WEEK # TOPICS readings
1 Theory of Development: Closed Economy

Smith, Adam. Chapter 1 “Of the Division of Labour,” chapter 2 “Of the Principle which Gives Occasion to the Division of Labour,” and chapter 3 quot;That the Division of Labour is Limited by the Extent of the Market." In The Wealth of Nations, Book I-III& (1776). New York, NY: Penguin, New Edition, 1970. ISBN: 9780140400120.

Lewis, W. Arthur. “Economic Development With Unlimited Supplies of Labour.” Manchester School of Economics and Social Studies 22, no. 2 (1954). And reprinted in Agarwala, A. N., and S. P. Singh, eds. The Economics of Underdevelopment. New York, NY: Oxford University Press, 1979. ISBN: 9780195606744.

2 Theory of Development: Open Economy

Ricardo, David. “On Foreign Trade.” Chapter 7 in The Principles of Political Economy and Taxation. Vol. 1, 1817. Amherst, NY: Prometheus Books, 1996. ISBN: 9781573921091.

Krugman, Paul R., and M. Obsfeldt. Chapter 2 “Labor Productivity and Comparative Advantage: The Ricardian Model,” and chapter 4 “Resources and Trade: The Heckscher-Ohlin Model.” In International Economics. 6th ed. Reading, MA: Addison-Wesley, 2002. ISBN: 9780201770377.

3-4 Problems of Underdevelopment


Crouzet, F. “Western Europe and Great Britain: ‘Catching Up’ in the First Half of the Nineteenth Century.” In Economic Development in the Long-Run. Edited by A. J. Youngson. London, UK: Macmillan Press, 1973, pp. 98-125. ISBN: 9780312228903.


Baran, Paul A. The Political Economy of Growth. New York, NY: Monthly Review Press, 1957.

Transactions cost

North, D. C. “Institutions, Transactions Costs and Economic Growth.” Economic Inquiry 25 (1987).

———. “Economic Performance Through Time.” American Economic Review 84 (1994).

Market Failure

Stiglitz, J. “Markets, Market Failures and Development,” American Economic Review 79 (1989).

Knowledge-Based Assets

Amsden, A. H. The Rise of “The Rest”: Challenges to the West from Late-Industrializing Economies. New York, NY: Oxford University Press, 2003. Chapter 1. ISBN: 9780195170597.

5-6 History of Late Industrialization

Amsden, A. H. Chapter 2 “The Handloom Weaver’s Bones”, chapter 3 “Rise of “ The Trials of Technology Transfer”, chapter 4 “The Three-Pronged Investment”, and chapter 5 “Manufacturing Experience Matters.” In Rise of “The Rest”. New York, NY: Oxford University Press, 2003. ISBN: 9780195170597.

Clark, G. “Why Isn’t the Whole World Developed? Lessons from the Cotton Mills.” Journal of Economic History (March 1987).

Wilkins, M. “Efficiency and Management: A Comment on Gregory Clark’s ‘Why Isn’t the Whole World Developed?’” Journal of Economic History (December 1987).

Albert, B. South America and the World Economy from Independence to 1930. London, UK: Macmillan Press, 1983. ISBN: 9780333342237.

Alejandro, C. Diaz. “No Less than One Hundred Years of Argentine Economic History Plus Some Comparisons.” Comparative Development Perspectives. Edited by G. Ranis, et al. Boulder, CO: Westview Press, 1983. ISBN: 9780865319844.

Morris, M. D. “The Growth of Large Scale Industry to 1947.” The Cambridge Economic History of India. Vol 2. Edited by D. Kumar and M Desai. Cambridge, UK: Cambridge University Press, 1983. ISBN: 9780521228022.

7 Government Intervention

Amsden, A. H. Rise of “The Rest”. New York, NY: Oxford University Press, 2003. Chapter 1, pp. ADD and chapter 6. ISBN: 9780195170597.

Fishlow, A. “The Latin American State.” Journal of Economic Perspectives 4 (1990).

Evans, P. Embedded Autonomy. Princeton, NJ: Princeton University Press, 1995. ISBN: 9780691037363.

Amsden, A. H., ed. “The East Asian Miracle Report.” World Development. Special Issue (April 1994).

Recommended Readings

“World Bank Policy Research Reports.” The East Asian Miracle: Economic Growth and Public Policy. Washington, DC: World Bank Publications, 1993. ISBN: 9780195209938.

Fishlow, A., et. al., eds. Miracle or Design: Lessons from the East Asian Experience. Washington, DC: Overseas Development Council, 1996. ISBN: 9781565170155.

8 Technological Capability Building

Nelson, R. R. “Innovation and Economic Development: Theoretical Retrospect and Prospect.” Technology Generation in Latin American Manufacturing Industries. Edited by J. M. Katz. London, UK: Macmillan Press, 1987. ISBN: 9780312790028.

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. New York, NY: Praeger Publications, 1985. ISBN: 9780275902216.

David, P. A. “Rethinking Technology Transfers: Incentives, Institutions and Knowledge-based Industrial Development.” In Chinese Technology Transfer in the 1990s: Current Experience, Historical Problems and International Perspectives. Edited by C. Feinstein and C. Howe. Cheltenham, UK: Edward Elgar Publishing, 1997. ISBN: 9781858982458.

9 Production Capability: The Steel Industry

Brazil: Dahlman, C., and F. V. Fonseca. “From Technological Dependence to Technological Development: The Case of Usiminas Steelplant in Brazil.” In Technology Generation in Latin American Manufacturing Industries. Edited by J. M. Katz. London, UK: Macmillan Press, 1987. ISBN: 9780312790028.

India: Lall, S. Chapter on steel in Learning to Industrialize: The Acquisition of Technological Capability by India. Portland, OR: International Specialized Book Service, Inc., 1988. ISBN: 9780333433751.

Korea: Amsden, A. H. “The Triumph of Steel.” Chapter 12 in Asia’s Next Giant. New York, NY: Oxford University Press, 1989. ISBN: 9780195058529.

10 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).
11 Innovation Capability and Spillovers

Mathews, J. K. “A Silicon Valley of the East: Creating Taiwan’s Semiconductor Industry” California Management Review 39(1997).

(REF) Hobday, M. Innovation in East Asia. 1995.

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

Amsden, A. H., A. Goto, and T. Tschang. “Classification of R&D Activity for International Comparisons (With a Case Study of Singapore).” Asian Development Bank Institute Working Paper (2000).

Blomstrom, M., and A. Kokko. “Foreign Investment as a Vehicle for International Technology Transfer.” In Creation and Transfer of Knowledge: Institutions and Incentives. Edited by G. Barba Navaretti, et. al. Berlin, Germany: Springer-Verlag, 1998. ISBN: 9783540644262.

Recommended Readings

Hobday, M. Innovation in East Asia: The Challenge to Japan. Cheltenham, UK: Edward Elgar Publishing, 1995.

Lim, Y. Public Policy for Upgrading Industrial Technology in Korea (1999).

12-13 Firm Formation

Amsden, A. H. Chapter 8 “National Leaders,” chapter 9 “From Mechanisms of Control to Mechanisms of Resistance.” In Rise of “The Rest”. New York, NY: Oxford University Press, 2003. ISBN: 9780195170597.

Barbero, Ines M., “Argentina: Industrial Growth and Enterprise Organization, 1880s-1980s.” In Big Business and the Wealth of Nations. Edited by A. Chandler, F. Amatori, and T. Hikino. Cambridge, UK: Cambridge University Press, 1997. ISBN: 9780521481236.

Shapiro, H. “Determinants of Firm Entry into the Brazilian Automobile Manufacturing Industry, 1956-1968.” Business History Review (Winter 1991).

Hoshino, T. “Indigenous Corporate Groups in Mexico: High Growth and Qualitative Change in the 1970s to the Early 1980s.” Developing Economies 28 (1990).

Garrido, C. “National Private Groups in Mexico, 1987-1993.” CEPAL Review (August 1994).

Agarwala. “The Development of Managerial Enterprises in India.” In Development of Managerial Enterprise. Edited by K. Kobayashi and H. Morikawa. Tokyo, Japan: University of Tokyo Press, 1986. ISBN: 9780860083979.

Suehiro, A. “Modern Family Business and Corporate Capability in Thailand: A Case Study of the CP Group.” Japanese Yearbook on Business History 14 (1997).

Hiroyoshi, K. “Indonesian Business Groups and Their Leaders.” Asian Cultural Studies 28 (1989).

Amsden, A. H. “Korea: Enterprising Groups and Entrepreneurial Government.” In Big Business and the Wealth of Nations. Edited by A. Chandler, F. Amatori, and T. Hikino. Cambridge, UK: Cambridge University Press, 1997. ISBN: 9780521481236.

Smyth R. “Should China be Promoting Large-Scale Enterprises and Enterprise Groups?” World Development 28 (2000).

Amsden, A. H., and W. W. Chu. “The Maturation of an Emerging Economy: Taiwan’s Transformation_.”_ 2000.

14-15 Trade and Foreign Investment

Baldwin, R. E. “The Case Against Infant-Industry Tariff Protection.” Journal of Political Economy (June 1977).

Amsden, A. H. “Selective Seclusion.” Chapter 7 in Rise of “The Rest”. New York, NY: Oxford University Press, 2003. ISBN: 9780195170597.

Bruton, H. J. “A Reconsideration of Import Substitution.” Journal of Economic Literature 36 (1998).

Bhagwati, J. N. “Export Promotion as a Developmental Strategy.” In Economic Policy and Development: New Perspectives. Edited by T. Shishido and R Sato. Dover, MA: Auburn House, 1985. ISBN: 9780865691209.

Dollar, D. “Outward-Oriented Developing Countries Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985.” Economic Development and Cultural Change 40 (1992).

Helleiner, G. K. Trade, Trade Policy and Industrialization Reconsidered. Helsinki, Finland: United Nations Publications, 1996. ISBN: 9789529520299.

Hymer, S. The International Operations of National Firms: A Study of Direct Foreign Investment. Cambridge, MA: MIT Press, 1976. ISBN: 9780262080859.

Lall, S., ed. “Multinationals and Technology Development in Host Countries.” In Transnational Corporations and Economic Development. London, UK: Routledge, 1996. ISBN: 9780415141109.

Fritsch, W., and GHB Franco. “Foreign Direct Investment and Patterns of Industrialization and Trade in Developing Countries: The Brazilian Experience.” In Trade Policy, Industrialization, and Development: New Perspectives. Edited by G. K. Helleiner. Oxford, UK: Clarendon Press, 1992. ISBN: 9780198283591.

Schive, C., and J-H Tu. “Foreign Firms and Structural Change in Taiwan.” In Direct Foreign Investment in Asia’s Developing Economies and Structural Change in the Asia-Pacific Region. Edited by E. D. Ramstetter. Boulder, CO: Westview Press, 1991. ISBN: 9780813310794.

Tran, V. T. “Foreign Capital and Technology in the Process of Catching Up by the Developing Countries: the Experience of the Synthetic Fiber Industry in the Republic of Korea.” The Developing Economies 26 (1988).

Recommended Readings

Krugman, P., and L. Taylor. “Contractionary Effects of Devaluation.” Journal of International Economics 8 (1978).

16 Wrapping Up

Amsden, A. H. Chapter 9, ADD, and chapter 10 ““The Rest” Will Rise Again.” In Rise of “The Rest”. New York, NY: Oxford University Press, 2003. ISBN: 9780195170597.

Gerschenkron, A. Economic Backwardness in Historical Perspective: A Book of Essays. Cambridge, MA: Belknap Press of Harvard University Press, 1962. ISBN: 9780674226005.

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