Economic Growth and Development: A Dynamic Dual Economy Approach
by Sibabrata Das (Author), Alex Mourmouras (Author), Peter Rangazas (Author)

About the Author
Peter Rangazas is professor of economics at IUPUI.  He regularly publishes in academic economics journals including the American Economic Review, Review of Economics and Statistics, Journal of Monetary Economics, and Journal of Economic Growth.  He coauthored a second book in the Springer Texts in Business and Economics series, the Macroeconomics of Corruption.
Sibabrata Das has received his Ph. D. in Economics from University of Sussex, U.K.;  and M.A. from Johns Hopkins University, U.S.A.  Dr. Das  has taught graduate courses in statistics, econometrics, microeconomics and development economics, at North Bengal University, Vidyasagar University, and Burdwan University, in India. As a research econo-mist for the Ghana macroeconomic team at the World Bank, he has worked on macroeconomic modeling, and projections for various policy papers and country operations projects. As a member of  the country teams, Dr. Das has also actively participated in World Bank-IMF country missions in Ghana, Angola, and Grenada. As a staff member he has contributed to several of the World Bank-IMF publications over the years. Currently, at the International Monetary Fund, he works on various  cross-country projects on growth, economic development, and important policy issues across the countries and regions of the world.
Alex Mourmouras is division chief in the Asia and Pacific department of the IMF where he has served as mission chief for Vietnam, Singapore and Malaysia. He was previously division chief in the IMF Institute for Capacity Development and econo-mist in the Fund’s Policy Development and Review and Fiscal Affairs Departments. Before joining the IMF, Dr. Mourmouras served as assistant and associate professor of Economics and director of graduate studies, all at the University of Cincinnati. He holds a Ph.D in economics from the University of Minnesota and a BA degree from Harvard  College.

About this book
This text is an introduction to the newer features of growth theory that are particularly useful in examining the issues of economic development. Growth theory provides a rich and versatile analytical framework through which fundamental questions about economic development can be examined. Structural transformation, in which developing countries transition from traditional production in largely rural areas to modern production in largely urban areas, is an important causal force in creating early economic growth, and as such, is made central in this approach. Towards this end, the authors augment the Solow model to include endogenous theories of saving, fertility, human capital, institutional arrangements, and policy formation, creating a single two-sector model of structural transformation. Based on applied research and practical experiences in macroeconomic development, the model in this book presents a more rigorous, quantifiable, and explicitly dynamic dual economy approach to development. Common microeconomic foundations and notation are used throughout, with each chapter building on the previous material in a continuous flow. Revised and updated to include more exercises for guided self study, as well as a technical appendix covering required mathematical topics beyond calculus, the second edition is appropriate for both upper undergraduate and graduate students studying development economics and macroeconomics.

Table of contents
1 Overview
    1.1 Beyond the Solow Model
    1.2 Foreign Aid
    1.3 Why a Two-Sector Approach?
    1.4 The Dual Economy
    1.5 Growth Facts
    1.6 Outline
    References
Part I One-Sector Growth Models
2 Overlapping-Generations Model of Economic Growth
    2.1 Firms, Production, and the Demand for Capital
    2.2 Household Saving and the Supply of Capital
    2.3 Competitive Equilibrium in a Growing Economy
    2.4 Quantitative Theory
    2.5 Human Capital
    2.6 Intergenerational Transfers
    2.7 Related Literature
    2.8 Exercises
    Appendix
    References
3 Fiscal Policy
    3.1 Introducing the Government
    3.2 Government Purchases
    3.3 Public Capital and Productivity
    3.4 Pure and Impure Public Capital
    3.5 Capital Accumulation in an Open Economy
    3.6 Government: Benevolent Dictator or Kleptocrat?
    3.7 Slowing Long-Run Economic Growth
    3.8 Convergence
    3.9 Exercises
    Appendix
    References
4 Schooling and Fertility
    4.1 The Quantity and Quality of Children
    4.2 The Nature of the Fertility-Schooling Interaction
    4.3 The Schooling Poverty Trap and Schooling Dynamics
    4.4 Numerical Example
    4.5 Schooling Poverty Traps: A Closer Look
    4.6 The Malthusian Era
    4.7 Rising Fertility in Early Development
    4.8 The Baby Boom
    4.9 One-Child Policy
    4.10 Human Capital and Inequality
    4.11 Exercises
    Appendices
    References
5 A Complete One-Sector Neoclassical Growth Model
    5.1 A Theory of Income Differences
    5.2 Cross-Country Income Differences
    5.3 International Financial Institutions and Foreign Aid
    5.4 Foreign Aid and Policy Experiments
    5.5 The Aid Cost of Reform
    5.6 Aid Failures
    5.7 Humanitarian Aid
    5.8 Conclusion
    5.9 Related Literature
    5.10 Exercises
    Appendix
    References
Part II Two-Sector and Dual Economies
6 Two Sector Growth Models
    6.1 From Stagnation to Growth
    6.2 The Structural Transformation of a Two-Sector Economy
    6.3 Two Sectors and Two Goods
    6.4 Declining Budget Shares Spent on Food
    6.5 Conclusion
    6.6 Exercises
    References
7 Wage and Fertility Gaps in Dual Economies
    7.1 Wage and Fertility Gaps
    7.2 Perfectly Competitive Markets in the Traditional Sector
    7.3 Missing Land Markets in the Traditional Sector
    7.4 Missing Labor Markets in the Traditional Sector
    7.5 The Forces That Bind Us: Missing Markets and Labor Mobility
    7.6 Asian Growth Miracles
    7.7 Productivity Gaps: Measurement and Interpretation
    7.8 Conclusion
    7.9 Exercises
    References
8 Physical Capital in Dual Economies
    8.1 Farmer-Owned Land I—Wages Gap in U.S. History
    8.2 Farmer-Owned Land II—De-industrialization in the Ottoman Empire
    8.3 Other Theories of Trade and Growth
    8.4 Large Landowners—Growth and Endogenous Fiscal Policy
    8.5 Conclusion
    8.6 Exercises
    Appendix
    References
9 A Complete Dual Economy
    9.1 The Dual Economy
    9.2 Transitional Growth in the Long-Run
    9.3 Great Waves of Growth
    9.4 South Korea: A Development Success Story
    9.5 Human Capital Extensions
    9.6 Convergence Revisited
    9.7 Politics and Growth
    9.8 The Structural Transformation in Later Stages of Development
    9.9 Conclusion
    9.10 Exercises
    References
10 Urbanization
    10.1 Urban Bias
    10.2 Growth and Urbanization
    10.3 Extensions
    10.4 City Size and Development
    10.5 Urbanization Today: New Mechanisms and Consequences
    10.6 Hukou
    10.7 De-urbanization: Past and Present
    10.8 Conclusion
    10.9 Exercises
    References
11 Conclusion
    11.1 The Onset of Growth
    11.2 The Nature of Modern Growth
    11.3 Policy Implications
    11.4 Ideas for Future Research
Technical Appendix
Index

Series: Springer Texts in Business and Economics
Length: 356 pages
Publisher: Springer; 2nd ed. 2018 edition (August 17, 2018)
Language: English
ISBN-10: 9783319897547
ISBN-13: 978-3319897547