Economics 355

Economic Development and

Growth
Fall 2007
Dr. Léonie L. Stone

South 115B1,  Office Hours: Tuesday, 2-3

and by appointment. There will be additional
office hours each week as necessary; talk to
me or check the website for weekly additional
hours.
Office: 245-5428 Home: 245-9383  
Email: stone@geneseo.edu
http://www.geneseo.edu/~stone

Catalog Description:
A study of the existing disparities between developed and less developed countries, problems faced by
less developed countries, historical and modern theories regarding economic development, and an
introduction to growth theory.   

Intended Learning Outcomes:

This course is designed to introduce students to the theories of economic development and growth, both
classical and modern. Throughout this course, the focus is on two simultaneous themes: economic theory
and its application to development problems; and the interaction between economic theories and the
political arena.
By the end of this course, students should be able to:
 Understand the historical patterns of development in the Western world, and how the
development of other countries has deviated from those paths.
 Explain the causes and implications of income inequality.
 Use both classical and modern theories of growth and development to analyze the problems of the
developing world.
 Understand the roles of population growth and human capital in the development problem.
 Relate theories of international trade to growth in less-developed countries.
 Analyze macroeconomic policies aimed at facilitating development and their implications.
 Use the tools developed in this class to analyze the development problems of a specific country.

How This Course Relates to the School of Business Educational Objectives and Course Sequence:
 This course emphasizes critical thinking and the application of both logical and quantitative
skills. To succeed in this course, you must communicate clearly and effectively in writing, and
you must learn to relate graphing techniques to written arguments.
 This courses stresses the application of economic theory to real-world economic problems in
development economics that are relevant to economics, international relations, and business
administration students, as well as others.
 This course is an elective course in the economics sequence. It builds on skills learned in Econ
101 and 102, which are enforced prerequisites to this course.

Textbook:
Todaro and Smith, Economic Development, 9th edition (Addison-Wesley). Subscription to The
Economist is REQUIRED. To register for an academic price ($19.95 for 12 weeks), go to
www.economistacademic.com, and use this registration code: 3433.

Grading:
Your grade will be based on three exams (10/10/30% each), class participation and reading assignments
(15%), and the term project (35%). The third exam is given during the final period. Most exams will
include some take-home component. Make-ups on exams will be given only in the case of documented
emergencies. Consideration will be given to exceptional class participation in the case of borderline
grades.

What PARTICIPATION Means:

You are, in addition to the assignments and end-of-semester presentation, responsible for keeping up with
current events that are relevant to international macroeconomics in general and specifically to the country
that you have chosen (and things that may have an impact on it). Every Friday we will have a current
events discussion, and you are expected to be prepared for this. Participation is 15% of your grade. If
you do not participate, the grade you will receive is 0%… which means that if you get 100% on
everything else, the maximum grade you can receive is a B. (Participation also includes general class
discussion and attendance/discussion at the presentations of others.)

The Country Analysis Project:

During the first week of class, you will choose a country for your term project. This must be a
developing country, not an industrialized country. You are, in addition to the end-of-semester
presentation and country analysis, responsible for keeping up with current events in the country that you
have chosen. Every Friday we will have a current events discussion, and you are expected to be prepared
for this. Further information on the country analysis and a suggested outline will be distributed in the
second week of class. Countries are selected on a first-come, first-served basis with approval of the
professor.

You will present your country analysis in a term paper and presentation at the end of the semester.
Presentations will be in the last two weeks of class. Papers are due the last day of class, although earlier
submission is encouraged.

Exam Schedule:
Exam 1: Tuesday, September 25
Exam 2: Tuesday, October 30
Exam 3/Final: Tuesday, December 18, 8:00-11 a.m.
Note that, other than the final, the exam schedule in this class is tentative and may change, depending on coverage of
material and other events, such as Fed Challenge. We may have the final exam early and schedule presentations during
the final period (attendance and participation is mandatory).
Course Schedule:
(Chapter dates listed are tentative and subject to change… probably immediately!)

Week 1: August 28, 30

Chapter 1: How the Other Half Live
Chapter 2: Comparative Development

Week 2: September 4, 6
Chapter 3: Classic Theories of Economic Development

Week 3: September 11, 14

Chapter 4: Contemporary Models of Development and Underdevelopment

Week 4: September 18, 20

Chapter 5: Poverty, Inequality, and Development
Chapter 6: Population Growth

Week 5: September 25, 27

Chapter 7: Urbanization and Rural-Urban Migration

Week 6: October 2, 4
Chapter 8: Human Capital
Chapter 9: Agricultural Transformation and Rural Development

Week 7: October 9, 11
Chapter 10: The Environment and Development
NO CLASS OCTOBER 9-FALL BREAK

Week 8: October 16, 18

Chapter 11: Planning Issues

Week 9: October 23, 25

Chapter 12: Trade and Development

Week 10: October 30, November 1

Chapter 13: The Trade Policy Debate

Week 11: November 6, 8

Chapter 14: Balance of Payments, Developing-Country Debt, and the Macroeconomic Stabilization
Controversy

Week 12: November 13, 15

Other topics as time permits.

Week 13: November 20

TBA

Week 14: November 27, 29

Presentations

Week 15: December 4, 6

Presentations

Final: Tuesday, December 18th , 8:00-11 a.m., same room

(No early finals will be given under ANY circumstances.)