Growth and Development

YEAR 2020

  1. Explain Myrdal’s cumulative causation theory as the theory of development.
  2. What makes technical progress endogenous? Think that technology is a non-Rival good?
  3. Show that if the research becomes more successful the growth rate will increase and hence the standard of living.
  4. Show how the idea of monopolistic competition becomes intrinsic to the endogenous growth theory as postulated by Romer.
  5. Explain how public private partnership help in Rapid economic development of a country.
  6. Describe Lewis model of development in an economy with unlimited supply of labour. Is Lewis model really capital driven? Give reasons.

YEAR 2019

  1. How does ‘carbon trading’ help in reducing environment degradation?
  2. How is Human Development Index (HDI) calculated by UNDP? Can there be a better method of assigning weights to various indicators?
  3. Discuss the essential features of the growth models which incorporate research and development.
  4. Can multinational investment defeat the objective of inclusive growth? Give reasons for your answer.
  5. In what way does the concept of a positive optimal tariff apply to only large countries and not to small countries? Explain.
  6. Can public-private partnership function be effective in the area of physical infrastructure?

YEAR 2018

  1. What are shadow prices? Why are these preferred over market prices in project evaluation?
  2. In Harrod’s model of growth, if the expected growth rate exceeds the warranted growth rate, what will be the relation between the actual growth rate and the expected growth rate?
  3. Development of human capital may lead to constant returns and propel an economy to self- sustaining economic growth. Explain.
  4. Kuznets hypothesis predicts decline in income inequalities in the long run. In recent decades do trends in income inequalities in developed and developing economies support this hypothesis? Give reasons for your answer.
  5. Explain Arthur Lewis model of economic development with unlimited supplies of labour. What is A.K. Sen’s critique of that approach?
  6. Explain why the market and the State have complementary roles in economic development.
  7. How does rural economic activity create environmental degradation in developing economies?
  8. What policies would you suggest to combat negative environmental externalities?

YEAR 2017

  1. What is ‘Solow residual’? What are its implications?
  2. Show that Cobb-Doughlas Production Function exhibits both Hicks and Harrod neutral technical progress.
  3. “In view of economic uncertainties, Hirschman approach to economic development makes more sense.” Discuss.
  4. “The trade-off between environment and development remains unresolved.” Comment in view of the United States exiting from Paris Climate Agreement.

YEAR 2016

  1. Explain Kuznets’ inverted ‘U’ hypothesis. Is growth good for the poor? Explain.
  2. Under what conditions economic growth reduces employment growth? Discuss.
  3. Describe the growth path, which once the economy attains it, will give a higher level of per capita consumption than any other growth path for all time.
  4. “Technical progress in capital-intensive sector almost invariably reduces the real wage rate and increases the real return to capital. Technical progress in labour-intensive sector will lead to increase in real wage rate and decrease in the real return to capital.” Explain.
  5. To counteract under-development stagnation, discuss Leibenstein’s critical minimum effort theory.
  6. ‘’Pollution-income progression of agrarian communities (clean) to industrial economies (pollution intensive) to service economies (cleaner) would appear to be false if pollution increases again at the end due to higher levels of income and consumption of the people at large.’’ Discuss.
  7. Indicate the Ricardo legacy which is inherent in the Lewis model of economic development.

YEAR 2015

  1. Do you think that the root of Harrod’s instability problem lies in the assumption of wage- price rigidity? Give arguments in favour of your answer.
  2. How does carbon trading help in reducing environmental degradation?
  3. “Balanced and unbalanced growth strategies are not substitutes but complementary to each other.” Explain this statement.
  4. What are the advantages and disadvantages of capital mobility for developing countries?
  5. “As long as the substitution possibilities between foreign and domestic resources are limited, the dual-gap analysis is relevant.” Critically examine this statement.
  6. In an economy having two sectors, namely, goods-producing sector and Research and Development (R&D) sector, prove with the help of new growth theory that (i) both capital and aggregate output must grow at the same rate and (iii) per capita output must grow at the rate of growth of technology.
  7. What is indicative planning? In this context, explain how State and markets can play a synergetic role in economic development.
  8. (a) What do you mean by ‘green accounting’? Discuss how this concept can be incorporated in national income accounting.
    (b) Discuss the role of renewable energy resources in order to maintain environmental sustainability with special reference to India. (c) “Global warming will certainly increase the cry of the earth and the cry of the poor.” In this context, examine the international efforts to reduce global warming.