Lecture 5: Economic Growth and Development

Business & Economics - 13 slides

This lecture delves into the various theories and models of economic growth, highlighting key factors such as capital accumulation, technological innovation, and the role of policy frameworks. Through the exploration of historical and contemporary examples, students gain insights into how different

Topics Covered

  • Introduction: Economic Growth and Development
  • Adam Smith and the Classical Growth Model
  • Ricardo’s Model: Comparative Advantage and Growth
  • The Harrod-Domar Model: Savings and Investment
  • Solow-Swan Growth Model: Foundations of Neoclassical Growth Theory
  • Endogenous Growth Theory: Innovation and Human Capital
  • Case Study: East Asian Tigers and Economic Growth
  • Factor Accumulation: Capital and Labor Dynamics
  • Technological Innovation: A Catalyst for Growth
  • Role of Institutional and Policy Frameworks
  • Sustainable Economic Growth: Balancing Expansion with Constraints
  • Growth and Income Inequality: The Kuznets Hypothesis
  • Summary and Final Reflections on Growth Theory

References

  • Todaro, M.P. and Smith, S.C. (2020) Economic Development. 13th edn. Harlow: Pearson.
  • Romer, P.M. (1986) 'Increasing Returns and Long-Run Growth', Journal of Political Economy, 94(5), pp. 1002-1037.
  • Smith, A. (1776) An Inquiry into the Nature and Causes of the Wealth of Nations. London: W. Strahan and T. Cadell.
  • Landes, D.S. (1998) The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor. London: W.W. Norton & Company.
  • Ricardo, D. (1817) On the Principles of Political Economy and Taxation. London: John Murray.
  • Krugman, P. and Obstfeld, M. (2022) International Economics: Theory and Policy. 12th edn. Hoboken: Pearson.
  • Harrod, R.F. (1939) 'An Essay in Dynamic Theory', The Economic Journal, 49(193), pp. 14-33.
  • Domar, E.D. (1946) 'Capital Expansion, Rate of Growth, and Employment', Econometrica, 14(2), pp. 137-147.
  • Solow, R.M. (1956) 'A Contribution to the Theory of Economic Growth', Quarterly Journal of Economics, 70(1), pp. 65-94.
  • Swan, T.W. (1956) 'Economic Growth and Capital Accumulation', Economic Record, 32(2), pp. 334-361.
  • Romer, P.M. (1986) 'Increasing Returns and Long-Run Growth', Journal of Political Economy, 94(5), pp. 1002–1037.
  • Lucas, R.E. (1988) 'On the Mechanics of Economic Development', Journal of Monetary Economics, 22(1), pp. 3–42.
  • World Bank (1993) The East Asian Miracle: Economic Growth and Public Policy. Oxford: Oxford University Press.
  • Amsden, A.H. (1989) Asia's Next Giant: South Korea and Late Industrialization. Oxford: Oxford University Press.
  • Solow, R.M. (1956) 'A Contribution to the Theory of Economic Growth', Quarterly Journal of Economics, 70(1), pp.65-94.
  • Bloom, D.E., Canning, D. and Sevilla, J. (2003) The Demographic Dividend: A New Perspective on the Economic Consequences of Population Change. Santa Monica: RAND Corporation.
  • Romer, P.M. (1990) 'Endogenous Technological Change', Journal of Political Economy, 98(5), pp.S71-S102.
  • Mokyr, J. (1990) The Lever of Riches: Technological Creativity and Economic Progress. New York: Oxford University Press.
  • North, D.C. (1991) 'Institutions', Journal of Economic Perspectives, 5(1), pp. 97-112.
  • Rodrik, D. (2007) One Economics, Many Recipes: Globalization, Institutions, and Economic Growth. Princeton, NJ: Princeton University Press.
  • Acemoglu, D. and Robinson, J.A. (2012) Why Nations Fail: The Origins of Power, Prosperity, and Poverty. New York: Crown Business.
  • Grossman, G.M. and Krueger, A.B. (1995) 'Economic growth and the environment', Quarterly Journal of Economics, 110(2), pp. 353-377.
  • United Nations (2015) The Paris Agreement. Available at: https://unfccc.int/paris-agreement
  • Kuznets, S. (1955) 'Economic Growth and Income Inequality', The American Economic Review, 45(1), pp. 1–28.
  • Piketty, T. (2013) Capital in the Twenty-First Century. Cambridge: Harvard University Press.
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