Numbering Code	G-AAA01 81323 LE31	Year/Term	2022 ・ Second semester
Number of Credits	2	Course Type	Lecture
Target Year	From 1st to 5th year students	Target Student
Language	English	Day/Period	Wed.1
Instructor name	MACHIKITA TOMOHIRO (Center for Southeast Asian Studies Associate Professor)
Outline and Purpose of the Course	This course studies quantitative analytical frameworks and use case studies to examine the role of geographic and institutional factors such as community development, skills, migration, agglomeration of economic activities, in understanding the performance of regions in emerging/developing vs developed economies. We will analyze regional differences through geography and institutions, answering questions such as: How does urbanization relate to economic development? How does institutional difference have persistent effects on economic development? How do skill transferability and migration affect economic development? How does intergroup contact foster nation building?
Course Goals	Through active participation in discussions and presentations of assigned papers, students will absorb the research designs of the most up-to-date study results, and each student will be involved in their own research thesis. Students will learn methods for performing comprehensive, micro-level research on organizations, companies, industries, employment, foreign trade, production networks, and urbanization in developing economies or "newly emerging" economies. Students will study the basic mechanisms of industrial development and prior empirical research, acquiring the basic knowledge needed to independently understand the latest research results. The reference and lecture notes, and materials cover a broad range of research results regarding the economies of newly emerging nations, mainly in East and Southeast Asia, but are also spreading to incorporate the African continent and Latin America.
Schedule and Contents	Readings marked by asterisks (*) are required. Others are recommended. Main textbook: Debraj Ray, Development Economics. Princeton University Press, 1998 (hereafter "Ray"). Week 1 General introduction to this course, and to the study of Development Economics. We will also discuss facts to be explained. *Ray, Ch. 1. ・Samphantharak, Krislert, 2021. Economic Development of Southeast Asia. Book Project. Week 2 Facts and measuring development, growth, and poverty *Ray, Ch. 2. ・Abhijit Banerjee, Roland Benabou, Dilip Mookherjee, (ed). 2006. Understanding Poverty. Oxford University Press. ・Timothy F. Bresnahan and Robert J. Gordon, ed, The Economics of New Goods, University of Chicago Press. ・Henderson, Vernon, J., Adam Storeygard, David N. Weil. 2012. "Measuring Economic Growth from Outer Space." American Economic Review, 102(2): 994-1028. DOI: 10.1257/aer.102.2.994 ・Donaldson, Dave, and Adam Storeygard. 2016. "The View from Above: Applications of Satellite Data in Economics." Journal of Economic Perspectives, 30 (4): 171-98. DOI: 10.1257/jep.30.4.171 ・Piketty, Thomas. 2003. "Income inequality in France, 1901-1998." Journal of Political Economy, 111(5): 1004-1042. Week 3 Economic growth theories *Ray, Ch. 3-4. ・Abhijit Banerjee and Esther Duflo. 2019. Good Economics for Hard Times. Public Affairs. ・Abhijit Banerjee, Roland Benabou, Dilip Mookherjee, (ed). 2006. Understanding Poverty. Oxford University Press. ・Bates, Robert H., Avner Greif, Margaret Levi, Jean-Laurent Rosenthal, and Barry R. Weingast. Analytic Narratives, Princeton: Princeton University Press, 1998. Week 4 History, expectations, and institutions *Ray, Ch. 5. ・Akcigit, Ufuk and Tom Nicholas. 2019. "History, Microdata, and Endogenous Growth." Annual Review of Economics, 11: 615-633. ・Dell, Melissa. 2010. "The Persistent Effects of Peru's Mining Mita." Econometrica 78(6): 1863-1903. ・Dell, Melissa, Nathan Lane, and Pablo Querubin. 2018. "The Historical State, Local Collective Action, and Economic Development in Vietnam." Econometrica, 86(6): 2083-2121. Week 5 Markets, institutions, and economic development *John McMillan. 2002. Reinventing the Bazaar: The Natural History of Markets. W. W. Norton & Company. ・Avner Greif. 2006. Institutions and the Path to the Modern Economy: Lessons from Medieval Trade. Cambridge University Press. ・Dell, Melissa, and Benjamin Olken. 2020. "The Development Effects of the Extractive Colonial Economy: The Dutch Cultivation System in Java." Review of Economic Studies, 87(1): 164-203. MIT News- The complex effects of colonial rule in Indonesia. ・Dippel, Christian, Avner Greif, Dan Trefler, 2020. "Outside Options, Coercion, and Wages: Removing the Sugar Coating," The Economic Journal. 130, issue 630: 1678-1714. Week 6 Measuring and explaining inequality: The role of political economy and institutions *Ray, Ch. 6 and Ch. 8. ・Daron Acemoglu and James A. Robinson. 2012. Why Nations Fail: Origins of Power, Poverty and Prosperity. Currency. ・Daron Acemoglu and James A. Robinson. 2019. The Narrow Corridor: States, Societies, and the Fate of Liberty. Viking. ・Jean Dreze and Amartya Sen. 2013. An Uncertain Glory: India and Its Contradictions. Princeton University Press. ・Eric Chaney. 2013. Revolt on the Nile: Economic Shocks, Religion and Political Power. Econometrica. 81(5): 2033-2053. Week 7 Rural-urban interconnections, urbanization, and infrastructure *Ray, Ch. 9 and Ch. 10. ・Mukesh Eswaran and Ashok Kotwal. 1994. Why Poverty Persists in India: A Framework for Understanding the Indian Economy. Oxford University Press. ・Kaivan Munshi. 2020. "Social Networks and Migration" Annual Review of Economics. ・Bazzi, Samuel, Arya Gaduh, Alexander D. Rothenberg, Maisy Wong, 2016. "Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia." American Economic Review, 106(9): 2658-2698. ・Bazzi, Samuel, Arya Gaduh, Alexander D. Rothenberg, Maisy Wong, 2019. "Unity in Diversity? How Intergroup Contact Can Foster Nation Building," American Economic Review, 109(11): 3978-4025. ・Bryan, Gharad, Edward Glaeser, and Nick Tsivanidis. 2019. "Cities in the Developing World." NBER Working Paper No. 26390. Henderson, Vernon and Matthew A. Turner. 2020. "Urbanization in the developing world: Too early or too slow?" Journal of Economic Perspectives. ・Marx, Benjamin, Thomas Stoker and Tavneet Sur. 2013. "The Economics of Slums in the Developing World." Journal of Economic Perspectives 27(4): 187-210. ・Akbar, Prottoy A., Victor Couture, Gilles Duranton, and Adam Storeygard. 2018. "Mobility and Congestion in Urban India." ・Hjort, Jonas and Jonas Poulsen. 2019. "The Arrival of Fast Internet and Employment in Africa." American Economic Review, 109(3): 1032-1079. DOI: 10.1257/aer.20161385 Week 8 Midterm presentations Detailed instructions will be given later in the semester by Week 5. Week 9 Markets and transactions in agriculture: Land and credit *Ray, Ch. 11. ・Ray, Ch. 12 and Ch. 14. ・Rachel Kranton and Anand Swamy. "Contracts, Hold-Up and Exports: Textiles and Opium in Colonial India," American Economic Review 98 (3), June 2008, pp. 967-89. ・Raul Sanchez de la Sierra. "Whither Formal Contracts?" Econometrica. Forthcoming. Week 10 Markets and transactions in agriculture: labor and insurance *Ray, Ch. 13. Ray, Ch. 15. ・Michihiro Kandori, Shinya Obayashi. Labor union members play an OLG repeated game. Proceedings of the National Academy of Sciences Jul 2014, 111 (Supplement 3) 10802-10809; DOI: 10.1073/pnas.1400827111 ・Esteban Mendez-Chacon and Diana Van Patten. 2021. "Multinationals, Monopsony, and Local Development: Evidence from the United Fruit Company." Week 11 International trade, development strategies, and institutions *Ray, Ch. 16. ・Ray, Ch. 17 and Ch. 18. ・Diego Puga and Daniel Trefler. "International trade and institutional change: Medieval Venice's response to globalization," Quarterly Journal of Economics 129(2), May 2014: 753-821. Week 12 Firms: microeconomics of industrial development *Verhoogen. 2021. "Firm-Level Upgrading in Developing Countries." ・Jensen, Robert, and Nolan H. Miller. 2018. "Market Integration, Demand, and the Growth of Firms: Evidence from a Natural Experiment in India." American Economic Review, 108 (12): 3583-3625. DOI: 10.1257/aer.20161965 ・Jensen, Robert. 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector." The Quarterly Journal of Economics, 122(3): 879-924. DOI: 10.1162/qjec.122.3.879 ・Felkner, John S. and Robert M. Townsend. 2011. "The Geographic Concentration of Enterprise in Developing Countries." The Quarterly Journal of Economics, 126(4): 2005-2061. DOI: 10.1093/qje/qjr046 Week 13 Management: microeconomics of industrial development *Bloom, Nicholas, Benn Eifert, Aprajit Mahajan, David McKenzie, and John Roberts. 2013. "Does Management Matter? Evidence from India." The Quarterly Journal of Economics, 128(1): 1-51. DOI: 10.1093/qje/qjs044 (VoXDev) ・Bloom, Nicholas, Aprajit Mahajan, David McKenzie and John Roberts. 2020. Do Management Interventions Last? Evidence from India. AEJ: Applied Economics, 12(2):198-219. ・Bloom, Nicholas, Aprajit Mahajan, David McKenzie, and John Roberts. 2010. "Why Do Firms in Developing Countries Have Low Productivity?" American Economic Review, 100 (2): 619-23. DOI: 10.1257/aer.100.2.619 ・Giorcelli, Michela. 2019. "The Long-Term Effects of Management and Technology Transfers." American Economic Review, 109 (1): 121-52. DOI: 10.1257/aer.20170619 Week 14 Organizations and incentives: microeconomics of industrial development *Atkin, David, Azam Chaudhry, Shamyla Chaudry, Amit K. Khandelwal, and Eric Verhoogen. 2017. "Organizational Barriers to Technology Adoption: Evidence from Soccer-Ball Producers in Pakistan." The Quarterly Journal of Economics, 132(3): 1101-1164. DOI: 10.1093/qje/qjx010 ・Karpoff, Jonathan. 2001. Public Versus Private Initiative in Arctic Exploration: The Effects of Incentives and Organizational Structure Journal of Political Economy 109(1): 38-78. ・Chan, David C. 2016. "Teamwork and Moral Hazard: Evidence from the Emergency Department." Journal of Political Economy, 124(3): 734-770. DOI: 10.1086/685910. ・Chan, David C. 2019. "The Efficiency of Slacking Off: Evidence from the Emergency Department." Econometrica, 86(3): 997-1030. DOI: 10.3982/ECTA13565 Week 15 Final presentation The detailed instruction will be given later in the semester by Week 10.
Evaluation Methods and Policy	Class attendance and active participation (40%), two in-class presentations of midterm and final projects (15% each), and final report (30%). Active and constructive participation during the class discussions will influence your grade as well. The midterm take-home exam will consist of both analytical and empirical questions. Detailed instructions will be given later in the semester by Week 5. Regarding the final project, students must submit the final report.
Course Requirements	Each class meeting will open with a presentation by the instructor, followed by discussion of the assigned textbook. Active class participation will, thus, form a major component of one's overall grade for the course. Without imposing a strict requirement, I assume familiarity with the concepts taught in basic undergraduate-level Statistics. This is an economics class that employs quantitative reasoning.
Study outside of Class (preparation and review)	Students should read the papers that are assigned for each upcoming class and participate in class discussions. Supplementary to course content, students are also encouraged to pursue self-study on statistical methods, qualitative research methods, and microeconomics in order to better understand related academic papers. Please check the following textbooks: (1) Varian's Microeconomic Analysis; (2) Gibbons' Game Theory for Applied Economists; (3) Cunningham's Causal Inference: The Mixtape; (4) Hernan and Robins' Causal Inference: What If; (5) Angrist and Pischke's Mostly Harmless Econometrics.
Textbooks	Textbooks/References	Instructions will be provided during class.
References, etc.	Others, all of the required readings are available on electronic reserve via Panda.