theoretical literature will be presented with an emphasis on the conceptual and policy implications. Classes will be a combination of lectures, discussions, presentations by students, workshops and method sessions.
Students will be expected to have done the readings before each class, and to come to class prepared.
Requirements and evaluation
Homework 1 10%
Homework 2 10%
Homework 3 10%
Homework 4 10%
Class participation 10%
Mid-term exam 20%
Final Exam 30%
Workload
The workload for the course is spread across three elements. First, all students are expected to attend the lectures regularly, show up on time and stay until the end of the class. The 10 points for class participation are based on activity during lectures and are not given for attendance only. Second, students are expected to study the materials covered in class continuously, and the homework and mid-term exam are designed to help students achieve this. Third, students are expected to spend a substantial amount of time studying for the final exam. Overall, students should count on spending about 120 hours on this course:
· Class attendance/participation: 24 hours
· Class preparation (readings, homework): 50 hours
· Exams: 45 hours
- Instructor: Ljubica Nedelkoska