INAF-383 Applied Econometrics for Development: Stata Practicum
Fall for 2017-2018
What drives productivity and innovation at the microeconomic level? This course addresses current debates on competitiveness and globalization using econometric analysis to identify and understand the microeconomic determinants of growth in developing countries. While macroeconomic stability, favorable geography, and strong institutions generate and shape a country’s potential for national competitiveness, wealth and long-term prosperity are created at the microeconomic level. The strategies of private enterprises, the skills and education of workers, and the quality of local regulatory environments within which competition takes place are the main variables that ultimately determine a country’s productivity and innovativeness. As a result, empirical investigation of the drivers of growth must shift down to a more microeconomic level; such an approach has become more feasible as sub-national, industry, firm, and household data have become more available.

In this course, we will survey a growing body of empirical studies that focus on the firm, on the worker, and on the local regulatory environment. By studying the microeconomic environment in which firms operate, we will seek explanations to the core development question of why some countries produce more output per worker than others. For example, we will identify the microeconomic determinants of financial access in Latin America; characterize the types of firms in Sub-Saharan Africa that are more likely to pay bribes and investigate why; measure the technological spillovers from foreign direct investment to local suppliers in Southeast Asia; explore the links between excessive regulatory burden and large informal sectors in South Asia; and examine how changes in the business environment affect the productivity growth of firms in Eastern Europe and Central Asia. By examining the recent econometric evidence on the drivers of growth, students will develop a microeconomic reform agenda for international development. The course will be taught with lectures and readings, as well as econometric analysis of firm-level data from over 100 countries where “World Bank Enterprise Surveys” have been conducted.
Credits: 3
Prerequisites: ECON-122 (completed or concurrent) or permission of instructor
More information
Look for this course in the schedule of classes.

The academic department web site for this program may provide other details about this course.