Year III

Degree Programme: Bachelor of Arts Honours in Economics

Year III
Semester I

ECON 3101.3 Development Theory

 

Number of Credits – 03

Prerequisites – ECON 1101.3, ECON 1201.3

Compulsory/Optional: Optional

This course focuses on the concept of development, development theories and aspects of practices in the real world. Equally important is the interplay between theory and practice and the outcome of this relationship. The course provides a comprehensive survey of development thinking from ‘classical’ development ideas to alternative and post development theories. The course then attempts to critically review contemporary debates about development, including the link between modernity and development, participation, empowerment, gender and the role of the development practitioner.

Recommended Readings

  • Agrawel, A.N, and Lal Kundan, (1977), Economics of Development and Planning, New Delhi: Vikas Publishing House
  • Meier G, (1996), leading issues in Economic Development, Oxford University Press
  • Tadro M.P,(1994), Development in the Third world, Longman, New York
  • UNDP (United Nations Development Programme )  Human Development Report, World Bank , Oxford University Press, New York.
  • World Bank, World Development Report

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3102.3 International Trade Theory

 

Number of Credits – 03

Prerequisites – ECON 1201.3

Compulsory/Optional: Optional

The course provides a theoretical analysis of international trade topics with references to empirical evidence. The course covers the main theories of international trade and international trade policy. Students will learn the main empirical patterns of current international trade and how to access sources of this information. They will become familiar with the concept of comparative advantage, and study models showing how technological differences, differences in resource endowments, and economies of scale determine trade patterns and income distribution. The effects of various trade policy instruments on welfare will be analyzed. Students will acquire the problem-solving skills necessary to analyze these and similar matters.

Recommended Readings

  • Appleyard D.R, Field A.J, and Cobb S.L, (2006), International Economics, McGraw-Hill
  • Kenen P.B, (2000), The International Economy (4th edition), Cam bridge University Press
  • Krugman P.R. and Obstfeld M, (2006) International Economics: and Policy (international Edition), Person Education, Boston.
  • Salvatore D.(2003), International Economics (8th edition), John Wiley sons publishers, New York
  • Sodersten B and Geoffrey Reed, (1994), International Economics (international Edition), Macmillan press ltd, London

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3103.3 Monetary Economics

 

Number of Credits – 03

Prerequisites – ECON 1101.3, ECON 1201.3

Compulsory/Optional: Optional

The core objective of the course is to develop macroeconomic models of open economies. In particular, we shall learn how exchange rate, interest rate and output are determined simultaneously through the interaction of goods, money and foreign exchange markets. These models can be applied towards gaining an understanding of recent events such as the strengthening and subsequent weakening of the Sri Lankan Rupee.

Recommended Readings

  • Mankiw, N. G. (2007), Principles of Economics, 4th edition, Thomson, South-Western, Chapter 33 & 34.
  • Mankiw, N.G. (2007), Macroeconomics, 6th ed. Worth Publishers, Chapter 18.
  • Mishkin, F. S. (2010), The Economics of Money, Banking and Financial Markets, 9th Edition, Pearson, Chapter 12,13,14,19.
  • Parkin, M. (2010), Economics, 9th Edition, Pearson, Chapter 25.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3104.3 Environmental Economics

 

Number of Credits – 03

Prerequisites – ECON 2101.3

Compulsory/Optional: Optional

This course equips students with an understanding of the key economic principles and policies for managing natural resources; environmental valuation techniques; policy instruments for achieving environmental objectives and also economic interventions to address both climate change and natural disasters. The course exposes students to the environmental perspective of Sustainable Development and relates this perspective to Economic and Social objectives, describing the relationship between the economy and the environment.

Recommended Readings

  • Lesser, J. A., Dodds, D.E., Richard Jr., O.Z., (1997), Environmental Economics and Policy, Addison-Wesley educational publishers Inc.
  • Hanley, N., Jason, F. S., White, B., (1997), Environmental economics, in theory and practice, McMillan press Ltd.
  • Randall, A. (1987), Resource Economics, An Economic Approach to Natural resource and environmental policy, John Wiley and sons, New York.
  • අබේගුණවර්ධන හා අතුල සේනාරත්න : 2002, ස්වාභාවික සම්පත් පරිසර ආර්ථික විද්‍යාව, ඉමදුව පබ්ලිකේෂන්, කැස්බෑව.
  • හේමසිරි හා ගුණතිලක : 2000, පරිසර ආර්ථික විද්‍යාව, සඳුනි ප්‍රින්ටර්ස්, මහනුවර.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3105.3 Econometrics

 

Number of Credits – 03

Prerequisites – ECON 2204.3

Compulsory/Optional: Compulsory

This is a sub-discipline of Economics that provides the tools to test or validate economic theory, make forecasts or predictions and to assess policy options. This module will focus on learning and practicing basic Econometrics; the thrust will be largely practice rather than theory. Econometrics draws on mathematics, statistics and most importantly economic theory. The objective here is to introduce econometric theory at a very basic level and to afford you the opportunity to apply the tools using real world data.

Recommended Readings

  • Anna Koutsoyiannis, (1977). Theory of Econometrics, First and Second Editions, London and Basingstoke: The Macmillan Press Ltd.
  • Damodar N Gujarati, (2004). Basic Econometrics, Fourth Edition, Tata McGraw-Hill, New Delhi.
  • Wooldridge, Jeffrey M. Introductory Econometrics: A Modern Approach. 3rd ed. Mason, OH: Thomson/South-Western.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

Semester II

ECON 3201.3 Comparative Economic Development

 

Number of Credits – 03

Prerequisites – ECON 3101.3

Compulsory/Optional: Optional

This course investigates selected issues in comparative historical perspective over the 19th century and the first few decades of the 20th century. The course focuses on a set of countries, which followed clearly diverse trajectories and patterns of growth to achieve their industrial transition and compares the outcomes of these diverse trajectories on sectoral change, inter-sectoral relations, labour processes and industrial relations and also compares the role of the state in facilitating the respective trajectories.

Recommended Readings

  • Birnie, Arthur., (1935) An Economic History of the British Isles, Methuen & Co. ltd.,   London.
  • William.,(1954) The Economic Development of Japan, Growth and Structural Change (1868 – 1938), Princeton University Press, United States of America.
  • Snarr, T. Michael and Snarr, Neil D., (2002), Introducing global issues, Second edition, Lynne     Rienner publishers, United States of America.
  • Southgate, W. George.,(1958), English Economic History, J.M. Dent and Sons ltd., London.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3202.3 International Finance

 

Number of Credits – 03

Prerequisites – ECON 3102.3

Compulsory/Optional: Optional

This course develops core models of international finance, and surveys selected topics in international financial markets; exchange rates and purchasing power parity; equity and bond home biases; determinants of capital flows; sovereign debt crisis; speculative attacks and financial crises; contagion and financial linkages; exchange rate regimes and monetary policy choices; and the stability of the international financial system.

Recommended Readings

  • Salvatore, Domink (2004), International Economics (8th Ed), John Wiley & Sons Inc.
  • Sodersten, Bo and Geoffrey Reed (1994) , International Economics(3rd Ed), Macmillan Press Ltd.
  • Kenen, Peter B. (2000), the International Economy (4th Ed), Cambridge University Press.
  • Chacoliades, Militides (1990), International Money and Finance, Harper & Row, Publishers Inc.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3203.3 Financial Markets

 

Number of Credits – 03

Prerequisites – ECON 3103.3

Compulsory/Optional: Optional

This course aims to provide an understanding of the financial institutions and markets at global and local level. The course is divided into two broad modules i.e. Financial Institutions and Financial Markets. These two modules are further divided. Financial Institutions will cover banking, non-banking institutions and specialized credit institutions. On the other hand, Financial Markets module will aim to enhance students’ knowledge about money markets, stock market, bond market, foreign exchange market and financial derivate market.

Recommended Readings

  • Burton, Nesiba and Lombra; (2003)  An Introduction to Financial Markets and Institutions; 1st edition, Thomson
  • Fabozzi, Modigliani and Ferri; (1998) Foundations of Financial Markets and Institutions; Prentice Hall, 2nd edition,
  • Fedric S. Mishkin; (2018) Economics of Money and Banking, 12th Ed, Pearson

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3204.3 Resource Economics

 

Number of Credits – 03

Prerequisites – ECON 3104.3

Compulsory/Optional: Optional

This course studies the application of economic analysis to the management of the environmental and natural resources. It will consider the role of economic theory in understanding and solving environmental and resource problems and discuss empirical examinations of the theory. Policy implications will be addressed with particular attention paid to analyzing practical applications of the theories in different social, economic and political environments.

Recommended Readings

  • Lesser, Jonathan A., Daniel E. Dodds and Richard O. Zerbe, Jr. (1997), Environmental Economics and Policy, Addison-Wesley educational publishers Inc. Secondary:
  • Hanley, Nick, Jason F. Shogren and Ben White (1997), Environmental economics, in theory and practice, McMillan press Ltd.
  • Randall, A. (1987), Resource Economics, An Economic Approach to Natural resource and environmental policy, John Wiley and sons, New York.
  • අබේගුණවර්ධන හා අතුල සේනාරත්න : 2002, ස්වාභාවික සම්පත් පරිසර ආර්ථික විද්‍යාව, ඉමදුව පබ්ලිකේෂන්, කැස්බෑව.
  • හේමසිරි හා ගුණතිලක : 2000, පරිසර ආර්ථික විද්‍යාව, සඳුනි ප්‍රින්ටර්ස්, මහනුවර.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3205.3 Applied Econometrics

 

Number of Credits – 03

Prerequisites – ECON 3105.3

Compulsory/Optional: Compulsory

We will discuss various econometrics methods from both theoretical and practical aspects. The objective is to provide students with a solid theoretical and practical foundation for the interpretation of empirical evidence in economics. As such there is a dual focus on econometric theory and “hands-on” experience working with economic data. The centerpiece of the course is the multiple regression model. Statistical assumptions, theory, and results are developed, as are the necessary conditions for the valid application of regression analysis to economic data.

Recommended Readings

  • Damodar N Gujarati, (2004). Basic Econometrics, Fourth Edition, Tata McGraw-Hill, New Delhi.
  • Field, Andy (2013) Discovering Statistics Using IBM SPSS Statistics, Fourth ed, Sage
  • Rebecca M. Warner (2012).  Applied Statistics: From Bivariate Through Multivariate Techniques, Second Edition, Sage
  • Wooldridge, Jeffrey M. Introductory Econometrics: A Modern Approach. 3rd ed. Mason, OH: Thomson/South-Western, 2006.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3206.3 Economy of Sri Lanka

 

Number of Credits – 03

Prerequisites – None

Compulsory/Optional: Compulsory

The main objective of this course is to provide students with a sound knowledge on the economy of Sri Lanka and arrange sources and content of data and construct meaningful cause-effect relationships between the macro variables of the economy while developing arguments and make appropriate judgments where applicable in addressing practical issues of the economy.

Recommended Readings

There are no textbooks for Economy of Sri Lanka. Reports of the Central Bank of Sri Lanka and Census Department of Sri Lanka are mainly important as data sources

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 3207.3 Advanced Macroeconomics

 

Number of Credits – 03

Prerequisites – ECON 2201.3,                             ECON 2203.3

Compulsory/Optional: Compulsory

This course presents an in-depth analysis of modern macroeconomic theory. The course provides an advanced overview of the field as well as a rigorous analysis of the field’s foundations. Students who do not necessarily intend to specialize in macroeconomics are thereby exposed to the most up to date theories, while those students who plan to pursue higher research in macro-economics are well equipped with the latest techniques and know how. Topics to be discussed typically include: Rational expectations, Dynamic analysis, Business cycles, Nominal rigidities, Monetary Policy.

Recommended Readings

  • Miller, Roger Leroy and  DavidVanhoose. (2001). Macroeconomic  Theories, Policies and Applications, 2nd Edition, South-Western College  Publishing, Ohio
  • Minford, Patrick and David Peel. (2002). Advanced Macroeconomics: A primer, Edward Elgar, Cheltenham.
  • Romer, Paul. (2012). Advance Macroeconomics, 4th Edition, McGraw Hill, USA. (Downloadable in web)

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

SectionECON 3208.3 Policy Review Report

 

Number of Credits – 03

Prerequisites – ECON 2101.3, ECON 2201.3

General Degree Course Unit 

The main objective of this course is to provide students with a knowledge on reviewing economic policies national policies, provide policy recommendations and make needs assessments within the theoretical framework of Economics and train them to write policy review, policy recommendation and needs assessment reports.

Recommended Readings

Students are free to read from any standard source to have a comprehensive knowledge on writing these reports.

Lectures: 30 Hours

Tutorials: 15 Hours

Continous Assesments: 20%

Final Assessment: 80%

ECON 0099.3 – Independent Research phase I

 

Number of Credits – 03

Prerequisites – None

Compulsory/Optional: Compulsory

The primary objective of this course is to develop a research orientation among the scholars and to acquaint them with fundamentals of research methods. Specifically, the course aims at introducing them to the basic concepts used in research and to scientific social research methods and their approach. It includes discussions on sampling techniques, research designs and techniques of analysis.

Recommended Readings

  • American Psychological Association. (2010). Publication Manual of the American Psychological Association (Sixth edition). Washington, DC: Author.
  • Kumar, R. (2005). Research Methodology: A step by step guide for beginners (Second ed.). Delhi: Pearson Education.
  • Taylor, B., Sinha, G. & Ghoshal, T. (2007). Research Methodology: A Guide for Researchers in Management and Social Sciences. New Delhi: Prentice-Hall of India Pvt Ltd.

Lectures: 30 Hours

Tutorials: 15 Hours

Formative Assessment: 40%

Summative Assessment : 60%