topics in economic growth and international integration - 2008-2009

syllabus

(last updated 03Dec08)

presentation slides 1

presentation slides 2

presentation slides 3

presentation slides 4

presentation schedule for December 9

readings

1.   Basics of empirical economic growth

Convergence debate, proximate and ultimate sources of growth

Mankiw, N. Gregory, David Romer, and David N. Weil (1992). “A contribution to the empirics of economic growth”, Quarterly Journal of Economics, 107: 407–437.

Klenow, Peter J., and Andres Rodriguez-Clare (1997). “The Neoclassical revival in Growth Economics: Has It Gone Too Far?”, NBER Macroeconomics Annual, 73-103.

Sala-i-Martin, Xavier (1997). “I Just Ran Two Million Regressions”, American Economic Review, 87(2): 178-183.

Doppelhofer, Gernot, Ronald Miller and Xavier Sala-i-Martin (2004). “Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach”, American Economic Review, 94(4): 813-835.

Income levels and development accounting

Hall, Robert, and Charles I. Jones (1999). “Why Do Some Countries Produce So Much More Output per Worker Than Others?”, Quarterly Journal of Economics, 114(1): 83-116.

(*) Caselli, Francesco (2005), “Accounting for Cross-Country Income Differences”, Handbook of Economic Growth, edited by P. Aghion and S. Durlauf.

World income distribution

Acemoglu, Daron, Simon Johnson and James A. Robinson (2002). “Reversal Of Fortune: Geography And Institutions In The Making Of The Modern World Income Distribution”, Quarterly Journal of Economics, 117(4): 1231-1294.

Sala-i-Martin, Xavier (2006). “The World Distribution of Income: Falling Poverty and ... Convergence, Period”, Quarterly Journal of Economics, 121(2): 351-397.

Measurement issues

Gollin, Douglas (2002). “Getting Income Shares Right”, Journal of Political Economy: 110 (2), 458–474.

Neary, J. Peter (2004). “Rationalizing the Penn World Table: True Multilateral Indices for International Comparison of Real Income”, American Economic Review, 94 (5): 1411–1428.

Structural change and volatility

(*) Imbs, Jean, and Romain Wacziarg (2003). “Stages of Diversification”, American Economic Review, 93(1): 63-86.

(*) Koren, Miklos, and Silvana Tenreyro (2007). “Volatility and Development”, Quarterly Journal of Economics, 122 (1): 243-287.

Acemoglu, Daron and Veronica Guerrieri (2008). “Capital Deepening and Non-Balanced Economic Growth”, Journal of Political Economy, 116 (3): 467-498.

Di Giovanni, Julian, and Andrei A. Levchenko (forthcoming). “Trade Openness and Volatility”, Review of Economics and Statistics.

Batista, Catia, and Jacques Potin (2007). “Stages of Diversification and Capital Accumulation”, Oxford Working Paper 357.

Ventura, Jaume (1997). “Growth and Interdependence”, Quarterly Journal of Economics, 112: 57-84.

Acemoglu, Daron, and Jaume Ventura (2002). “The World Income Distribution”, Quarterly Journal of Economics, 117: 659-94.

Empirical Debate

Jeffrey D. Sachs and Andrew Warner (1995). “Economic Reform and the Process of Global Integration”, Brookings Papers on Economic Activity, 1-118.

Frankel, Jeffery, A., and David Romer (1999), “Does Trade Cause Growth?”, American Economic Review, 89 (3): 379–399.

Rodriguez, Francisco, and Dani Rodrik (2000). "Trade Policy and Economic Growth: A Skeptic’s Guide to the Cross-National Evidence", NBER Macroeconomics Annual, 15: 261-325.

Rodrik, Dani (2006). “Goodbye Washington Consensus, Hello Washington Confusion? A Review of the World Bank’s Economic Growth in the 1990s: Learning from a Decade of Reform”, Journal of Economic Literature, 44 (December): 973–87.

Wacziarg, Roman, and Karen Horn Welch (2008). “Trade Liberalization and Growth: New Evidence”, World Bank Economic Review.

(*) Estevadeordal, Antoni and Alan Taylor (2008). “Is the Washington Consensus Dead? Growth, Openness, and the Great Liberalization, 1970s-2000s”, NBER Working Paper 14264.

(*) Romalis, John (2007). "Market Access, Openness and Growth", NBER Working Paper 13048.

Billmeier, Andreas and Tommaso Nannicini (2007). “Trade Openness and Growth: Pursuing Empirical Glasnost”, IMF wp07156.

Historical Evidence

Kevin O’Rourke (2000). “Tariffs and Growth in the Late 19th Century”, Economic Journal 110: 456-483.

Clemens, Michael, and Jeffrey Williamson (2004). “Why did the tariff growth correlation change after 1950?” Journal of Economic Growth, 9: 5-46.

Clark, Gregory, Kevin O'Rourke, and Alan M. Taylor (2008). “Made in America? The New World, the Old, and the Industrial Revolution”, NBER Working Paper 14077. (Forthcoming in American Economic Review Papers and Proceedings.)

Lehmann, Sybille and Kevin O’Rourke (2008).  “Structure of tariffs and growth in the late 19^th century”, Working Paper, Trinity College Dublin.

Trade and Productivity

(*) Melitz, Marc J. (2003). “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”, Econometrica, 71: 1695-1725.

(*) Bernard, Andrew B., Jonathan Eaton, J. Bradford Jensen, and Samuel Kortum (2003). “Plants and Productivity in International Trade”, American Economic Review, 93(4), 2003, 1268-1290.

Feenstra, Robert C., and Hiau Looi Kee (2004). "Export Variety and Country Productivity", NBER Working Paper 10830.

Capital Flows: Puzzles

(*) Obstfeld, Maurice, and Kenneth Rogoff (2000). “The Six Major Puzzles in International Macroeconomics: Is there a Common Cause?” in Ben Bernanke and Kenneth Rogoff (eds.), NBER Macroeconomics Annual.

Feldstein, Martin, and Charles Horioka (1980). “Domestic Saving and International Capital Flows”, Economic Journal, 90.

(*) Lucas, Robert E. (1990). “Why Doesn’t Capital Flow from Rich to Poor Countries?” American Economic Review.

(*) Gourinchas, Pierre-Olivier, and Olivier Jeanne (2007). “Capital Flows to Developing Countries: the Allocation Puzzle”, NBER Working Paper13602.

Caselli, Francesco, and James Feyrer (2007). “The Marginal Product of Capital”, Quarterly Journal of Economics, 122 (2): 535-568.

Trefler, Daniel (1993) “International Factor Price Differences: Leontieff Was Right!”, Journal of Political Economy, 101: 961-987.

Kortum, Samuel, and Jonathan Eaton (2001). “Trade in Capital Goods”, European Economic Review, 45(7), 1195-1235.

Batista, Catia, and Jacques Potin (2007). “International Specialization and the Marginal Product of Capital”, Oxford Working Paper No. 357.

Reinhart, Carmen M. and Kenneth S. Rogoff (2004). “Serial Default And The 'Paradox' Of Rich-To-Poor Capital Flows”, American Economic Review, 94(2): 53-58.

(*) Alfaro, Laura, Sebnem Kalemli-Ozcan, and Vadym Volosovych (2008). "Why Doesn’t Capital Flow From Rich to Poor Countries? An Empirical Investigation", Review of Economics and Statistics, 90(2): 347-368.

Kalemli-Ozcan, Sebnem, Ariell Reshef, Bent E. Sorensen, and Oved Yosha (2005), “Net Capital Flows and Productivity: Evidence from U.S. States”, NBER Working Paper 11301.

Kray, Aart, Norman Loayza, Luis Serven, and Jaume Ventura, (2005) “Country Portfolios”, Journal of the European Economic Association, 3(4):914–945.

Lane, Philip R., and Gian Maria Milesi-Ferretti. (2003). “International Financial Integration”, International Monetary Fund Staff Paper 50(S): 82-113.

Lane, Philip R., and Gian Maria Milesi-Ferretti. (2007). “The External Wealth of Nations Mark II: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970–2004”, Journal of International Economics, 73(2): 223-250. 

Capital Flows and Economic Growth

(*) Prasad, Eswar S., Raghuram G. Rajan and Arvind Subramanian (2007). “Foreign Capital and Economic Growth”, NBER Working Paper 13619.

Alfaro, Laura, and Eliza Hammel (2007). “Capital Flows and Capital Goods”, Journal of International Economics, 72 (1): 128-150.

(*) Gourinchas, Pierre-Olivier, and Olivier D. Jeanne (2006). "The Elusive Gains from International Financial Integration", Review of Economic Studies, 73(3): 715–741.

Stokey, Nancy L. (1996). "Free Trade, Factor Returns, and Factor Accumulation", Journal of Economic Growth, 1: 421-447.

Batista, Catia (2007). “Joining the EU: Capital Flows, Migration and Wages”, Oxford Working Paper 342.

(*) Javorcik, Beata Smarzynska (2004). “Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages”, American Economic Review, 94 (3): 605–627.

(*) Alfaro, Laura, Areendam Chanda, Sebnem Kalemli-Ozcan, and Selin Sayek (2004). "FDI and Economic Growth: The Role of Local Financial Markets", Journal of International Economics 64(1).

(*) Kugler, Maurice (2006). “Spillovers from Foreign Direct Investment: Within or Between Industries?”, Journal of Development Economics, 80(2): 444-477.

Labor Flows: Puzzles

Hunt, Jennifer (2007). “Staunching Emigration from East Germany: Age and the Determinants of Migration”, Journal of the European Economic Association, 4(5): 1014-1037.

(*) Batista, Catia (2008). “Why Doesn’t Labor Flow From Poor To Rich Countries? Micro Evidence from the European Integration Experience”, Oxford Working Paper 402.

Labor Flows: Interactions with Trade and Capital Flows

Gould, David M. (1994). “Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows”, Review of Economics and Statistics, 76(2): 302-16.

Rauch, James, and Vitor Trindade (2002). “Ethnic Chinese Networks in International Trade”, Review of Economics and Statistics, 84(1): 116-130.

(*) Combes, Pierre-Philippe, Miren Lafourcade, and Thierry Mayer (2005). “The trade-creating effects of business and social networks: evidence from France”, Journal of International Economics, 66: 1-29.

Buch, Claudia, Jörn Kleinert and Farid Toubal (2006). “Where Enterprises Lead, People Follow? Links Between Migration and German FDI”, European Economic Review, 50(8): 2017-2036.

Javorcik, Beata, Çaglar Özden, Mariana Spatareanu and Cristina Neagu (2007). “Migrant Networks and Foreign Direct Investment”, World Bank Working Paper 4046.

(*) Kugler, Maurice and Hillel Rapoport (2007). “International Labor and Capital Flows: Complements or Substitutes?”, Economics Letters 92 (2): 155-162.

Labor Flows and Economic Growth: Brain Drain vs. Brain Gain

Bhagwati, J., and K. Hamada (1974). “The brain drain, international integration of markets for professionals and unemployment: a theoretical analysis”, Journal of Development Economics, 1: 19-42.

Mountford, Andrew (1997). “Can a brain drain be good for growth in the source economy?”, Journal of Development Economics, 53: 287-303.

Beine, Michel, Frederic Docquier, and Hillel Rapoport (2001). “Brain drain and economic growth: theory and evidence”, Journal of Development Economics, 64: 275-289.

Docquier, Frédéric, and Abdeslam Marfouk (2006). “International Migration by Education Attainment, 1990–2000”, in Ozden and Schiff (2006).

Beine, Michel, Frederic Docquier, and Hillel Rapoport (2008). “Brain drain and LDCs’ growth: winners and losers”, Economic Journal, 118: 631-652.

(*) Beine, Michel, Cecily Defoort, and Frederic Docquier (2007). “A Panel Data Analysis of The Brain Gain”, Working Paper, Université Catholique de Louvain.

(*) Batista, Catia, Aitor Lacuesta, and Pedro C. Vicente (2007). “Brain Drain or Brain Gain? Micro Evidence from an African Success Story”, IZADiscussion Paper 3055.

questions or comments? email me at cpbatista@gmail.com