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Reading summaries - Assignment Example

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Besley and fellow researchers who state that in order to alleviate poverty, policy based reforms are necessary. They state that the government needs to create policies that can help in increasing the opportunities for the poor individuals…
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Download file to see previous pages... This article has been authored by Rodrik and in this article the researcher states that policy reforms are not the only tools that can help a developing nation in increasing development. The author states that in order for policies to take effect, institutions that are in the backdrop are ill structured and thus any policy can only have a long lasting effect if the institutions are solid in nature. The author states that various policies such as the policy of trade liberalization cannot work effectively if there is lack of fiscal institutions and similarly if there is lack of a proper capital market then funds will not be allocated to those areas that need to be expanded (Rodrik 978).
This is a discussion paper authored by Finn Tarp and in this paper the author argues that it is not necessary that foreign aid only works in those countries where good policies have been implemented. This is because Tarp believes that impact of foreign trade should not assessed in connection with good or bad policies because the policies that might be good might provide misleading information because it is not necessary that in developing nations there are institutions that are implementing these policies properly.
In this article the researcher, Ravallion, identifies a new way of doing economics as identified by Banerjee as well as Duflo and according to this new way, decisions regarding economy should be based on randomized control trials or tests. The author states that performing randomized tests in order to conduct research related to economics is not new but these tests have provided surprising results. These tests are considered as important in order to identify causal relationship between different economic variables because these tests are easy to conduct as well as easy to explain. Another reason of these tests being good to perform causal study is that the ...Download file to see next pagesRead More
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