Search type

School of Social Sciences

Students outside a lecture theatre at The University of Manchester
BAEcon Economics
Learn how the social sciences can help you to understand today's world.

BAEcon Economics / Course details

Year of entry: 2018

Course unit details:
Development Economics IIB

Unit code ECON20332
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 2
Offered by Economics
Available as a free choice unit? Yes


See course Blackboard pages.


Unit title Unit code Requirement type Description
ECON10041 Pre-Requisite Compulsory
ECON10042 Pre-Requisite Compulsory
ECON10081 Pre-Requisite Compulsory
ECON10082 Pre-Requisite Compulsory
Pre-Requisites: At least 10 credits of level 1 Micro & Macroeconomics units:- EITHER (ECON10041or ECON10042 or ECON10081 & ECON10082)

Students must have taken at least one of the following (compulsory Pre-Requisite):

  • ECON10041 or
  • ECON10081 or
  • ECON10171 or
  • ECON10181


  • To familiarise students with the theoretical and empirical aspects of economic development faced by less developed countries (LDCs).
  • To provide students with key concepts of Development Economics.
  • To provide students with the basic skills required for the development of an independent understanding of the hot issues in Development Economics.

Learning outcomes

At the end of this course students should be able to:

  1. Explain the key issues in developing countries making reference to the existing theoretical and empirical literature.
  2. Assess critically aid-supported macroeconomic reform policies implemented in LDCs and their micro implications.
  3. Demonstrate their understanding of how asymmetries in information affect and condition LDCs in the international economy and of the factors that influence LDCs growth and development prospects.
  4. Express ideas coherently in structured essays.


Lecture 1

  • Introduction: What is Economic Development?
  • Overview:  Overview of the course and of the topics discussed during the course.

Lecture 2

  • The Family and how the members make decisions.


Lecture 3

  • Education and the role of Human Capital in the growth process.


Lecture 4

  • Foreign Aid for Development: the role of International Organizations in LDCs on aid allocation policies and strategies.


Lecture 5

  • Land and Asymmetries in Information: ownership and tenancy, land rental contracts and the role of incentives.


Lecture 6

  • Rural and Urban: formal and informal sector and the interaction between the two.


Lecture 7

  • Credit Market and Insurance: theories of informal credit markets.


Lecture 8

  • Revision Class for the Exam.

Teaching and learning methods

Lectures and tutorial classes.

Employability skills

Analytical skills
Synthesis and analysis of data and information. Critical reflection and evaluation. Decision-making.
Problem solving
Planning independent research. Using library, electronic and online resources.

Assessment methods

For information about feedback please follow this link:

86% Exam
14% Mid-term exam

Feedback methods

  • Tutorial feedback.
  • Office hours.
  • Revision sessions.

Recommended reading

The basic textbook for this module is:

  • Debraj, R. (1998), Development Economics, last edition, Princeton University Press.




Additional readings:


Lecture 1: Introduction: What is Economic Development? Overview.

  • BOOK: Ray (Ch. 2);
  • Basu, K. and Maertens, A. (2007). The pattern and causes of economic growth in India. Oxford Review of Economic Policy, 23: 143–167.
  • Banerjee, A.V. and Du¿o, E. (2007). The Economic Lives of the Poor. The Journal of Economic Perspectives. 21(1):141–167.
  • Sen, Amartya. (1988). The Concept of Development. Chapter 1 in Handbook of Development Economics (1988), Vol. I, edited by Chenery, H. and Srinivasan, T. N.


Lecture 2: The Family and how the members make decisions.

  • A Cournot–Nash Model of Family Decision Making, The Economic Journal Volume 111, Issue 474, pages 722–748, October 2001
  • Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa, Duflo (2003), World Bank Economic Review.
  • Gender, Agricultural Production and the Theory of the Household, Chris Udry, Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October, 1996.


Lecture 3: Education and the role of Human Capital in the growth process.

  • BOOK: Ray (Ch. 4-5); 
  • Du¿o, E. (2001). Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment. American Economic Review, 91(4): 795–813.
  • Galor, O. and Zeira, J. (1993). Income Distribution and Macroeconomics. Review of Economic Studies, 60(1): 35–52.


Lecture 4: Foreign Aid for Development.

  • Robinson, S. and F. Tarp (2000), A Foreign Aid and Development: Synthesis in F. Tarp and P. Hjertholm (editors), Foreign Aid and Development: Learnt and Directions for the Future, Routledge, London and New York.
  • Burnside, G. and D. Dollar (2000), “Aid, Policies and Growth”, American Economic Review, pp.847-868.
  • Hansen, H. and F.Tarp, (2000), “Aid effectiveness disputed”, Journal of International Development, Vol. 12 (3), pp. 375-98.
  • Alesina, A. and D. Dollar (2000), "Who Gives Foreign Aid to Whom and Why?”, Journal of Economic Growth, Vol.5, No.1, pp.33-63.


Lecture 5: Land and Asymmetries in Information: ownership, tenancy and land rental contracts

  • BOOK: Ray (Ch. 12)
  • Banerjee, A., Gertler, P., and Ghatak, M. (2002). Empowerment and Ef¿ciency: Tenancy Reform in West Bengal. Journal of Political Economy, 110(2):239–80.
  • Besley, T. and Burgess, R. (2000). Land Reform, Poverty Reduction, and Growth: Evidence from India. The Quarterly Journal of Economics, 115(2): 389–430.


Lecture 6: Rural and Urban Context: formal and informal sector and the interaction between the two.

  • BOOK: Ray (Ch. 10-11)


Lecture 7: Credit Market and Insurance:  theories of informal credit markets

  • BOOK: Ray (Ch. 14-15)
  • Ghosh, P., Mookherjee, D., & Ray, D, (2000). Credit Rationing in Developing Countries: An Overview of the Theory. Chapter 11 in Readings in the Theory of Economic Development, edited by Mookherjee, D. & Ray, D., London: Blackwell, pages 383–301
  • Burgess, R., and R. Pande (2005). Do rural banks matter? Evidence from the Indian social banking experiment. American Economic Review 95, no. 3: 780–795.

Study hours

Scheduled activity hours
Assessment written exam 1.5
Lectures 16
Tutorials 4
Independent study hours
Independent study 78.5

Teaching staff

Staff member Role
Alessia Isopi Unit coordinator

Return to course details