Critical Literature Review Topics on Economic Development and Growth

Is economic development and economic growth enough to explain well-being?

Here is a list of potential topics you may consider for the preparation of your critical literature review. The following list of topics is purely indicative. You might opt for one of them or select another one of your own choice. If so, please state very clearly which is your own selected
topic at the very beginning of your critical literature review output file.

Some of the topics (ex: financial liberalization) included in this list will be considered in a relatively late part of this module and won’t be addressed before the submission deadline. Please, give a look to the module handbook in order to have a better idea of the weekly topics that we will discussed in the upcoming lectures up to the end of the ECON1157 module. Also, make reference to the additional set of readings reported in the ECON1157 module handbook for the preparation of your work. You can obviously discuss specific aspects of your critical.

 Is economic development and economic growth enough to explain well-being? A critical literature review on possible discrepancies between economic development and happiness (hint: take into account the discussions developed during lecture 1 and perhaps develop the “capability approach” as originally put forward by Nobel laurate Amartya Sen).

What went wrong with the Harrod-Domar model when applied to developing countries? Provide a critical analysis of why capital accumulation is not enough to bring growth to developing countries (hint: take into account the discussions developed during lectures take also into account the additional material on this topic uploaded onto Moodle).

Predicted converge and observed divergence between developed and developing counties. Try to provide a critical literature review of those contributions that try to explain why predicted convergence between developed and developing countries, as for the Solow model, did not
effectively take place, or it was a rather rare phenomenon (hint: take into account the slides about the Solow model and those about the debate concerning unconditional convergence.

The technology gap and the external constraint to growth in developing countries. Try todescribe the pillars of those heterodox economic theories suggesting that the development process of developing countries is vitally constrained by the type of trade relations developed
with developed countries and the need to “set the external balance right” (hint: look at the slides about the fundamental Thirlwall model and the heterodox critique to mainstream growth

The role of state intervention in the economy as a promoter of growth and industrialization in developing countries. Try to provide a critical literature review on the pro and cons of protectionist measures and of import-substituting-industrialization (ISI) as initially theorised by Latin American structuralism (hint: discuss what went well or what wrong, if any, with ISI strategy by taking into account both the entrench mainstream critique to ISI and state intervention as well as the internal structuralist criticism.

Developing countriesin the world economy according to the dependency theory. Try to outline and critically analyse the main points raised by the dependency theory in the 1960s and 1970s, as well as its points of connection and departure with respect to the structuralist theory (hint:
use the slides on dependency theory as starting point of your analysis.

What went wrong with the Harrod-Domar model when applied to developing countries?

Why there is a need for a Big Push in developing countries? Provide a critical analysis of the contributions explaining the possible economic mechanisms giving rise to perverse externalities among economic actors in developing countries, and eventually generating poverty (or
underdevelopment) traps. Try to explain how these mechanisms could justify exceptional economic stimuli from the public sector to get rid of these traps themselves. Which types of “exceptional economic stimuli” have been suggested by contending strands of literature?

Agricultural development and economic growth. Try to analyse the different ways through which agricultural development may boost of constrain the process of economic development according to the different theories considered in this module (hint: pay attention to the very
original version of the Lewis model, to its criticisms, as well as to the set of slides related to agricultural development more specifically.

The several aspects of the natural resource curse in developing countries. Try to analyse how the so-called “natural resource curse” could manifest itself in developing countries and the possible ways out (hint: pay attention to the several possible declinations the natural resource
curse has taken through the economic literature on this topic.

Inequality and economic development. Try to analyse the different theories that have put emphasis on the possible relationship between inequality and economic development: the possible endogenous nature of inequality the Kuznets curve); the positive or negative effects of increasing inequality on growth; the relationship between inequality, the concentration of political power, the productive structure and economic development (hint: consider again some of the material about natural resources and inequality in developing countries, as well as the discussion about “institutions, inequality and economic development.

The effects of financial liberalization in developing countries account to both mainstream and heterodox models. Try to analyse which are the expected consequences of financial integration of developing countries in the global financial market according to both mainstream models and the heterodox critique. Try to analyse whether a consensus has been found among different schools of thought about the effects of (some type of) capital flows on the development process of developing countries (hint: give a look to the abundant material uploaded onto Moodle about financialization and the Dutch disease, as well as financial integration and financial crises in developing countries. This is the last topic of this module. Since that it won’t be discussed before the submission deadline for this assignment, better to discuss in advance this possible choice with the lecturer.