Course Title: Development Economics I

Course Code: Econ 3071

Course Description
The Course is to provide a brief overview of the development and underdevelopment of
nations and outstanding development theories. It explores the principles, concepts and
theories of that have been developed and applied by economists for the study of the problems
of developing nations. In addition, it examines recent developments in theories of growth
and transformation in the context of developing economies and concentrates on key areas of
concern to those responsible for development policy.

Course Objective
Understand how to formulate, test and measure economic models to undertake /conduct
research. Acquire the fundamental developmental concepts to understand contemporary
economic problems of developing countries.

Lectu Lecture Topics

re
hours
1. Economics of Development: Concepts and Approaches
1.1 Basic concepts and definition of
development economics
1.2 The Scope and Nature of Development Economics
1.3 Interests in and Evolution of Development
Economics
1.4 Economic Growth and Economic Development
1.5 Three core values of Development
1.6 Measurement and international comparison of
growth and development.

1.6.1. Conventional Measures of Development and their

9 hours Limitations
1.6.2. Alternative measures of level of development
 Physical Quality of Life Index,
 Human Development Index
 Human poverty Index
1.7 Obstacles to Development and Basic Requirements
for Development
1.8 Development Gap
1.9 From MDGs to SDGs and Africa Agenda 2063
2. Structural features and common characteristics of developing
countries
6
2.1 An Over View of the Diverse Structure of
hours
Developing Countries
2.2 Common Characteristics of Developing Countries
3. Growth Models and Theories of development
12 3.1 Facts of economic growth and why growth rates
hours differ across countries
3.2 Factors of Economic growth

Course instructor: Kahsay H. Phone no. 0914618644

 3.3. Models and theories of economic growth and
development
3.3.1. Linear stages of growth models
 Rostow’s stage of growth
 Harod Domar growth model
 Solow growth model
3.3.2. Structural change models: Lewis theory of
Development
3.3.3. Dualistic Theories
 Social Dualism
 Technological Dualism
 Financial Dualism
3.3.4. The process of Cumulative Causation
3.3.5. The Balanced Growth vs Unbalanced Growth
3.3.6. The International Dependence Model
3.3.7. A Model of Low Level Equilibrium Trap
3.3.8. The Neoclassical counterrevolution
3.3.9. The new growth theories
 Endogenous Growth Theory
 The Big-Push Theory
3.4. The O-Ring model
4. Historic Growth and contemporary Development:
Lessons and controversies
4.3. The Economics of growth
4.3.2. Traditional Approach (Economic Factors) to
Development
 Natural Resource
 Capital Accumulation
 Organization
 Technological Progress
9
 Division of Labor and Scale of Production
hours
4.3.3. Institutional Approach to Development
 Type of Government
 Institutions
 Social Structure of Population
 Social Capital and Cultural Traits
4.4. The Historical record: Kuznets’s six characteristics of
Modern Economic Growth
4.5. The limited value of the Historical Growth Experience:
Differing Initial Conditions
5. Income Inequality, Poverty and Development
5.1 Overview of Income Distribution, Poverty and
Economic Growth
5.2 Measures of Income Inequality and Poverty
12  Approaches to Measures of Income Inequality
hours  Approaches to Measures of Absolute Poverty
5.3 Poverty, Inequality, and Social Welfare
 What’s So Bad about Extreme Inequality?
 Kuznets Inverted U-hypothesis
 Income Inequality and Economic Growth

Course instructor: Kahsay H. Phone no. 0914618644

 5.4 Poverty Reduction and Economic Growth
5.5 Economic Characteristics of poverty groups
 Rural Poverty
 Women and Poverty
 Ethnic Minorities, Indigenous Populations, and
Poverty
5.6 Policies Options for Poverty Reduction and
enhance income Distribution

Course Delivery Methods

The delivery method shall be student-centered. Students are highly expected to
participate in class works at the middle and end of each session and in group
discussions inside and outside of the class. Specifically the course will be
delivered through the following methods:
 Lecture Method
 In-class problem solving
 Group Work
 Assignment
Assessment Methods
Student evaluation in this Courseconsist both formative and summative assessments
including quizzes, test and final exam. Marks will be allocated according to the following
grading schedule.

Assessment method Weight

Assignment (Indiv/group) 20%
Quizzes/Tests(Max of 10 % each) 30%
Final Exam 50 %
Total 100%

Course instructor: Kahsay H. Phone no. 0914618644

 Course Policy
 Late coming is not allowed and no student is allowed to enter after
class has started.
 Duplication of assignments is strictly forbidden; it entails serious
penalty.
 Assignments are required to be submitted before or on the deadline.
 Cheating during exam sessions results in a minimum of “F “grade
while cheating in quizzes and tests is subjected to a zero mark. All cheating
cases will be reported to the department for further considerations.
 Students should switch off their cell phones while they are in class and
must keep their cell phones switched off during all kinds of exam sessions.
 Students must attend 80% of the class for the course. Failure to attend
80% of the class will not allow the student to sit for the final exam.
 Missing a quiz without convincing evidences will earn the students a
grade of zero marks in that specific quiz.

Required References
1. Todaro,M.,(1994)EconomicDevelopment,Fiftheditions,Longman:New
Yorkand
London.
2. TodaroM.P.& Smith S.C.(2012) Development Economics, eleventh
edition,Harlow, Pearson & Addison Wesley:London.
3. Ray, D.(1998) Development Economics, Princeton UniversityPress.
4. Gillis, Dwight H. Perkins, Michael R., Donald R. and Snodgrass,
W.W. (1996) Economics of Development, Malcolm. Norton &Company.
5. Meier, Gerald, M. and James E. Rauch(2000)Leading Issues in
Economic Development, Seventh edition, Oxford University Press:New York
and Oxford.
6. Ghatak,S.(1995)Introduction to Development Economics,Third
edition,Routledge: London.
7. Basu, Kaushik(1997) Analytical Development Economics: The Less
Developed Economy Revisited, TheMIT Press:London.
8. Thirlwall,A.P.(2003)Growth and Development:With special reference
to Developing countries, Seventh edition, PalgraveMacmillan, UK.
9. Jones, introduction to Economic growth
10. Bardhan, Pranab and Christopher Udry (1999) Development
Microeconomics, Oxford UniversityPress:
11. Deaton, Angus(1997)The Analysis of Household Surveys: A
Microeconometric Approach to Development Policy, theWorld Bank, the
John Hopkins University Press: Baltimore.
12. Dasgupta, Partha (1993) An Enquiry into Well-Being and Destitution,
Clarendon Press: London.
13. World Bank, (various issues) World development report.

Course instructor: Kahsay H. Phone no. 0914618644