Economics of Growth and Structural Transformation

The economist Robert Lucas once remarked that once you begin to think about economic growth, it is difficult to think about anything else—so profound are its consequences for human well-being over the long run. Yet, in a world marked by planetary boundaries, rising inequality, and uneven development, the question is no longer only about how economies grow, but how they transform and with what consequences. This course examines the economics of growth and structural transformation, exploring how changes in production structures, labor allocation, technology, and institutions drive long-run development. Understanding the mechanisms of economic growth remains one of the central challenges in macroeconomics, but explaining how growth is sustained through structural transformation—the reallocation of resources from low- to high-productivity sectors— and its consequences are equally vital. The course begins with the Solow Model, analyzing the roles of savings, capital accumulation, population dynamics, and technological progress in explaining growth differences across countries and periods. We then move beyond aggregate growth models to study how globalization, inequality, institutions, and geography shape patterns of transformation. In the final part of the course, we will critically assess the relationship between economic growth, structural change, and the goals of sustainable and inclusive development.
 

Format
Learning will be fostered through Lectures, Seminars, and the preparation of a group Term Paper and presentations. Weekly learning activities will be organized on the basis of the themes explored in the course textbook, which will be supplemented relevant academic articles. Lectures will guide students on the topics covered by the course textbook; Seminars, help them to master said material. Seminars will also allow them to engage with relevant academic articles beyond the course textbook. The preparation of a group Term Paper and presentation will provide students the opportunity to empirically explore and critically engage with theoretical concepts taken up in the course.