BME 3506 Development Economics

Course Code BME 3506
Course Title Development Economics
Number of Credits 5
Academic Year 3

The objective of this course is to provide students with a comprehensive knowledge of development economics that is useful in business decision-making. This course covers different problems and prospects of economic development in the developing countries. Topics considered includes; development theories and applications, contemporary models of development, poverty and inequality measurements, role of human capital, education and health in economic development, agricultural transformation and rural development. Further, it covers the topic of challenges and issues in the new millennium.

At the end of this course students should be able to

  • To give students an insight into the development economics issues faced by poor countries
  • To understand difficulties of development and importance of indigenous strategic thinking.

To  provide an understanding of current economic development issues and challengers faced by the entire world  in the new millennium

At the end of this course, students will be able to;

  • Get a balance view of development economics issues of the developing countries.
  • Enhance the empirical skills on collecting and analyzing data on poverty

Understand the difficulties of development and importance of indigenous strategic thinking.

Main Topics Sub Topics     No. of Hours
1. Introduction to development economics and evolution of the subject 1.1 Define economic development  and economic growth 05
2. Homogeneous and heterogeneous factors  of developing nations 2.1  Pattern of population growth

2.2  Experience in colonization

2.3 Pattern of economic development

3. Poverty and  inequality measurements



3.1  Comparative analysis of economic development

3.2 Level of poverty in the world at present

4. Classic theories of economic development


4.1  Rostow’s stages of growth

4.2  The harrod-domar growth model

4.3  Structural-change models

4.4  Solow-swan growth models

5. The environment and economic development


5.1  Green economic concepts

5.2 Sustainable economic development

6. Trade theory and development experience


6.1  Trade policy debate

6.2  Balance of payments and developing-country debt

6.3 Exchange rate and various policies on exchange rates

7.The macroeconomic stabilization of developing countries exchange rate 7.1 Macroeconomic stabilization 04
8. Development strategies of developing countries


8.1   Agricultural transformation

8.2  Industry diversification

8.3  Structural changes

8.4 Saving and capital formation strategies

9. Externality and consequences of     economic development 9.1  Market failures and corrective measurements 06


10. Millennium  development goals


10.1 Critical issues for the twenty-first century

10.2 Contemporary issues of development economics

Mode of Evaluation Final examination will be conducted

Michael P.Todaro and Stephen C. Smith, economic Development, Ninth Edition.