Advanced Development Economics - ECON3005

Shows the relationship between low income countries and tariffs.
Found that there is a positive relationship between tariffs and growth for countries below a certain income threshold, (tariffs are a high proportion of revenue paired with low growth). They found a negative relationship for countries above a particular income threshold.

Ackah and Morrisey (2007)

Estimates the relationship between trade openness and growth in SSA.
They found that economic growth had a negative effect on trade openness whilst trade openness had a significant positive effect on growth.

Brueckner and Lederman (2015)

Shows the relationship between low income countries and tariffs.
Found that there is a positive relationship between tariffs and growth for countries below a certain income threshold, (tariffs are a high proportion of revenue paired with low growth). They found a negative relationship for countries above a particular income threshold.

Ackah and Morrisey (2007)

Estimates the relationship between trade openness and growth in SSA.
They found that economic growth had a negative effect on trade openness whilst trade openness had a significant positive effect on growth.

Brueckner and Lederman (2015)

Explores trade liberalisation in Africa and its impetus.

Most African countries have implemented significant liberalisation of trade since the 1980's. This change gained lots of momentum in the 1990's. Several factors contributed to this shift, including changes in global economic trends, international pressure from organizations like the International Monetary Fund (IMF) and the World Bank, and the realisation among African nations that protectionist policies were hindering economic growth.

Jones et al (2011)

Explores Africa's recent growth, absent of structural change and puts into question the sustainability of this growth.

SSA has grown over the past decade, however it has shown little structural growth.
Now that China, along with advanced and emerging economies are beginning to slow down, it puts into question the sustainability of Africa's growth.
The traditional engines for rapid growth and convergence, structural change and industrialisation is operating below full power.

We can expect a moderate 2% growth rate if external factors don't break down, also, convergence is possible as advanced economies are on a slowdown.
The 'African Growth Miracle' could be lead by services or agriculture, although this is something we are yet to see.

Rodrick (2016)

Explore data across the 70's and 80's that show a shocking relationship between natural resources and growth.

Find 'The curse of natural resources.'
Data between 1970-1989 shows that countries with a high % of GDP from commodities exhibit dampened growth.
Difficult to explain growth trend with other variables.
Also, resource rich countries tend to be high-price economies, thus they miss out on export-led growth.

Sachs and Warner (2001)

Explores the role of institutions in resource rich countries. Differentiating the outcome of 'grabber friendly' and 'producer friendly.' Highlighting the decisive nature of institutions in the resource curse.

Proposes that resource rich countries produces growth losers and growth winners.
Differences between the two derives from discrepancies in the quality of institutions.
Grabber friendly institutions and more natural resources pushes aggregate income down.
Producer friendly institutions and more natural resources pushes aggregate income up.
Institutions are decisive for the resource curse.
This contrast the most popular "Dutch Disease" theory

Mehlum et al (2006)

Delves into the effects of commodity price downturns and the effect of this on civil wars in Sub-Saharan Africa.

Finds that civil wars are more likely to break out during a commodity price downturn. A similar relation is found with the economic downturn of OECD export destinations. Data supports this.

For data between 1989 and 2006, a 20% dip in yty commodity prices increases the probability of civil war by 2.8%. This should be considered in tandem with state capacity.

*Conflict can increase in both price directions!

Bruckner and Ciccone (2010)

Analyses the provision of public goods amongst countries with different levels of ethnic diversity. (Cross-country regression).

Where there is more ethnic diversity, the provision of public goods is diminished.
Low schooling, political instability, under developed financial systems etc. is associated with low growth.

Easterly and Levine (1997)

Explains the mechanics of ethnic diversity and low public goods provision with 3 "families" of mechanisms.

"Preferences", "Technology" and "Strategic selection."

Habyarimana et al (2007)

Focusses on ethnicities that were partitioned and investigates the associated rate of conflict. Positive relationship demonstrated.

Michalopolous et al (2016)

Looks into European mortality rates and what that meant for long run growth in those countries.

Exploits the differences in European mortality rates to estimate the effect of institutions on economic performance.
Where Europeans faced high mortality rates, they could not settle and were more likely to set up extractive institutions.
These institutions persisted to the present.
They also estimate large effect of institutions on income per capita.

Acemoglu et al (2001)

The reversal of fortunes hypothesis.

Countries that were colonised by European powers in the past 500 years that were relatively rich in 1500 are now relatively poorer.
Documented this reversal using data on urbanisation patterns and population density.
Argues against the link between economic development and geography as the European involvement seems to have caused an institutional reversal.

Acemoglu et al (2002)

Explores the effect of the indirect rule and the constraints of Chief power on economic outcomes.

Looking at chiefdoms in Sierra Leone, power was given by British Colonial authorities and the local chiefdom remained.

The indirect rule creates rent-seeking opportunities at the cost of people.
Found that accountability of local chiefs is dependent on the number of ruling families.
(More families = more competition = less rent seeking)

Acemoglu et al (2014)

Studies the extractive legacy of colonial economies and the market distortions that last beyond colonial control.

Notion that colonial interest groups always push for action that allows white elites to extract the largest possible payoff.

For example. in Kenya, lots of White Farmers settled there and the colonial government created policy to benefit them disproportionately, such as cartelisation and land expropriation.
This market distortion survived the end of formal colonialism; leading to persisting inequality and social conflict in these countries.

Bates (1983)

Study on the role of the Tse-Tse fly on African development.
Tse-Tse fly gives sleeping sickness to humans and kills livestock.
Likely responsible for the lack of agricultural capital accumulation and limited state centralisation.

Created a suitability index, and found the presence of the fly correlates with agricultural suitability.
Higher Tse-Tse fly suitability leads to worse historical economic outcomes.
(Less productive, lower population density and centralisation.)

Alsan (2015)

Investigates the role of policy and increased savings rate as a contributor of the "East Asian Miracle."

Looks into the role of policy, high level of savings led to investment.
Proposes that high level of savings led to investment and thus growth.
This was aided through; macro-stability, creation of institutions that promoted savings, compulsory savings schemes and ensuring financial development.

Stiglitz (1996)

Identifies the role of culture as a driver of growth.

Confucianism was widespread in Japan, Singapore, China, South Korea etc.
A philosophical school that promoted values such as frugality, solidarity, harmony and values education.
Helps to explain imitation (adoption of technology) and high savings rate.

Liang (2010)

Identifies productivity improvement over investment driven growth in China.

Suggests that growth wasn't investment driven, instead driven by improvements in productivity as capital-to-output ratio remained relatively constant.
Chinas success is attributed to gradual and persistent institutional changes and policy reforms that have reduced distortions and improved economic incentives.

Zhu (2012)

The "California School" impression of the Great Divergence.

Suggests that China and Europe were very similar throughout the mid-Qing period. (1644-1911)
Divergence occurred at the start of the British Industrial Revolution. Champions similarities in cultural and institutions.

Pomeranz (2000)

Explores Industrial policy in South Korea. Focussing on HCI during the Park regime.

Focus on the Heavy Chemicals and Industry drive between 1973 and 1979.
Studies the sharp introduction and withdrawal of HCI trade policy.
Promoted the evolution of directly treated industries with indirect benefits downstream.
The benefits continued to persist after the policy withdrawal in 1979 with a shift to higher value add production.
Highlights the importance of state institutions and policy reform.

Lane (2019)

Investigates the origins of mistrust in Africa and its roots in the slave trade.

Found that regions more deeply involved in the Slave trade exhibited higher levels of mistrust between people.
Mistrust decays social capital.

Nunn and Wantchekon (2011)

Highlights the effect of coal access across regions of Europe.

Found that coal access had a strong positive correlation with growth during the industrial revolution. The most prominent examples were highlighted in the North West of England, Belgium and the Netherlands.

Fernihough and O'Rourke (2014)

ER Crisis Model (Generation 1) i.e. Krugman Crisis model had less than 50% accurate predictive power.
It predicted East Asian crisis shouldn't of happened.

Kaminsky et al 1998

Botswana case study.

Since independence rapid growth, Leith (2005), says Botswana haven't suffered effects of re-patrimonialism and no political centralisation and dismantling of democracy.
The state has provided public goods and secure efficient property rights, experienced a different path of institutional development than the norm of Africa.
By chance, the 8 Tswana states ended up controlling a single independent nation, they determined national institutions without conflict. The elite interest heavily invested into ranching.

Botswana shows what could have happened to Africa without colonisation.

Acemoglu and Robinson (2010)

Ghana Railroads - Get Joe to explain quickly

Jedwab and Moradi (2016)