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Development Economics: Step-by-Step Guide

10 steps on why some countries grow rich and others stay poor: measuring development, poverty and inequality, growth theory, industrial policy, trade, the resource curse, leapfrogging, institutions, development finance and sustainability. Every step is built around real countries, with worked examples, six practice questions with worked answers, a quick self-check and the matching case studies from our 100 Economics Case Studies pack.

Unit 1: Measuring and Explaining DevelopmentSteps 1–3 · indicators, poverty, inequality and growth models
  1. What Is Development?
  2. Poverty and Inequality
  3. Theories of Growth and Structural Change
Unit 2: Strategies for GrowthSteps 4–7 · industrial policy, trade, resources and services
  1. Industrial Policy and the Developmental State
  2. Trade, Export-Led Growth and the Terms of Trade
  3. Natural Resources and the Resource Curse
  4. Services, Technology and Leapfrogging
Unit 3: Institutions, Finance and SustainabilitySteps 8–10 · governance, aid, debt, microfinance and the environment
  1. Institutions, Conflict and Governance
  2. Financing Development: Aid, FDI, Debt and Microfinance
  3. Sustainable and Urban Development

21 real-world case studies, mapped to the guide

Development economics is best learned through countries. Each step below uses case studies from Economics Case Studies: 100 Real-World Examples with Expert Analysis, where every case has key data, the theory applied, an evaluation, exam guidance and academic references.

StepCase studies in the pack
1. What is development?59 Bhutan’s Gross National Happiness · 20 China’s Air Pollution Crisis
2. Poverty and inequality63 China’s Four Decades of Growth · 76 South Africa’s Structural Unemployment
3. Growth theories63 China’s Four Decades of Growth · 2 Singapore’s Land Constraint · 94 India’s IT Leapfrog
4. Industrial policy64 South Korea’s Chaebol Model · 66 Ethiopia’s Growth Story 2004–2019
5. Trade and development89 Bangladesh Garment Industry · 33 Ethiopia’s Coffee Sector
6. Resource curse1 Venezuela’s Oil Curse · 2 Singapore’s Land Constraint
7. Services and leapfrogging65 India’s IT Sector Growth · 94 India’s IT Leapfrog · 53 India’s Generic Drug Industry
8. Institutions and governance92 Rwanda’s Economic Transformation · 67 Argentina’s Boom and Bust Cycles
9. Financing development93 The Grameen Bank · 95 China’s Belt and Road Initiative · 86 Pakistan’s IMF Bailout 2023
10. Sustainable and urban development98 Costa Rica’s Ecosystem Services · 97 The Aral Sea Disaster · 21 Medellín’s Urban Cable Cars
Economics Case Studies: 100 Real-World Examples coverGet all 21 development cases, plus 79 more across micro, macro, trade and finance: 100 Economics Case Studies for $9 (was $15).Get the 100 cases · $9

The pack has a full Development Economics section and suits AP, A-level, IB and undergraduate economics, essays, dissertations and teaching. Prefer to browse first? See the case studies overview.

Which step do I need?

You are…Steps
Writing an essay on GDP vs other indicators1 and 2
Revising A-level or IB “economic development” topics1, 2, 5, 6 and 9
Taking an undergraduate development moduleAll 10 in order
Evaluating a country’s growth strategy3, 4, 5 and 8
Writing about aid, debt or the IMF9
Writing about climate and development1 and 10
Choosing a development dissertation topicAny step, then the Research Methods guide

Every step follows the same plan: the key ideas, a worked example, the real-world case studies to cite, a common mistake, an exam tip, six practice questions with worked answers and a three-question self-check. Need the macro foundations first? See the Macroeconomics guide.

Economics of War coverStudying conflict and development? See the Economics of War and Conflict collection.Explore · $9