Economic 20 pages essay, budget $150

ECO 5360: Economic Development: Macro Thomas Osang Fall 2019

Guide for Country Report:

The report should consist of four parts.

Part I (2-3 pages) In part I you should present qualitative information that you consider

important in understanding the development process of the country such as a brief economic and political history of the country as well as social or cultural characteristics that are important to understand the country’s economic development.

You may find relevant qualitative information about the country in books, newspapers (such as New York Times and the Wall Street Journal), and magazines (such as Times, Newsweek, and The Economist). Be aware that, among other things, proper referencing of your sources of information in the main text is required to receive high marks for part I. Also, a map of the country should be placed in Appendix A at the end of your paper.

Part II (8-10 pages) In part II you should present and discuss quantitative information re-

garding the main economic performance variables followed by the various determinants of development: demographics, capital accumulation, human capital formation, income inequality, government role and performance, ge- ographic factors, and international linkages.

Graphs and/or tables of as many variables as possible should be pre- sented in Appendix B at the end of your paper. Label your graphs and tables using increasing numerals: B1, B2, B3, ...

Be aware that, among other things, proper referencing of your graphs and tables in the main text is required to receive high marks for part II.

Most importantly, when you discuss the graphs selected for part II make sure you include both a simple description of the graph as well as an eco- nomic explanation of what is shown in the graph.

Below you find a list of potential variables you may want to discuss in part II. Time series indicates that you should be able to collect data covering most of the years between 1960 and the last year in your data set. Select years means that you should start with the latest year for which data are available and then work backward to add as many years as possible. Note that the following list is fairly detailed - you may not be able to find data on all variables listed below. As a rule of thumb, you should aim to produce between 35 and 40 graphs for this part. Part II should have eight subsections in the same order as the ones on the syllabus. These graphs and tables should contain information on your chosen country only.

List of potential variables to be discussed in Part II and III:

1. Economic Performance

(a) GDP per capita in constant U.S. Dollars

(b) GDP per capita in constant PPP-adjusted U.S. Dollars

(c) average growth rate of GDP Per Capita per decade (in constant or PPP-adjusted U.S. Dollars) (i.e., 60s, 70, 80s, 90s, 00s)

(d) unemployment rate

2. Demographics

(a) population

(b) population growth

(c) crude death rate

(d) crude birth rate

(e) total fertility rate

(f) age structure of population

(g) dependency ratio (ratio of young plus old to total population)

3. Capital Accumulation

(a) gross domestic savings rate

(b) capital stock as percent of GDP

(c) current account surplus (or deficit) as percent of GDP

(d) total external debt (percentage of GDP)

(e) urban population as percent of total population

(f) structure of production: agriculture, industry, services (percent- age of GDP)

4. Human Capital Formation

(a) Education

i. gross primary education

ii. gross secondary education

iii. gross tertiary education

iv. adult literacy rate

(b) Health

i. life expectancy at birth

ii. infant mortality rate

iii. population per physician

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5. Inequality

(a) Income Inequality

i. Gini coefficient

ii. poverty rate (percentage of total population falling below the poverty line)

(b) Gender Inequality

i. gender gap in gross primary, secondary and tertiary educa- tion

ii. gender gap in adult literacy rate

iii. gender gap in labor force participation rate

iv. gender gap in national parliament

6. Government Role and Performance

(a) Quantitative Performance Measures

i. inflation rate (i.e., CPI)

ii. GDP deflator

iii. central government expenditure (percentage of GDP)

iv. structure of central government expenditure: defense, infras- tructure, education, health, social safety net such as unem- ployment and welfare (percentage of central government ex- penditure)

v. government deficit/surplus (percentage of GDP) (listed as Net lending (+) / net borrowing (-) (percent of GDP) (GC.NLD.TOTL.GD.ZS))

(b) Qualitative Performance Measures

i. number of days to obtain business licence

ii. index of government corruption

iii. corruption perception index (from Transparency International data set)

iv. political instability (number of military coups, civil wars, ter- rorist attacks etc per year;

v. number of prisoners as percentage of total population (select years)

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7. Geographic and Natural Resource Information

(a) Geographic and Climate Measures

i. landlocked (yes/no)

ii. tropics (yes/no)

iii. island (yes/no)

iv. average altitude

v. percentage of arable land

vi. data on climate such as temperature, humidity, rainfall etc (long-term averages)

(b) Natural Resource Measures

i. natural catastrophes (if any)

ii. natural resources (as percentage of world resources)

iii. oil rents as % of GDP

iv. natural gas rents as % of GDP

8. International Linkages

(a) International Trade

i. merchandise exports (as percentage of GDP)

ii. merchandise imports (as percentage of GDP)

iii. structure of merchandise exports: food commodities (SITC section 0, 1, 2, 4), fuels (SITC section 3), machinery (SITC section 7), other manufactures (SITC section 5, 6, 8, 9)

iv. structure of merchandise imports: food commodities (SITC section 0, 1, 2, 4), fuels (SITC section 3), machinery (SITC section 7), other manufactures (SITC section 5, 6, 8, 9)

(b) International Investment

i. Inbound FDI (percentage of GDP)

(c) Private International Transfers

i. Remittances (percentage of GDP)

(d) Official International Transfers

i. official development assistance: receipts per capita (in dol- lars)

ii. official development assistance: total receipts (percentage of GDP)

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Part III (7-8 pages)

Part III should contain a detailed description and analysis of the coun- try’s economic development since 1960 relative to countries that have similar per capita income. For example, if your country is a low-income country, the peer group data would be average data for the entire group of low-income countries. The analysis in part III allows you to determine whether your country’s development path was a relative success or failure. It may also provide you with additional reasons for the relative development success or failure of your country. Note that the data for the peer group of countries used in Part III will be given to you.

As in part II, you should present and discuss quantitative information regarding the main economic performance variables as well as the various determinants of development. Just like part II, part III should thus have eight subsections in the same order as the ones on the syllabus. Your graphs and/or tables for part III should be presented in Appendix C at the end of your paper. These graphs and tables should contain information on both your chosen country and the reference group of countries. Note that, among other things, proper referencing of your graphs and tables in the main text is required to receive high marks for part III.

It is not expected that you discuss as many graphs in part III as you do in part II, in part due to data limitations. As a rule of thumb, you should aim to produce between 25 and 30 graphs for this part. Label your graphs and tables using increasing numerals: C1, C2, C3, ...

Part IV (3-4 pages)

Part IV should contain two subsections. In the first one, you should summarize your country’s successes (if any) and failures in terms of its de- velopment process based on your analysis in parts II and III. If you create a table for this summary (which would make a lot of sense), it should placed in Appendix D of your paper. Then, based on your assessments, you should attempt to predict the country’s future path of development (i.e., positive, negative or neutral outlook).

In the second subsection, you should make suggestions for economic poli- cies that are likely to improve the future development of the country. Make at least five recommendations and rank them in terms of their expected costs, from least to most expensive.

References Make sure your report contains a reference section that lists all sources

of information that you used, including the data sets that you received. The reference section should be placed between part IV and appendix A. References should be listed in alphabetical order. As a rule of thumb, your reference section should contain at least 8 references.

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List of additional data sources that may be helpful for your report:

1. World Development Report. Various Years. The World Bank, Wash- ington, DC (HC59.7.W659).

2. Government Finance Statistics Yearbook. Various Years. Interna- tional Monetary Fund. Washington, DC, (HJ101.G68).

3. International Financial Statistics Yearbook. Various Years. Interna- tional Monetary Fund. Washington, DC, (HG3881.I626).

4. Direction of Trade Statistics. Yearbook. Various Years. International Monetary Fund. Washington, DC, (HF91.I65).

5. International Trade Statistics Yearbook. Various Years. U.N. De- partment of International Economic and Social Affairs. New York (HF91.U473).

6. Statistical Yearbook. Various Years. U.N. Department of Interna- tional Economic and Social Affairs. New York (HA12.5.U63).

7. Population and Vital Statistics Report. Various Years. U.N. De- partment of International Economic and Social Affairs. New York (JX1977.A2 - Underwood Law Library).

8. Demographic Yearbook. Various Years. U.N. Department of Interna- tional Economic and Social Affairs. New York (HA17.D45).

9. Energy Statistic Yearbook. Various Years. U.N. Department of Inter- national Economic and Social Affairs. New York (HD9502.A1Y42).

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Additional Hints for Writing the Country Report:

In writing your country report you should follow the standard rules for scientific reports:

• Include a Table of Content page and place it between the title page and the first page of section I.

• Make sure that, except for the title page and the table of content page, all pages of your report are numbered!

• Make sure that each section of your report stays roughly within the page limits given above.

• The data that I will provide for you are taken from the ”World De- velopment Indicators, The World Bank, Washington, DC, 2019” and should be cited as such in the reference section.

• Present the data by arranging them in graphs using Excel. Occasion- ally, a table format may be more suitable, but the general form of the data presentation should be based on graphs/charts.

• Note: 90% or more of your graphs should be produced from the World Bank data sets given to you.

• Each table and graph should be numbered and contain both a header and footnote that lists the source for the information shown in your graph or table.

For example:

Table B.1: Average GDP per Capita per Decade (in constant U.S. $)

Year GDP per Capita

1960 100

1970 250

1980 350

1990 400

2000 480

2010 580

Source: World Development Indicators 2018, The World Bank

• Make sure that all sources listed below your tables and graphs are also included in your reference section at the end of your paper.

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• Use Harvard referencing for writing and organizing citations of source materials as well as the construction of the reference section. Info on how Harvard referencing works can be found here:

http://en.wikipedia.org/wiki/Harvard_referencing

• For Electronic Source Materials, follow the MLA (Modern Language Association) style of citing and referencing. Here is a link:

https://owl.english.purdue.edu/owl/resource/747/08/

• When you talk about numbers (such as growth rate of GDP or exports and imports) in part II and III of your report, always refer to the table that contains the numbers you are talking about. For example: ”The gross domestic savings rate in India rose from 2% in 1960 to 15% in 1993 (see Table B.17).”

• If you use data from sources other than your own tables and graphs, a brief citation to the source needs to given within the text of your report. For example: ”The capital crime rate in South Africa increased dramatically with the end of the apartheid regime, from 3 per 1000 in 1990 to 6 per 1000 in 2000 (Stevenson 2004, p. 264).” Make sure you list the additional sources in your reference section.

• The bulk of your graphs and tables in Appendix B and C has to be based on the World Bank data that I provide you with. Copying and pasting graphs and tables from existing reports should only be used sparingly. Failure to do so will lead to dramatic reductions in points for the country report. Also, do not use the World Bank’s website to generate graphs as these graphs are hard to read when transferred to your PP file.

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