23569 Economic Growth, Development and Sustainability
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Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): (23567 Intermediate Microeconomics OR 25567 Intermediate Microeconomics) AND (23568 Intermediate Macroeconomics OR 25568 Intermediate Macroeconomics)
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Anti-requisite(s): 25569 Economic Growth and Development
Description
Economic growth has played an important role in raising living standards since the industrial revolution in a number of countries around the world but that growth and its impact on human welfare, has been very unevenly distributed. Many countries continue to experience unacceptably low standards of living and are in need of significant economic development. At the same time, many in the more developed economies are calling for a re-think of the continuous emphasis placed on economic growth given the link between growth and climate change.
This subject explores the nature of economic growth, the various explanations economists have offered for the process of growth, and the relationship between growth and economic development, particularly in poorer countries. It examines the potential limits on growth, and considers what a sustainable and globally just approach to growth might look like with careful attention paid to the development needs of poorer nations.
Subject learning objectives (SLOs)
| 1. | outline the problems associated with large differences in material prosperity across the globe |
|---|---|
| 2. | analyse the determinants of economic growth |
| 3. | evaluate the range of strategies designed to foster economic development |
Contribution to the development of graduate attributes
The subject contributes to the aim of preparing students to commence a fulfilling and effective career in business, especially in the economics profession. The subject’s specific contributions are to enable students to develop their knowledge and understanding of the theory and applications of economic growth and country specific levels of economic development.
Teaching and learning strategies
The subject will employ a traditional lecture/tutorial-based teaching strategy. Lecturer-student interaction during lecturers and tutorials will be strongly encouraged.
Content (topics)
- Revision of and extensions to the Solow Growth Model;
- The Romer Model of endogenous growth and technical progress;
- Alternative approaches to modelling growth;
- The relationship between growth and income distribution;
- Potential limits to growth and the issue of sustainability and resource constraints;
- The nature of economic development and the relationship between sustainability, development, growth, poverty and inequality;
- Microeconomic policies to assist growth, development and sustainability;
- The role of international institutions such as the World Bank, the International Monetary Fund and the United Nations in facilitating sustainability, growth and development esp. the UN Sustainable Development Goals
Assessment
Assessment task 1: Homework and/or in-class quizzes (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 40% |
| Criteria: | *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 2: Final Exam (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 60% |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
Economic Development, by Michael P. Todaro and Steven C. Smith, 11th Edition.
References
Jones C.I. & Vollrath D. (2013), Introduction to Economic Growth, New York: W.W. Norton.
Aghion P. & Howitt P.W. (2008), The Economics of Growth, Cambridge, MA: MIT Press.
Todaro M.P. & Smith S.C. (2023), Development Economics, 13th Edition, New York: Pearson.
Cohen S. (2023), Environmentally Sustainable Growth: A Pragmatic Approach, New York: Columbia University Press.
Banerjee A.V. & Duflo E. (2012), Poor Economics: The Surprising Truth about Life on Less Than $1 a Day, London: Penguin Books.
Stiglitz J.E. (2016), “How to Restore Equitable and Sustainable Economic Growth in the United States”, American Economic Review: Papers & Proceedings, 106 (5), pp.43-47.
Deaton A.(2010), “Understanding the Mechanisms of Economic Development”, Journal of Economic Perspectives, 24 (3), pp.3-16.
Foxon T.J., Köhler J., Michie, J. & Oughton C. (2013), “Towards a New Complexity Economics for Sustainability”, Cambridge Journal of Economics, 27, pp.187-208.