Theory and Policy of Economic Development

This subject allows students to become familiar with the issues and concepts of economic growth and economic development. Students will come to a knowledge of basic economic growth models and they will master their application on practical examples. They will be trained to understand the processes of managing and creating economic policy by learning about theories of economic policy, as well as types and instruments of economic policies typical of the contemporary economic conditions. By studying this subject, students will be able to improve and expand the previously acquired fundamental knowledge in the field of theoretical economics, and view the current economic developments are through the prism of political cycles and credibility issues, process of globalization and international co-ordination of economic policies.

After completing this course, students will be able to analyze phenomena that characterize the development process, and to establish a system of economic analysis that enables the creation of possibilities for defining assumptions that such company should achieve in order to generate the continuity of the development process for a long time. Students will be able to analyze economic cycles individually and as part of a team. They will gain knowledge how to finance economic development in order to achieve optimal allocation of capital. After completing this course, students should acquire basic knowledge about the types and effects of economic policies. With the acquired knowledge, students will be able to understand the processes of economic policy and by applying modern theories and software and quantitative methodologies while working in government and other institutions they become analysts and creators of economic policies.

Introduction to the theory of economic development; Concepts and scope of terms economic growth and economic development; Contemporary theories of economic development; Objectives and indicators of economic development; Factors and objectives of economic development; Contemporary development strategies; The formation and allocation of capital and its role in economic development; Financing economic development with the domestic savings; External sources of funding for economic development; The basic analytical tools of the theory of economic growth - an introduction to the economic models and Harrod-Domar Growth Model. The concept of economic policy. Characteristics of modern monetary policy. Fiscal policy. Orthodox and heterodox stabilization programs. The credibility and stabilization. Transition. Economic policy in terms of international coordination of economic policies.

The main teaching method in this subject are lectures, and in the exercises students are involved by writing essays and seminar papers.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Dragutinović, D.; Filipović, M.; Cvetanović, S. (2012). Theory of Economic Growth and Development. Belgrade: Faculty of Economics; Dimitrijević, B.; Fabris, N. (2007). Economic Policy - Theory and Analysis. Belgrade: Faculty of Economics.