The Political Economy of Growth

Yasushi Hazama

Tokyo University of Foreign Studies

Spring 2008

Revised, 24 April 2008

 

Class: Room 401-3

Office: Room 405

E-mail: (@tufs.ac.jp) hazama

Homepage: http://www.ide.go.jp/en/yasushi_hazama.html

 

 

Course Objectives

Economic growth is essential to the development of and stability in post-conflict societies. The aim of this course is to provide students with an overview of the relationship between political conditions and economic growth. Not only theories but also methods and empirical findings are given due weight during class discussion.

 

Course Outline

This course covers major arguments and evidence on whether and how institutions, governance, and democracy affect economic growth. It also explores the effects of economic growth and income distribution on political regimes and their stability.

                

Evaluation

Breakdown of grades:  Class participation and homework  30%

                                  Term paper                             70%

 

Requirements

The term paper is either a research paper or a literature review on the political economy of growth. It is due at 16:30 on July 17, 2008.

 

Readings

Distributed on a CD-Rom.

 

Office hour 

By an e-mail appointment.


Course Schedule

 

Week

Date

Theme

Readings

 

1

17-Apr

Course overview

 

 

2

24-Apr

Concepts and methodology

Acemoglu et al. 2001

 

3

1-May

Institutions and growth

Acemoglu et al. 2003

 

4

8-May

Orthodox reform

Corrales 2003; Ocampo 2004; Walton 2004

 

5

15-May

Unorthodox reform

Rodrik 2005; Quian 2003; Temple 2003

 

6

22-May

Aid, conditionality, and growth

Burnside and Dollar 2000; Noorbakhsh and Paloni 2001

 

7

29-May

Governance and growth

Kaufmann et al. 2007; Kaufmann et al. 2003;

Englebert 2000

8

5-Jun

Democracy and growth

Quinn and Wooley 2001; Baum and Lake 2003;

Pinto and Timmons 2005; Rodrik 2007

9

12-Jun

Determinants of governance

Keefer 2005; Licht et al. 2007

 

10

19-Jun

Economic origins of democracy

Acemoglu and Robinson 2006, 287-320

 

11

26-Jun

Growth and political stability

Bernhard et al. 2001; de Soysa 2002

 

12

3-Jul

Elections and the economy

Remmer 1991; Remmer 1993

 

13

10-Jul

Policies and the economy

Remmer 2002; Stokes 2001

 

14

17-Jul

Electoral governance

***Paper presentation***

Lehoucq 2002; Mozaffar 2002

***Term paper due***

 


References

 

Acemoglu, Daron, and James A. Robinson. 2006. Economic Origins of Dictatorship and Democracy. Cambridge: Cambridge University Press.

Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2001. “The Colonial Origins of Comparative Development: An Empirical Investigation.” American Economic Review 91(5): 1369-1401.

Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2003.* “An African Success Story: Botswana.” In In Search of Prosperity, ed. Dani Rodrik. Princeton: Princeton University Press, 80-119.

Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2005. “The Rise of Europe: Atlantic Trade, Institutional Change and Economic Growth.” American Economic Review 95(3): 546-579.

Baum, Matthew A., and David A. Lake. 2003. “The Political Economy of Growth: Democracy and Human Capital.” American Journal of Political Science 47(2): 333-347.

Bernhard, Michael, Timothy Nordstrom, and Christopher Reenock. 2001. “Economic Performance, Institutional Intermediation, and Democratic Survival.” The Journal of Politics 63(3): 775-803.

Burnside, Craig, and David Dollar. 2000. “Aid, Policies, and Growth.” The American Economic Review 90(4): 847-868.

Corrales, Javier. 2003. “Market Reforms.” In Constructing Democratic Governance in Latin America, ed. Dominguez, Jorge Il, and Michael Shifter. Baltimore: Johns Hopkins University Press: 74-99.

de Soysa, Indra. 2002. “Paradise Is a Bazaar? Greed, Creed, and Governance in Civil War, 1989-99.” Journal of Peace Research 39(4): 395-416.

Englebert, Pierre. 2000. “Pre-Colonial Institutions, Post-Colonial States, and Economic Development in Tropical Africa.” Political Research Quarterly 53(1): 7-36.

Kaufmann, Daniel, Aart Kraay, and Massimo Mastruzzi. 2007. Governance Matters VI: Governance Indicators for 1996-2006. http://info.worldbank.org/governance/wgi2007/

Kaufmann, Daniel, Massimo Mastruzzi, and Diego Zavaleta. 2003.* “Sustained Macroeconomic Reforms, Tepid Growh: A Governance Puzzle in Bolivia?” In In Search of Prosperity, ed. Dani Rodrik. Princeton: Princeton University Press, 334-398.

Keefer, Philip. 2005. “Democratization and Clientelism: Why Are Young Democracies Badly Governed?” World Bank Policy Research Working Paper(3594)

Lehoucq, Fabrice E. 2002. “Can Parties Police Themselves? Electoral Governance and Democratization.” International Political Science Review 23(1): 29-46.

Licht, Amir N., Chanan Goldschmidt, and Shalom H. Schwartzb. 2007. “Culture Rules: The Foundations of the Rule of Law and Other Norms of Governance.” Journal of Comparative Economics 35(4): 659?688.

Mozaffar, Shaheen. 2002. “Patterns of Electoral Governance in Africa's Emerging Democracies.” International Political Science Review / Revue internationale de science politique 23(1): 85-101.

Noorbakhsh, Farhad, and Alberto Paloni. 2001. “Structural Adjustment and Growth in Sub-Saharan Africa: The Importance of Complying with Conditionality.” Economic Development and Cultural Change 49(3): 479-509.

Ocampo, Jose Antonio. 2004. “Latin America's Growth and Equity Frustrations During Structural Reforms.” The Journal of Economic Perspectives 18(2): 67-88.

Pinto, Publo M., and Jeffrey F. Timmons. 2005. “The Political Determinants of Economic Performance: Political Competition and the Sources of Growth.” Comparative Political Studies 38(1): 26-50.

Qian, Yingyi. 2003.* “How Reform Worked in China.” In In Search of Prosperity, ed. Dani Rodrik. Princeton: Princeton University Press, 297-333.

Quinn, Dennis P., and John T. Woolley. 2001. “Democracy and National Economic Performance: The Preference for Stability.” American Journal of Political Science 45(3): 634-657.

Remmer, Karen L. 1991. “The Political Impact of Economic Crisis in Latin America in the 1980s.” American Political Science Review 85(3): 777-800.

Remmer, Karen L. 1993. “The Political Economy of Elections in Latin America, 1980-1991.” American Political Science Review 87(2): 393-407.

Remmer, Karen L. 2002. “The Politics of Economic Policy and Performance in Latin America.” Journal of Public Policy 22(1): 29-59.

Rodrik, Dani. 2005. “Growth Strategies.” In Handbook of Economic Growth, ed. Philippe Aghion and Steven N. Durlauf. Amsterdam: Elsevier. 1A.

Rodrik, Dani. 2007. One Economics, Many Recipes: Globalization, Institutions, and Economic Growth. Princeton: Princeton University Press.

Stokes, Susan. 2001. Mandates and Democracy: Neoliberalism by Surprise in Latin America. Cambridge: Cambridge University Press.

Temple, Jonathan. 2003.* “Growing into Trouble: Indonesia after 1966.” In In Search of Prosperity, ed. Dani Rodrik. Princeton: Princeton University Press, 152-183.

Walton, Michael. 2004. “Neoliberalism in Latin America: Good, Bad, or Incomplete?” Latin American Research Review 39(3): 165-183.

* Saved as Rodrik (2003) on the CD-Rom.