11.167 | Spring 2004 | Undergraduate

Economic Development & Technical Capabilities


Required readings are divided according to course segments. Additional sub-topics for the readings are also presented.

I. Economic Development

Firm Formation and Technological Capability Building

Amsden, A. H. The Rise of ‘The Rest.’ New York: Oxford University Press, 2001, ch. 3, 6, 8.

Nelson, R. R. “Innovation and Economic Development: Theoretical Retrospect and Prospect.” Technology Generation in Latin American Manufacturing Industries. Edited by J. M. Katz. 1987.

Westphal, L., et. al. “Reflections on the Republic of Korea’s Acquisition of Technological Capability.” International Technology Transfer. Edited by Nathan Rosenberg, and C. Frischtak. 1985.

Production Capability: The Steel Industry


Dahlman, C., and F. V. Fonseca. “From Technological Dependence to Technological Development: The Case of Usiminas Steelplant in Brazil.” Technology Generation in Latin American Manufacturing Industries. Edited by J. M. Katz. 1987.


Lall, S. Learning to Industrialize: The Acquisition of Technological Capability by India. Hampshire: Macmillan Press, 1987.


Amsden, A. H. “The Triumph of Steel.” In *Asia’s Next Giant. * New York: Oxford University Press, 1989.

Project Execution Capability

Amsden, A. H., and T. Hikino. “Project Execution Capability, Organizational Know-how and Conglomerate Corporate Growth in Late Industrialization.” Industrial and Corporate Change 3 (1994).

Amsden, A. H., and W. W. Chu. Beyond Late Development. Cambridge, MA: MIT Press, 2003, ch. 1-3.

Innovation Capability and Spillovers

Amsden, A. H., A. Goto, and T. Tschang. “Do Foreign Firms Conduct R&D in Developing Countries?” Asian Development Bank Institute Working Paper. 2000.

Blomstrom, M., and A. Kokko. “Foreign Investment as a Vehicle for International Technology Transfer.” Creation and Transfer of Knowledge: Institutions and Incentives. Edited by G. Barba Navaretti, et. al. 1998.

II. Theories and History of Underdevelopment


Diamond, J. “How Africa Became Black. Guns, Steel, Germs. New York: Norton, W. W. & Company, Inc, 1998.

Trade, Imperialism and “Primitive Accumulation”

Gallagher, J., and R. Robinson. “The Imperialism of FreeTrade.” Economic History Review, no. 1 (1953).

Alpers, E. “International Trade in the History of East and Central Africa: Some Conclusions.” Ivory and Slaves in East Central Africa. 1975.

Myint, H. “Peasant Exports and the Growth of the Money Economy”(Chapter 3), and “Mines and Plantations and the Growth of the Wage Economy”(Chapter 4). In The Economics of the Developing Countries. 1964.

Hopkins, A. G. An Economic History of West Africa. 1973, pp. 231-236.

Arrighi, G. “Labour Supplies in Historical Perspective: A Study of the Proletarianization of the African Peasantry in Rhodesia.” Journal of Development Studies 6 (1970).

Foreign Trade (again) and Foreign Investment

Kravis, I. “Trade as an Engine of Growth.” Economic Journal 80 (1970).

Crafts, N. F. R.  “Trade as an Engine of Growth: an Alternative View.” Economic Journal 83 (1973).

Auty, R. M. “Industrial Policy Reform in Six Large Newly Industrializing Countries: The Resource Curse Thesis.” World Development, no. 1 (1994).

Davis, G. A. “Learning to Love the Dutch Disease: Evidence from the Mineral Economies.” World Development, no. 10 (1995).

Cramer, C. “Can Africa Industrialize by Processing Primary Commodities? The Case of Mozambican Cashew Nuts.” World Development (July, 1999).

U. N. “Least Developed Countries and Africa.”  World Investment Report, Part IIB 1 and 2 (1997).

III. Industrialization


Bowman, M. J., and C. A. Anderson. “Concerning the Role of Education in Development.” Old Societies and New States. Edited by C. Geertz, 1963.

Psacharopoulis, G. “Returns to Investment in Education: A Global Update.” World Development, no. 9 (1994).

Bennell, P. “Rates of Return to Education: Does the Conventional Pattern Prevail in sub-Saharan Africa?” World Development, no. 1 (1996).

Appleton, S., J. Mackinnon, and B. Ndulu, et. al. “Enhancing Human Capacities in Africa.” Agenda for Africa’s Economic Renewal. 1996.

Baumol, W. J., and E. N. Wolff. “Catching Up in the Postwar Period: Puerto Rico as the Fifth ‘Tiger’?” World Development, no. 5 (1996).


Mayer, J. Globalization, Technology Transfer and Skill Accumulation in Low-Income Countries. WIDER, no. 150 (2000).

Bakuli, Luvisia D. “Pitfalls in Technology Transfer:Kenya’s Construction Industry.” World Development, no. 10 (1994).

Rouijn, H. “Acquisition of Technological Capability in Development: A Quantitative Case Study of Pakistan’s Capital Goods Sector,” World Development, no. 3 (1997).

Centeno, Vega M. “Nature and Determinants of Technical Change: The Peruvian Industrial Sector.” In Technology Generation in Latin American Manufacturing Industries. Edited by J. M. Katz. 1987.

Nordas, Kyvik H. “South African Manufacturing Industries:Catching Up or Falling Behind?.” Journal of Development Studies, no. 5 (1996).

Alcorta, L., and W. Peres. “Innovation Systems and Technological Specialization in Latin America and the Caribbean.” Research Policy 26 (1998).

Arocena, R., and J. Sutz. “Looking at National Systems of Innovation from the South.” Industry and Innovation (June 2000).


Lall, S. “Structural Problems of African Industry.” In Alternative Development Strategies in Sub-Saharan Africa. Edited by F. Stewart, and S. Wangwe. 1992.

Lall, S., F. Stewart, and B. Ndulu, et. al.,  “Trade and Industrial Policy in Africa.” In Agenda for Africa’s Economic Renewal (1996).

McCormack, D. “African Enterprise Clusters and Industrialization: Theory and Reality.” World Development (September, 1999).

Ahn, C-Y, et. al. “Tanzania.” Chapter 11 in Competition and the World Economy (1999).

Kozul-Wright, Z., and L. Stanbury. “Becoming a Globally Competitive Player: the Case of the Music Industry in Jamaica.” UNCTAD Discussion Paper no. 138 (1998).

Mourshed, M. Chapter 2 (pp. 27-42), Chapter 4 in Technology Transfer Dynamics: Lessons from the Egyptian and Indian Pharmaceutical Industries. Ph.D., MIT,1999.

Owen, Roger, and Sevkut Pamuk. Turkey (Chapter 5), Egypt (Chapter 6), Syria, Lebanon and Iraq (Chapter 7) in A History of Middle East Economies In the Twentieth Century. Part II, 1946-1990.


Tybout, J. R. “Manufacturing Firms in Developing Countries:How Well Do They Do, and Why?” Journal of Economic Literature (March 2000).

Mead, D. C., and C. Liedholm. “The Dynamics of Micro and Small Enterprises in Developing Countries.” World Development, no. 1 (1998).

McCormick, D., et. al. “Growth and Barriers to Growth Among Nairobi’s Small and Medium-Sized Garment Producers.” World Development, no. 7 (1997).

Daniels, L. “The Role of Small Enterprises in the Household and National Economy in Kenya: A Significant Contribution or a Last Resort.” World Development, no. 1 (1999).

Grosh, B., and G. Omolekae. “Mighty Oaks from Little Acorns: Can Microenterprise Serve as the Seedbed of Industrialization?” World Development, no. 12 (1996).

Amsden, A. H. “South Korea:Enterprising Groups and Entrepreneurial Government.” Big Business and the Wealth of Nations. Edited by Alfred D. Chandler, Jr., Franco Amatori, and Takashi Hikino. Cambridge, MA: Cambridge University Press, 1997.

IV. Well-being and Development

Sen, Amartya. Development as Freedom. New York: Anchor Books, 2000.