The Macroeconomics of Developing Countries An Intermediate Textbook

The Macroeconomics of Developing Countries provides a comprehensive discussion of the exogenous factors and macroeconomic policies that affect the business cycle, long term growth, and distribution of income in developing countries. It examines countries dependent on natural resources and affected by supply rigidities in agriculture. They also feature dualistic markets, a large informal sector, rapid population growth, a vulnerable export sector, and chronic dependence on a volatile global finance. The Macroeconomics of Developing Countries uses these examples to analyse the impact of stablization and adjustment politices on growth, inequality, and poverty. Despite the launch of the Sustainable Development Goals there is little consensus on how macroeconomic policies can be consistent with these objectives. The Macroeconomics of Developing Countries demonstrates that a critical application of standard models to developing countries can generate erroneous results and induce the adoption of incorrect policy. In order to address this, it discusses the key structural differences between advanced and developing countries in order to justify the construction of alternative models.

1 - Genesis, context, focus, and accounting relations of standard macroeconomics
2 - Long-term supply-side models of potential growth
3 - Short-term demand-side models of determination of income level
4 - Genesis of macroeconomics and national accounts in developing countries
5 - Long term growth and inequality in economies relying on land and natural resources
6 - Growth in a dualistic economy with a rigid food supply
7 - Rapid population growth and long-term development
8 - Long-term growth in economies with a large informal sector
9 - Balance of payments constrained growth models
10 - External financing, gap models of growth, and the macroeconomics of aid
11 - Institutions, investments and growth in developing countries
12 - How do neoclassical growth models behave in low-income countries?
13 - Short-term behavioral equations for developing countries
14 - IS-LM and AS-AD with behavioral equations for the developing countries
15 - Modelling the open economy, devaluation and the exchange rate in developing countries
16 - Macroeconomic stabilization
17 - Internal and external liberalization, inequality, growth, and poverty
18 - Macroeconomic policies for growth and poverty reduction

Giovanni Andrea Cornia is an Honorary Professor of Economics at the University of Florence, Italy. He was previously the Director of UNU-WIDER and a Chief Economist at UNICEF. He has also held positions in other UN agencies and the private sector. Between 2010 and 2018 he served on the UN Committee for Development Policies of the United Nations' General Assembly, and in 2012 was elected as the first President of the Italian Development Economists Association. He has co-authored, edited or co-edited eighteen books on development and transition economics, including UNICEF's influential study Adjustment with a Human Face (OUP, 1987). He has published 45 articles in scholarly journals and 140 book chapters or working papers on development macroeconomics, inequality, poverty, political economy, child wellbeing, and human development