The aim of this master's level course is to provide understanding of modern growth theories (including those that explicitly model innovation as the main engine of growth), with special reference to the circumstances in developing countries. The second part of the course deals with selected issues in development economics, including structural change, the role of finance in development, globalisation and the impacts of foreign aid. Some of the lectures on topics in development economics will be given by guest lecturers from the Aalto University School of Economics and the World Institute for Development Economics Research (WIDER).

Lectures (22 h)  will take place on Mondays at 10-12 and Tuesdays at 12-14, starting on February 1.  Lectures will be transmitted by video to the University of Jyväskylä.

An essential part of the course is a term paper written during the course. This essay will be written on a special topic in development agreed beforehand with the course instructor. 60% of the course grade will be based on the final exam and the remaining 40% will be based on the essay. Returning an accepted essay will be obligatory for passing the course.  In the end of the course, we will organise essay seminars (most likely one in Tampere and another in Jyväskylä) with students giving short presentations on their essays.

The course will involve some technical material and therefore it is strongly advisable that students have taken micro and/or macroeconomics at the advanced level before entering this course. In addition, knowledge of techniques in advanced level econometrics will be an asset.

The main text book of the course is Aghion - Howitt (2009): Economics of Growth, MIT Press. The book will be complemented with material from Basu (2003): Analytical Development Economics, as well as journal articles.

TIME SCHEDULE:

Lectures: Mondays at 10-12, Tuesdays at 12-14

1 Feb: Lecture 1 (Pirttilä) Introduction.
7 Feb: Lecture 2 (Pirttilä) Basic Growth Theories.
14 Feb: Lecture 3 (Pirttilä) Endogenous Growth Models.
15 Feb: Lect. 4 (Pirttilä) Endogenous Growth Models II.
21 Feb: Lect. 5 (Pirttilä) Growth Theory: The Relevance to Developing Countries.
22 Feb: Lecture 6 (Pirttilä) Structural Change in Developing Countries.
28 Feb: Lecture (Pirttilä).
1 March: Guest Lecture by Professor Finn Tarp (Head of UNU-WIDER): Aid, Growth and Development.
14 March: Guest Lecture by Anni Heikkilä (PhD Student, Aalto University School of Economics): Microfinance I: Adverse Selection and Empirical Studies.
15 March: Guest Lecture by Dr Khondker Aktaruzzaman (University of Helsinki): Microfinance II: Moral Hazard and Empirical Studies.
21 March: Guest Lecture by Professor Pertti Haaparanta (Aalto University School of Economics): Globalisation and Development.
22 March: Guest Lecture by Dr James Thurlow (UNU-WIDER): Climate Change and Economic Development.

Essay Seminars:

28 March: Tampere
29 March: Jyväskylä

Exams:

Mon 04.04.2011 at 13:00-16:00 (Pinni B3107)
Tue 26.04.2011 at 13:00-16:00 (Pinni A3111)