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CURRICULUM
OF
ECONOMICS
BS (4-YEAR)
2008
HIGHER EDUCATION COMMISSION
ISLAMABAD
CURRICULUM DIVISION, HEC
Dr. Syed Sohail H. Naqvi Executive Director
Prof. Dr. Riaz ul Haq Tariq Member (Acad)
Miss Ghayyur Fatima Deputy Director (Curri)
Mr. M. Tahir Ali Shah Assistant Director
Mr. Shafiullah Khan Assistant Director
2
CONTENTS
1. Introduction.................................................... 7
2. Frame work/Template for BS (4 years)
In Economics................................................. 9
3. Scheme of Studies for BS (4 years)...................... 10
in Economics
4. Objectives..................................................... 12
5. Details of Courses for BS (4 years)
in Economics.....................................................13
6. Details of Compulsory courses
(Annexures A, B, C, D & E)................................. 102
3
PREFACE
Curriculum development is a highly organized and systematic process
and involves a number of procedures. Many of these procedures include
incorporating the results from international research studies and reforms
made in other countries. These studies and reforms are then related to
the particular subject and the position in Pakistan so that the proposed
curriculum may have its roots in the socio-economics setup in which it is
to be introduced. Hence, unlike a machine, it is not possible to accept
any curriculum in its entirety. It has to be studied thoroughly and all
aspects are to be critically examined before any component is
recommended for adoption.
In exercise of the powers conferred by sub-section (1) of section 3 of the
Federal Supervision of Curricula Textbooks and Maintenance of
Standards of Education Act 1976, the Federal Government vide
notification No. D773/76-JEA (cur.), dated December 4th 1976, appointed
the University Grants Commission as the competent authority to look
after the curriculum revision work beyond class XII at the bachelor level
and onwards to all degrees, certificates and diplomas awarded by
degree colleges, universities and other institutions of higher education.
In pursuance of the above decisions and directives, the Higher Education
Commission (HEC) is continually performing curriculum revision in
collaboration with universities. According to the decision of the special
meeting of Vice-Chancellor's Committee, the curriculum of a subject
must be reviewed after every 3 years.
A committee of experts comprising of conveners from the National
Curriculum Revision of HEC in Basic, Applied Social Sciences and
Engineering disciplines met in April 2007 and developed a unified
template to standardize degree programs in the country to bring the
national curriculum at par with international standards, and to fulfill the
needs of the local industries. It also aimed to give a basic, broad based
knowledge to the students to ensure the quality of education. The new
BS degree shall be of 4 years duration, and will require the completion of
130-136 credit hours. For those social sciences and basic sciences
degrees, 63.50% of the curriculum will consist of discipline specific
courses, and 36.50% will consist of compulsory courses and general
courses offered through other departments.
For the purpose of curriculum revision various committees are
constituted at the national level, comprising of senior teachers nominated
by universities, degree awarding institutions, R&D organizations and
respective accreditation councils. The National Curriculum Revision
4
Committee for Economics in a meeting held on June 27-28, 2008 at the
HEC Islamabad in continuation of its earlier meeting held on May 15-16,
2008 at HEC Islamabad revised the curriculum in light of the unified
template. The final draft prepared by the National Curriculum Revision
Special Committee, duly approved by the competent authority, is being
circulated for implementation in the concerned institutions.
PROF. DR.RIAZ-UL-HAQ TARIQ
Member Academics
July 2008
5
CURRICULUM DEVELOPMENT
STAGE-I STAGE-II STAGE-III STAGE-IV
CURRICULUM CURRICULUM IN FINAL STAGE FOLLOW UP
UNDER DRAFT STAGE
CONSIDERATION
COLLECTION OF
EXP NOMINATION
UNI, R&D,
APPRAISAL OF 1ST PREPARATION QUESTIONNAIRE
INDUSTRY &
DRAFT BY EXP OF FINAL
COUNCILS
CURRICULUM
CONS. OF NCRC. FINALIZATION OF COMMENTS
DRAFT BY NCRC
PRINTING OF
CURRICULUM
REVIEW
PREPARARTION OF
DRAFT BY NCRC
IMPLEMENTATION
OF CURRICULUM
ORIENTATION BACK TO STAGE-I
COURSES BY
Abbreviations Used:
LI, HEC
NCRC. National Curriculum Revision
Committee
VCC. Vice-Chancellor's Committee
EXP. Experts
COL. Colleges
UNI. Universities
PREP. Preparation
REC. Recommendations
LI Learning Innovation
R&D Research & Development
Organization
HEC Higher Education Commission
6
INTRODUCTION
The final NCRC meeting in Economics was held on June 27-28, 2008 at
HEC, Islamabad which was follow up of the preliminary meeting held on
May 15-16, 2008 at HEC Islamabad. The following attended the
meetings:
1. Prof. Dr. Toseef Azid, Convener
Department of Economics,
Bahauddin Zakariya University, Multan
2. Prof. Dr. Zakir Hussain, Member
Chairman,
Department of Economics,
University of Sargodha, Sargodha, Member
3. Prof. Dr. Sofia Anwar, Member
Assistant Professor,
Department of Economics,
University of Sargodha, Sargodha
4. Prof. Dr. Eatzaz Ahmad, Member
Department of Economics,
Quaid-i-Azam University, Islamabad.
5. Dr. Pervez Zamurrad Janjua, Member
HEC, Foreign Faculty Expert,
IIIE, International Islamic University,
Islamabad
6. Dr. Hafiz M. Yasin, Member
Chairman, School of Economics, IIIE
International Islamic University, Islamabad
7. Dr. Rashid Naeem, Member
Chairman,
Department of Economics,
Allama Iqbal Open University, Islamabad
8. Prof. Dr. Marhab Qasmi, Member
Department of Economics,
University of Sindh,
Jamshoro
7
9. Dr. Syed Mohammad Arif, Member
Department of Economics,
University of Balochistan, Quetta
10. Dr. Asad Zaman, Member
Professor, I.I.I.E.,
International Islamic University,
Islamabad
11. Dr.Naeem-ur-Rehman Khattak, Member
Professor of Economics & Dean
Faculty of Social Sciences,
Department of Economics,
University of Peshawar, Peshawar.
12. Dr. Asad Raza Abidi, Member
Department of Economics,
Shah Abdul Latif University , Khairpur
13. Dr. Bashir Ahmad Khilji, Member
Associate Professor,
Department of Economics,
GC University, Faisalabad.
14. Dr. Rana Ejaz Ali Khan, Member/
Department of Economics, Secretary
The Islamia University of Bahawalpur,
Bahawalpur
The preliminary meeting started with the recitation from the Holy Quran
by Mr. Shafiullah, Assistant Director, HEC. Prof. Dr. Riaz ul Haq Tariq,
Member (Academics), welcomed the participants and asked them to
adjust the existing curriculum of Economics in the light of the approved
template/framework developed by HEC for 4-Year integrated BS
program and suggest those books which are latest and readily available
in the market. Then the members unanimously selected Prof. Dr. Toseef
Azid, Department of Economics, Bahauddin Zakariya University, Multan
as Convener and Dr. Rana Ejaz Ali Khan, Department of Economics,
The Islamia University, Bahawalpur as Secretary of the meeting.
After two days long deliberation the members agreed on the following
format and scheme of studies for BS 4-Year Economics.
8
FRAMEWORK FOR BS (4-YEAR) ECONOMICS
Compulsory General Courses
Discipline Specific
Requirements (the to be chosen from
Foundation Courses
student has no choice) other departments
9 courses 7-8 courses 9-10 courses
25 Credit hours 21-24 Cr. hours 30-33 Credit hours
Subject Cr. Subject Cr. Subject Cr.
hr hr hr
English I 3 1. Sociology 3 1. Principal of Micro Econ. 3
English II 3 2. Education 3 2. Principal of Macro Econ. 3
English III 3 3. Psychology 3 3. Intermediate Micro Eco. 3
English iv/ Univ. 3 4. World History 3 4. Intermediate 3
optional * 5. Geography 3 Macro Economics
Pakistan studies 2 6. Philosophy 3 5. Statistics I 3
Islamic Studies / 2 7. General 3 6. Statistics II 3
Ethics Science 7. Deve. Economics 3
Mathematics I 3 8. Law 3 8. Research Methodology 3
Mathematics II / Univ. 3 9. Agriculture Economics 3
optional ** (List of Addit.
Introduction to 3 General subjects
Computer is given )
Courses: 9 25 Courses: 8 24 Courses: 9 27
Major courses including Elective Courses
research project/internship within the major
11-13 courses 4 courses
36-42 Credit hours 12 Credit Hours
Subject Cr. Subject Cr.
hr hr
1. Micro Economics 3 1. Elective-I 3
2. Macro Economics 3 2. Elective-II 3
3. Econometrics I 3 3. Elective-III 3
4. Econometrics II 3 4. Elective-IV 3
5. International Trade Theory 3 5. Elective-V 3
6. Public Finance 3 6. Elective-VI 3
7. Mathematical Economics I 3
8. Mathematical Economics II 3 (List of Elective/Optional subject is given )
9. History of Economic Thoughts 3
10. Islamic Economics 3
11. Applied Economics 3
12. Research Paper 3
Courses: 12 36 Courses: 6 18
* University has the option to recommend any other course in lieu of English IV
** University may recommend any other course in lieu of Mathematics II
9
SCHEME OF STUDIES FOR BS (4YEAR)
ECONOMICS
Semester/Year Name of Subject Credits
First
ECON 101 English I 3
ECON 102 Principal of Micro Economics 3
ECON 103 Islamic Studies 2
ECON 104 Mathematics I 3
ECON 105 Computer Application 3
ECON 106 Optional (Non-Economic) 3
17
Second
ECON 107 English II 3
ECON 108 Pakistan Studies 2
ECON 109 Principal of Macro Economics 3
ECON 110 Mathematics II 3
ECON 111 Optional (Non-Economics) 3
ECON 112 Optional (Non-Economics) 3
17
Third
ECON 201 English III 3
ECON 202 Intermediate Micro Economics 3
ECON 203 Development Economics 3
ECON 204 Statistics I 3
ECON 205 Optional (Non-Economics) 3
ECON 206 Optional (Non-Economics) 3
18
Fourth
ECON 207 English III 3
ECON 208 Intermediate macro economics 3
ECON 209 Statistics II 3
ECON 210 Agriculture Economics 3
ECON 211 Optional (Non-Economics) 3
ECON 212 Optional (Non-Economics) 3
18
Fifth
ECON301 Micro Economics 3
10
ECON302 Econometrics I 3
ECON303 Mathematical Economics I 3
ECON304 Optional ( Economics) 3
ECON305 Optional (Non-Economics) 3
ECON306 Optional (Economics) 3
18
Sixth
ECO307 Macro Economics 3
ECON308 Econometrics II 3
ECON309 Mathematical Economics II 3
ECON310 Optional (Economics) 3
ECON311 Optional (Economics) 3
15
Seventh
ECON401 International Trade Theory 3
ECON402 Research Methodology 3
ECON 403 Public Finance 3
ECON404 History of Economics Thoughts 3
ECON405 Optional (Economics) 3
15
Eight
ECON 406 Applied Economics 3
ECON407 Islamic Economics 3
ECON408 Research Paper 3
ECON 409 Optional (Economics) 3
12
Total Credit Hours = 130
In the final meeting the members furnish details of courses i.e. course
outlines, contents, objectives and list of books for each course, assigned
to them in the preliminary meeting.
List of Additional General Courses:
1. Mass Communication
2. International Relation
3. Principal of Accounting
4. Political Science
5. Spanish
6. Language
11
7. Russian
8. Arabic
9. German
List of Elective Courses (Optional ):
001. General Equilibrium and Welfare Economics
002. Human Resource Development
003. Labor Economics
004. Population Economics
005. Comparative Economic System
006. Project Appraisal and Investment Analysis
007. Major Issues in Pakistan Economy
008. Environmental Economics
009. Operation Research
010. Dynamic Macro Economics
011. Monetary Economics
012. Monetary Policy
013. Fiscal Policy
014. Rural Development
015. International Trade Policy
016. International Finance
017. Development Policy
018. Institutional Economics
019. Financial Institution and Market
020. Game Theory
021. Managerial Economics
022. Political Economy
023. Industrial Economics
024. Transport Economics
025. Health Economics
026. Resource Economics
027. Experimental Economics
028. Urban Economics
029. Regional Economics
030. Topics in Marketing
031. Poverty Alleviation
MISSION STATEMENT
The main purpose is to achieve the highest possible standards of
education, teaching and research in economics. More specific goals
are:
12
1. Encourage intellectual development and scholarship in
economics.
2. Impart sound theoretical and applied knowledge of Economics.
3. Develop awareness in students to prepare themselves for
national and international challenges.
4. Develop an ability in students to become effective independent
researchers and learners.
5. Develop curriculum as per market needs and demand of
institutions and society; considering the changing global and
national requirements.
6. Prepare students to enhance knowledge and welfare of the
society.
Details of Courses
ECON 102 Principles of Micro Economics 3 Cr. Hrs.
Pre-requisite
F.A., F.Sc. or equivalent
Objectives
The course is designed for the beginners with either no formal
background or very little acquaintance with economics. The objective is
to give the students with a clear understanding of the basic concepts,
tools of analysis and terminologies used in microeconomics. Emphasis
will be on the use of graphs, diagrams and numerical tables/schedules
for exposition. The teacher is expected to draw examples from the
surrounding world to clarify the concepts.
Course Contents
Introduction
An overview of the social system, Economy as integral part of the social system,
Economic agents and economic problem, Economics as a science of choices
between competing wants and limited resources, Classification of economics,
Importance and scope of micro-economics, Basic concepts: Commodities,
Income and Resources, Production and Consumption, Exchange and
Distribution.
The Price Mechanism
The concept of a market economy, Laws of demand and supply,
schedules & graphs of demand and supply, Market equilibrium and
determination of price, Movement along and shifting of demand and
13
supply curves, Concept of elasticity of demand and supply, Importance
of elasticity.
Consumer's Behaviour
Consumers/ households as economic agents, Problem of the
consumers, The utility theory, Laws of diminishing marginal utility and
equi-marginal utilities, Budget constraint and consumer's equilibrium,
Individual demand and market demand, Introduction to demand
elasticity.
Firms and Industries
Business enterprises, Forms of business organization: Proprietorship,
Partnership, Joint stock companies, Multi-national corporations,
Classification of the firms, Production and supply of commodities (goods
and services), Objectives of the firm: The profit motive, Output
maximization and cost minimization, Industrial structure & market supply.
Production and Cost Functions
Production function, Primary inputs: factors of production,
Secondary/intermediate inputs: Raw material and energy, The laws of
returns, Revenues of the firm: total, average and marginal revenues,
Cost function: Total, average and marginal costs, Short-run and Long-
run costs, Equilibrium of the firm.
Market Structure
Classification of markets according to nature of commodity, extent, time
and degree of competition, Perfect competition among buyers and
sellers, Imperfect competition: Monopoly and Monoposony, Monopolistic
competition, Price determination, The need for market regulation and
role of the government, Public goods and their provision beyond the
market.
Recommended Book
Mankiw, G. - Principles of Economics - 2nd Edition (2001), South-
West Publishers.
Samuelson and Nordrons - Economics 18th Edition (2004)-
McGraw Hill.
McConnel and Bruce - Principles of Economics -17th Edition
(2006)- McGraw Hill.
Lipsey and Goerant-Principles of Economics-10th Edition (2003)-
Oxford University Press
14
ECON 109 Principles of Macro Economics 3 Cr. Hrs.
Pre-requisite
F.A., F.Sc. or equivalent
Objectives
The course is designed for the beginners with no formal background or
little acquaintance with economics. The objective is to give the students
with a clear understanding of the basic concepts, tools of analysis and
terminologies used in macroeconomics. Emphasis will be on the use of
graphs, diagrams and numerical tables/schedules for exposition. The
teacher is expected to draw examples from the surrounding world to
clarify the concepts.
Course Contents
Introduction
The economy in aggregate, Complexities of the world of business, Scope
of macroeconomics, Brief account of the development of macro-
economics after the World War-II, Concept of business cycles: Boom
and Depression, Concepts of Inflation and Unemployment,
Macroeconomic variables and their mutual relationship, Macro-models
as abstraction from the real economy.
National Income
Definition and concept of national income, Measures of national income:
Gross Domestic Product (GDP) and Gross National Product (GNP), GDP
at factor cost and at market prices, Computation of national income:
Product, Income and Expenditure approaches, Circular flow of income,
Nominal versus Real income, Per capita income and the standard of
living.
Components of Aggregate Demand
The Concept of Open and closed economy models, Concept of
aggregate markets: Product, Money, Labor and Capital markets,
Components of aggregate demand: Consumption, Investment and
Government spending, Income and expenditure identities.
Money and Banking
Money: definition, forms and functions, Central Bank and its functions
with reference to the State Bank of Pakistan, Commercial banking, The
Quantity Theory of money, Inflation: measurement and impacts, causes
of inflation and remedies, Monetary policy: brief introduction.
15
Public Finance and Taxation
Sources of public revenue, Various forms of taxes: Direct and Indirect,
Income and Commodity taxes, Sales, Excise, Customs, Non-tax
revenues, Major heads of public expenditure, Revenue and Capital
account, Concept of budget deficits and sources of filling the gaps,
Deficit financing, Fiscal policy: meaning and objectives.
International Trade
Global distribution of resources, Concept of imports and exports, Theory
of absolute and comparative advantage, Currency exchange rates,
Balance of Payments: causes of deficits in BOP of Pakistan and
remedial measures, Custom Unions, The problem of external debt,
Commercial Policy: objectives and scope.
Recommended Books
Mankiw,GPrinciples of Economics-2ndEdition (2001)- South-
West Publishers.
Samulson and Nordrons - Economics 18th Edition (2004)-
McGraw Hill. Inc.
Parkin, Michael - Macroeconomics, 7th Edition (2004)- Prentice
Hall.
Miller, R.L. Economics Today -14th Edition (2005) - Addison
Wesley.
ECON 202 Intermediate Micro Economics 3 C r. H rs .
Pre-requisite
ECON 102 Principles of Micro Economics
Objectives
The objective of the course is to clarify and extend further the
microeconomic concepts and to develop analytical skills and solving
petty problems. In addition to diagrammatic approach, the students ought
to get accustomed to simple mathematics and numerical tools. The
teacher is expected to draw examples from surroundings for exposition.
The students may be given assignments to collect information from the
markets and to analyze the data. They may have tours to the industrial
units and to observe the process of production and problems in supply
and demand.
16
Course Contents
Introduction
Scope of Microeconomics and areas of its concern, Economic agents
and decision making, Brief account of the Theory of Value, The
relationship between production and consumption, The role of markets
and importance of price signals in efficient allocation of resources,
Economic models as abstraction from the reality, Introduction to
mathematical functions used in economics: Utility, Demand, Supply and
Production functions etc.
Theory of Consumer Behaviour
Axioms of Rationality, The utility function and its arguments, Laws of
diminishing marginal and equi-marginal utility, Indifference curves and
their properties, Concepts of imperfect substitutes and complements,
Marginal rate of (commodity) substitution (MRCS), Convexity of
indifference curve and diminishing MRS, The budget constraint,
Consumer's equilibrium and law of equi-marginal utility, Income &
Substitution effects of a price change: diagrammatic representation,
Normal, Inferior and Giffen goods, Gross substitutes and net substitutes,
The indirect utility function, Non-homothetic Preferences, Introduction to
the Revealed Preference Theory.
Demand & Elasticity
Derivation of demand functions using indifference curves, Ordinary and
Compensated demand functions, Engel's law and classification of goods,
Market demand as horizontal summation of individual demands,
Elasticity of demand, Importance and types: Own-Price, Cross-Price and
Income elasticity, Relationships among different demand elasticities.
Production Functions
Definition, classification and problems of firms, Production and value-
added functions, Fixed and variable-coefficient functions, Some
commonly used production functions: Cobb Douglas and CES etc.,
Average and marginal products of variable factors and their inter-
relationship, Iso-quant maps, Marginal rate of (technical) substitution
(MRTS), The cost line and equilibrium of the firm, Output maximization
subject to given cost/budget, Demand for variable factors, Elasticity of
substitution, Returns to scales and Economies of scales.
Cost of Production
Types of costs: Economic and Accounting costs, Opportunity costs,
Fixed and Sunk costs, Total and variable costs, average and marginal
costs, Short-run and Long-run cost functions, Decreasing, Constant and
Increasing cost industries, Cost minimization subject to given/pre-
17
determined level of output, Input cost and demand for factors of
production.
Behaviour of the Firm
Profit maximization (loss minimization) as the sole objective of all firms,
Equilibrium of the firm when it faces the market, Total, Average and
Marginal Revenues, Equality of marginal revenue and marginal costs,
Economic profit and rent, Short-run and Long-run position of a price
taking and price seeking firm, The controversy over the profit
maximization hypothesis.
Market Structure and Price Determination
(i) The Perfectly Competitive Market
Assumptions of the model, Pure and Perfect Competition, Short-run
and Long-run equilibrium of competitive firms, Supply functions in
the short and long-run, Constant-cost and increasing-cost
industries, Derivation of equilibrium Prices and Quantity using
simple equations.
(ii) Monopoly and Monopsony
The market power of a firm, Sources of monopoly power: why do
monopolies exist, Decreasing-cost industries and natural
monopolies, Comparison between monopoly and monopsony,
Short-run and Long-run Equilibrium of a firm with monopoly power,
Price discrimination, Bi-lateral monopoly, Multi-plant monopoly, The
social costs of monopolies, Public utilities and marginal cost pricing,
Market regulation and anti-trust policies, Market equilibrium with
monopoly power.
(iii) Monopolistic Competition and Oligopoly
Characteristics of monopolistic competition, Short-run and Long-run
equilibrium, The basic theories of monopolistic competition,
Comparison with pure competition & monopoly, The role of
advertisement and media, Models of non-collusive Oligopoly:
Cournot, Bertrand, Chamberlain, Sweezy etc. Price leadership and
cartel formation.
Pricing of the Factors of Production
Derived Demand for Variable Inputs, The marginal productivity theory
and its criticism, Modern theory of factor demand with emphasis on the
labour and capital markets, The labour supply function, Wage
determination and the role of government and labour unions, Input price
18
elasticity, Pricing of factors that are fixed in the short-run: Rents & Quasi-
rents, Stock prices.
Recommended Books
Pindyck and Rubinfled with Mehta- Microeconomics- 6th Edition
(2005)-
Pearson Education, Singapore
Walter Nicholson- Intermediate Microeconomics- 6th Edition
(1994) or latest
The Dryden Press: Harcourt Brace College Publishers
Koutsoyiannis, A.- Modern Microeconomics- 2nd edition (1979)-
Macmillan.
Varian Hall R.- Intermediate Microeconomics: Modern Approach-
6th edition (2002)- W. W. Norton Publishing Company, New York.
Leftwich, Eckert The Price System and Resource Allocation
10th Edition (1988) or latest- The Dryden Press, New York.
Dowling, Edward Mathematics for Economists -(1980) -
(Schaum's Outline Series) McGraw Hill Inc.
ECON 203 Development Economics C r. H rs .
Course Contents
Scope and New Developments
Definitions: Economic Development and Growth, Identification of
Development variables. Scope and Significance of Development
Economics. Characteristics of LDC's. Measurement of Economic
Development and Growth. Per Capita Income approach, Quality of Life
Index / HDI etc. Historical overview of world development and emerging
major issues pertaining to Less Developed Countries (LDC's). Why the
whole world is not developed?
Major Theories of Development
Classical and Neo-classical Theories, Adam Smith and Competitive
Capitalism, Vicious Circle of Poverty, Stages of Economic Growth,
Balanced and Unbalanced Growth, Big Push Theory. Dependency
Theory, Structuralist's View Point. Endogenous Growth Theory: New
growth Theory. Income Convergence/Divergence debate. Market
Friendly Approach.
Agriculture and Industry
Agriculture vs. Industry: Development Debate. Lewis' Model of surplus
Labor. Rains' Fei Model and its critical review. Transforming Agriculture,
19
Underemployment problem. Role of Agriculture: Market for Industrial
Output, Provision of Input, food, Complementarities, productivity growth.
Terms of Trade Issue and Subsidies, etc. and Competitiveness. Land
Holdings, Green Revolution and it's Performance. Need for
Industrialization. Industrialization and its financing mechanism. Problem
of Sectoral Dualism. Why Green Revolution? The Spread of Green
Revolution in Pakistan and its Status / Contributions.
Population, Education and Human Capital
Demographic Transition, Human Resources as a source of growth and
their contributions. Investment in education and returns. Models of
Employment & Unemployment: Time Criterion, Productivity Criterion and
New Index etc., and Employment generation Strategies/Techniques.
International Debt, Aid / Assistance
Why international borrowing? Two Gap Model, Aid commitments and
disbursement. Sources of borrowing. Debt Cycle Theory/Stages. Debt
Burden: Debt Servicing, Debt Laffer Curve, Debt buy back etc., Latin
American Debt Crises, ASEAN Crises, Debt Problem of LDC's and
South Asia, Debt Overhang and threat to growth. Policies to combat debt
problem: Forecasting debt and solution for debt burden, saving
mobilization/Domestic resource mobilization, Debt rescheduling etc.
Debt Modeling and Forecasting Future Implication.
WTO, Liberalization and International Trade
Trade vs. Aid. Liberalization of Trade and its impacts/gains etc., Foreign
Exchange Constraints and Balance of Payment deficit. Role of GATT
and its Failure. WTO and LDC's. Trade Instability, Distribution of gains
from Trade liberalization. Regional Trade Associations (RTA's): their role
and contributions. Basis for trade and benefits: Gains from Trade: Static
and Dynamic Gains. Comparative Advantage, Revealed Comparative
Advantage and Competitiveness. Trade as an engine of growth. Product
Cycle. Determinants of exports growth. Transfer of Technology: Sources
& Need. Technology Centered Development and Appropriate technology
issue.
Poverty and Income Distribution
Definitions and Measurement of Poverty/Poverty Line. Poverty
concepts/definitions. Absolute Poverty, Relative Poverty, Income
approach, Expenditure approach, Basic needs approach, Poverty of
Opportunities Index (POPI) and Calorie-based approach etc. Poverty
Indicators. Poverty by socio-economic groups. Sources, impacts and
policies to combat poverty. Strategies and tools to combat poverty.
Growth and Income Inequality in the world. Empirical evidences on
20
poverty. Redistribution with growth. How to combat income inequality.
Basic Needs, Social Action Programs and Poverty alleviation.
Economic Growth and Environment
Model of Environment and Economic Activity. Market Based Approach
and Externalities. Deforestation and Renewable Resources, Measuring
environment values. Deforestation and Macroeconomic Environment.
Industrialization and its environmental cost, Use of Pesticides and
Environmental Impacts. Natural resources degradation. Cost of
Pollutions/Environmental degradation. International awareness about
environment, production and need for Reforms. Economic thoughts and
Environment. International Agencies: Environmental concerns and
programs. Urbanization and environmental issues. Sustained
development, Ecology and economic progress.
Recommended Books
Balasubramanyam V. and Lall, S. (Latest eds.), Current Issues
in Development Economics. McMillan , London.
Chaudhary M. Aslam and Hamid, A., (1989). Human Resource
Development and Management in Pakistan. Ferozsons, Lahore.
Chaudhary M. Aslam and Eatzaz, A., (2004), Globalization:
WTO, Trade and Economic Liberalization in Pakistan,
Ferozsons, Lahore, Pakistan.
Chenery H. B. and Srinivasen. Hand Book of Development
Economics, vol. I & II, Amsterdam (1988, eds.). North Holland.
Cypher J. M. and Dietz James L., (2004), The Process of
Economic Development, Routledge. Tayl or Francis Group,
London/New York.
Ghatak Subarta, (2003), Introduction to Development
Economics, Routledge, Taylor and Francis Group, London/New
York.
Herrick B. and Kindleberger C., (latest eds.). Economic
Development. McMillan, New York.
Hirshman A. O., (1960). Strategy of Economic Development,
Yale University, Press.
Jones H. G., An Introduction to Modern Theories of Economic
Growth, (Latest Edition), McGraw Hills.
Mahboob-ul-Haq Center for Human Development (MHCHD).
Human Development in South Asia, Annual Reports, Islamabad.
------------- (1999), A Profile of Poverty In Pakistan, (In
Collaboration with UNDP).
Meier Gerald M., Leading Issues in Economic Development,
(Latest Issue),Oxford University Press.
21
Thirlwall, A.P., (2003), Growth and Development, With Special
Reference to Developing Economies 7th edition, Palgrave
Publisher.
Todaro M. P., Economic Development in the third World. Latest
Edition, Heinemann, London.
UNDP, Human Development Reports , Annual Reports.
Van Den Berg H., (2001), Economic Growth and Development,*
McGraw Hills.
William, Easterly, Growth without Development, A Case Study of
Pakistan, World Bank.
World Bank, World Development Reports, Annual reports, 1986,
1987, 1990, 1991, 1992, 1994, 1995, 1998/99, 2000/2001 and
2004.
Yotopolous Pan A. and Nugent Jeffery B., Economics of
Development, Empirical Investigation (Latest eds.). Harper and
Row Publishers, London/New York.
ECON 208 Intermediate Macro Economics 3Cr. Hrs.
Pre-requisite
ECON 102 Principles of Micro Economics
Objectives
The objective of the course is to clarify and extend further the concepts
of macroeconomics so as they develop the capacity to understand the
issues and problems of the economy in a global scenario. In particular,
they have to capture the nature and scope of various public policies. In
addition to diagrammatic approach, the students are confronted to simple
mathematical and numerical analysis. The teacher is expected to draw
examples from the surrounding world for exposition.
The students may be given assignments to collect information about
various aspects of the economy. They have to read and understand the
Economic Survey and Annual Reports of the State Bank of Pakistan.
They may be asked to discuss the Federal and Provincial Budgets and to
analyze the framework.
Course Contents
Introduction
The Keynesian revolution and growth of Macroeconomics, Actual vs.
Potential Output, Analytical approach to macroeconomics, Oken's Law
and unemployment, Price Indices and Inflation, The simple
macroeconomic models, Lead and Lagged variables, Exogenous and
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Endogenous variables and their functional relationships, Introduction to
the Classical and Keynesian Schools of Thought.
Measurement of National Income
The circular flow of National Income, GDP and GNP, Measurement of
GNP: Expenditure (demand), Product (supply) and Income (factor
rewards) approach, Value added at factor cost and market prices,
Personal and disposable income, Per capita income, GNP as measure of
welfare, Injections into and L


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