The Macroeconomics of Developing Countries: An Intermediate Textbook
The Macroeconomics of Developing Countries: An Intermediate Textbook
Honorary Professor of Economics
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Abstract
The book focuses on the short- and long-term macroeconomic challenges faced by developing countries characterized by missing, incomplete, and dualistic markets and weak institutions. Such problems affect long-term growth, short-term macroeconomic equilibrium, employment, and inequality far more than in the advanced economies. A central message of the book is that ignoring these features and applying to developing countries models inspired by the reality of advanced economies may lead to wrong conclusions and policies. These challenges are discussed for a number of archetypes of developing economies dependent on land and natural resources, affected by supply rigidities in agriculture, and featuring dualistic markets, a dominant informal sector, fast population growth, and chronic dependence on the export of commodities and a volatile external finance. Finally, the book discusses the impact on growth, inequality, and poverty of the stabilization and structural adjustment reforms that were increasingly implemented during the last thirty years. These issues have taken centre stage since the launch of the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs) initiatives that have not spelled out a clear macroeconomic approach. There is a risk, therefore, that the wrong policies and sudden shocks may derail progress towards the SDGs which might be achieved by means of social policies.
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Front Matter
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Part I Context and Instruments of Standard Macroeconomics: An Overview
Giovanni Andrea Cornia -
Part II Economic Structure and Long-Term Growth in Developing Countries
Giovanni Andrea Cornia-
4
Genesis of Development Macroeconomics and National Accounts in Developing Countries
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5
Long-term Growth and Inequality in Economies Relying on Land and Natural Resources
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6
Growth in Dualistic Economies with a Rigid Food Supply
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7
Rapid Population Growth and Long-term Development
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8
Long-term Growth in Developing Countries with a Large Informal Sector
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9
Balance of Payments-constrained Growth
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10
External Financing, Gap Models of Growth, and the Macroeconomics of Relying on Foreign Resources
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11
Institutions, Investment, and Growth in Developing Countries
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12
How do Neoclassical Growth Models Behave in Low-income Countries?
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4
Genesis of Development Macroeconomics and National Accounts in Developing Countries
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Part III Demand Management and Short-Term Growth: IS-LM and AS-AD in Developing Countries
Giovanni Andrea Cornia -
Part IV Specific Macroeconomic Problems Faced by Developing Countries
Giovanni Andrea Cornia -
End Matter
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