This second edition of Development Economics: Theory and Practice continues to provide students and practitioners with the perspectives and tools they need to think analytically and critically about the current major economic development issues in the world.

Alain de Janvry and Elisabeth Sadoulet identify seven key dimensions of development—growth, poverty, vulnerability, inequality, basic needs, sustainability, and quality of life—and use them to structure the contents of the text. The book gives a historical perspective on the evolution of thought in development. It uses theory and empirical analysis to present readers with a full picture of how development works, how its successes and failures can be assessed, and how alternatives can be introduced. The authors demonstrate how diagnostics, design of programs and policies, and impact evaluation can be used to seek new solutions to the suffering and violence caused by development failures.

In the second edition, more attention has been given to ongoing developments, such as:

  • pursuit of the Sustainable Development Goals
  • continuously rising global and national inequality
  • health as a domestic and international public good
  • cash transfers for social protection
  • carbon trading for sustainability

This text is fully engaged with the most cutting-edge research in the field and equips readers with analytical tools for impact evaluation of development programs and policies, illustrated with numerous examples. It is underpinned throughout by a wealth of student-friendly features, including case studies, quantitative problem sets, end-of-chapter questions, and extensive references. Excel and Stata exercises are available as digital supplements for students and instructors.

This unique text is ideal for those taking courses in development economics, economic growth, and development policy, and will provide an excellent foundation for those wishing to pursue careers in development.

chapter |17 pages


chapter Chapter One|36 pages

What Is Development?

Indicators and Issues

chapter Chapter Two|28 pages

The State of Development

chapter Chapter Three|23 pages

History of Thought in Development Economics

chapter Chapter Four|34 pages

Impact Evaluation of Development Policies and Programs

chapter Chapter Five|27 pages

Poverty and Vulnerability Analysis

chapter Chapter Six|24 pages

Inequality and Inequity

chapter Chapter Seven|29 pages

International Trade and Industrialization Strategies

chapter Chapter Eight|27 pages

Explaining Economic Growth

The Macro Level

chapter Chapter Nine|11 pages

Exchange Rate Policies and Development

chapter Chapter Ten|21 pages

The Economics of Farm Households

chapter Chapter Eleven|23 pages

Population and Development

chapter Chapter Twelve|25 pages

Labor and Migration

chapter Chapter thirteen|27 pages

Financial Services for the Poor

chapter Chapter Fourteen|26 pages

Social Programs and Targeting

chapter Chapter Fifteen|23 pages

Sustainable Development and the Environment

chapter Chapter Sixteen|17 pages

Common Property Resources and Determinants of Cooperation

chapter Chapter Seventeen|29 pages

Human Capital:

Education and Health

chapter Chapter Eighteen|29 pages

Agriculture for Development

chapter Chapter Nineteen|26 pages

Development Aid and Its Effectiveness

chapter Chapter Twenty|15 pages

Institutional Innovations and Development

chapter Chapter Twenty One|28 pages

Political Economy and the Role of the State