COURSE TITLE:
Economic Approach to Southeast Asia II
Year/Semester: 2025-2026/Fall and Winter
Class time: Tuesday 15:00-16:30
Room: Inamori 330
Format: Lecture and discussion
Target year: 1-5
Credits: 2
Course ID: G-AAA01 81323 LE31
INSTRUCTOR:
Instructor: Tomohiro Machikita
Affiliation: Center for Southeast Asian Studies, Kyoto University
Office: Inamori 221
Office hours: Tuesdays 16:30-17:30
OVERVIEW AND PURPOSE:
This course studies economics of Southeast Asia through the lens from economic development. This course studies quantitative analytical frameworks and use historical case studies to examine the role of geographic and institutional factors such as incentives, trade, community development, skills, migration, agglomeration of economic activities in understanding the performance of regions in developing vs developed economies and comparative institutional analysis of cities. We may cover related and recommended topics analyzing regional differences through geography and institutions answering questions such as: How urbanization relates to economic development? How institutional difference has persistent effects on economic development?
COURSE OBJECTIVES:
Through active participation in discussions and presentations of assigned papers, students will absorb the research designs of the most up-to-date study results, and each student will be involved in their own research thesis. Students will study the basic mechanisms of industrial development and prior empirical research, acquiring the basic knowledge that is needed to independently understand the latest research results.
TENTATIVE COURSE SCHEDULE AND CONTENTS:
Each class meeting will open with a presentation by the instructor, followed by discussion of the assigned textbook. Active class participation will thus form a major component of one’s overall grade for the course. Students submit a term paper on a topic of interest by the end of the semester.
Lecture 1 (Oct 7, 2025) Introduction and stylized facts about development and economic history of Southeast Asia.
Lecture 2 (Oct 14, 2025) Measuring and explaining development, growth, and poverty.
Lecture 3 (Oct 21, 2025) Economic geography and trade: history.
Lecture 4 (Oct 28, 2025) Economic geography and trade: theory.
Lecture 5 (Nov 4, 2025) Economic geography and trade: empirics.
Lecture 6 (Nov 11, 2025) Institutions and political economy: history.
Lecture 7 (Nov 18, 2025) Institutions and political economy: theory.
Lecture 8 (Nov 25, 2025) Institutions and political economy: empirics.
Lecture 9 (Dec 2, 2025) Firms, technology, and industrial development: history.
Lecture 10 (Dec 9, 2025) Firms, technology, and industrial development: theory.
Lecture 11 (Dec 16, 2025) Firms, technology, and industrial development: empirics.
Lecture 12 (Dec 23, 2025) Labor, unemployment, and informality: history.
Lecture 13 (Jan 6, 2026) Labor, unemployment, and informality: theory.
Lecture 14 (Jan 13, 2026) Labor, unemployment, and informality: empirics.
Lecture 15 (Jan 20, 2026) Final exam.
ASSIGNED READINGS:
This is tentative. All readings will be uploaded before the semester begins. Readings marked by asterisks (*) are required. Others are recommended. Main textbooks are as follows.
Industrialization and Industrial Policy
Case: TSMC
Industrial Policy in the Global Semiconductor Sector, Pinelopy Goldberg, Reka Juhasz, Nathan Lane, Giulia Lo Forte, and Jeff Thurk, Aug. 2024, NBER Working Paper No. 32651. https://bpb-us-w2.wpmucdn.com/campuspress.yale.edu/dist/6/3741/files/2024/08/Semiconductors_Paper.pdf
*Réka Juhász, Mara P. Squicciarini, and Nico Voigtländer, Technology Adoption and Productivity Growth: Evidence from Industrialization in France, Journal of Political Economy 2024 132:10, 3215-3259, https://www.journals.uchicago.edu/doi/abs/10.1086/730205?journalCode=jpe
*Nathan Lane, Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea, The Quarterly Journal of Economics, Volume 140, Issue 3, August 2025, Pages 1683–1741, https://doi.org/10.1093/qje/qjaf025
Barwick, Panle Jia, Myrto Kalouptsidi, and Nahim Bin Zahur. 2024. "Industrial Policy: Lessons from Shipbuilding." Journal of Economic Perspectives 38 (4): 55–80. DOI: 10.1257/jep.38.4.55
Juhász, Réka, and Nathan Lane. 2024. "The Political Economy of Industrial Policy." Journal of Economic Perspectives 38 (4): 27–54. DOI: 10.1257/jep.38.4.27
Reed, Tristan. 2024. "Export-Led Industrial Policy for Developing Countries: Is There a Way to Pick Winners?" Journal of Economic Perspectives 38 (4): 3–26. DOI: 10.1257/jep.38.4.3
Bown, Chad P., and Dan Wang. 2024. "Semiconductors and Modern Industrial Policy." Journal of Economic Perspectives 38 (4): 81–110. DOI: 10.1257/jep.38.4.81
Sylla, Richard. 2024. "Alexander Hamilton's Report on Manufactures and Industrial Policy." Journal of Economic Perspectives 38 (4): 111–30. DOI: 10.1257/jep.38.4.111
OPTIONAL READINGS:
Theory:
*Debraj Ray, Development Economics. Princeton University Press, 1998
*Avner Greif, Institutions and the Path to the Modern Economy Lessons from Medieval Trade. Cambridge University Press, 2006
*John McMillan. 2002. Reinventing the Bazaar: The Natural History of Markets. W. W. Norton & Company.
*Abhijit Banerjee, Roland Benabou, Dilip Mookherjee, (ed). 2006. Understanding Poverty. Oxford University Press.
History:
Samphantharak, Krislert, 2021. Economic Development of Southeast Asia. Book Project.
Reid, Anthony. 2015. A History of Southeast Asia: Critical Crossroads (Blackwell History of the World), Wiley-Blackwell.
Reid, Anthony. 1990. Southeast Asia in the Age of Commerce, 1450-1680 Volume One: The Lands below the Winds. Yale University Press.
Reid, Anthony. 1995. Southeast Asia in the Age of Commerce, 1450-1680 Volume 2, Expansion and Crisis. Yale University Press.
Lieberman, Victor. 2003. Strange Parallels Southeast Asia in Global Context, c.800-1830, Volume 1: Integration on the Mainland. Cambridge University Press.
Lieberman, Victor. 2009. Strange Parallels Southeast Asia in Global Context, c.800-1830, Volume 2: Mainland Mirrors: Europe, Japan, China, South Asia, and the Islands. Cambridge University Press.
Bates, Robert H., Avner Greif, Margaret Levi, Jean-Laurent Rosenthal, and Barry R. Weingast. Analytic Narratives, Princeton: Princeton University Press, 1998.
Daron Acemoglu and James A. Robinson. 2012. Why Nations Fail: Origins of Power, Poverty and Prosperity. Currency.
Daron Acemoglu and James A. Robinson. 2019. The Narrow Corridor: States, Societies, and the Fate of Liberty. Viking.
Jean Dreze and Amartya Sen. 2013. An Uncertain Glory: India and Its Contradictions. Princeton University Press.
Empirics:
Bryan, Gharad, Edward Glaeser, and Nick Tsivanidis. 2019. "Cities in the Developing World." NBER Working Paper No. 26390.
Henderson, Vernon and Matthew A. Turner. 2020. "Urbanization in the developing world: Too early or to slow?" Journal of Economic Perspectives.
Marx, Benjamin, Thomas Stoker and Tavneet Sur. 2013. "The Economics of Slums in the Developing World." Journal of Economic Perspectives 27(4): 187-210.
Bazzi, Samuel, Arya Gaduh, Alexander D. Rothenberg, Maisy Wong, 2016. "Skill Transferability, Migration, and Development: Evidence from Population Resettlement in Indonesia." American Economic Review, 106(9): 2658-2698.
Bazzi, Samuel, Arya Gaduh, Alexander D. Rothenberg, Maisy Wong, 2019. "Unity in Diversity? How Intergroup Contact Can Foster Nation Building," American Economic Review, 109(11): 3978-4025.
Dell, Melissa. 2010. “The Persistent Effects of Peru's Mining Mita.” Econometrica 78(6): 1863-1903. MIT News- The deep roots of inequality.
Dell, Melissa, Nathan Lane, and Pablo Querubin. 2018. “The Historical State, Local Collective Action, and Economic Development in Vietnam.” Econometrica, 86(6): 2083-2121.
Dell, Melissa, and Benjamin Olken. 2020. “The Development Effects of the Extractive Colonial Economy: The Dutch Cultivation System in Java.” Review of Economic Studies, 87(1): 164-203. MIT News- The complex effects of colonial rule in Indonesia.
Dippel, Christian, Avner Greif, Dan Trefler, 2020. "Outside Options, Coercion, and Wages: Removing the Sugar Coating," The Economic Journal. 130, issue 630: 1678-1714.
Eric Chaney. 2013. Revolt on the Nile: Economic Shocks, Religion and Political Power. Econometrica. 81(5): 2033-2053.
Rachel Kranton and Anand Swamy. “Contracts, Hold-Up and Exports: Textiles and Opium in Colonial India,” American Economic Review 98 (3), June 2008, pp. 967-89.
Sierra, Raúl Sánchez de la. “Whither Formal Contracts?.” Econometrica, 89, .no 5, (Econometric Society: 2021), 2341-2373. https://doi.org/10.3982/ECTA16083
Jensen, Robert, and Nolan H. Miller. 2018. "Market Integration, Demand, and the Growth of Firms: Evidence from a Natural Experiment in India." American Economic Review, 108 (12): 3583-3625. DOI: 10.1257/aer.20161965
Jensen, Robert. 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector." The Quarterly Journal of Economics, 122(3): 879-924. DOI: 10.1162/qjec.122.3.879
Bloom, Nicholas, Benn Eifert, Aprajit Mahajan, David McKenzie, and John Roberts. 2013. "Does Management Matter? Evidence from India." The Quarterly Journal of Economics, 128(1): 1-51. DOI: 10.1093/qje/qjs044 (VoXDev)
Bloom, Nicholas, Aprajit Mahajan, David McKenzie and John Roberts. 2020. Do Management Interventions Last? Evidence from India. AEJ: Applied Economics, 12(2):198-219.
Bloom, Nicholas, Aprajit Mahajan, David McKenzie, and John Roberts. 2010. "Why Do Firms in Developing Countries Have Low Productivity?" American Economic Review, 100 (2): 619-23. DOI: 10.1257/aer.100.2.619
Giorcelli, Michela. 2019. "The Long-Term Effects of Management and Technology Transfers." American Economic Review, 109 (1): 121-52. DOI: 10.1257/aer.20170619
Karpoff, Jonathan. 2001. Public Versus Private Initiative in Arctic Exploration: The Effects of Incentives and Organizational Structure Journal of Political Economy 109(1): 38-78.
Atkin, David, Azam Chaudhry, Shamyla Chaudry, Amit K. Khandelwal, and Eric Verhoogen. 2017. "Organizational Barriers to Technology Adoption: Evidence from Soccer-Ball Producers in Pakistan." The Quarterly Journal of Economics, 132(3): 1101-1164. DOI: 10.1093/qje/qjx010
Chan, David C. 2016. "Teamwork and Moral Hazard: Evidence from the Emergency Department." Journal of Political Economy, 124(3): 734-770. DOI: 10.1086/685910.
Chan, David C. 2019. "The Efficiency of Slacking Off: Evidence from the Emergency Department." Econometrica, 86(3): 997-1030. DOI: 10.3982/ECTA13565
COURSE REQUIREMENTS:
Without imposing a strict requirement, I assume familiarity with the concepts taught in basic undergraduate-level Statistics, Econometrics, and Microeconomics. This is an economics class that employs quantitative reasoning. Students should read the papers that are assigned for each upcoming class and participate in class discussions.
EVALUATION METHODS AND POLICY:
Grades will be based on attendance/participation and final exam. Final exam will be short essays. Active and constructive participation during the class discussions will influence your grade as well.
TEXTBOOKS:
All of the required readings are available on electronic reserve via Panda. Supplementary to course content, students are also encouraged to pursue self-study on statistical methods, qualitative research methods, and microeconomics in order to better understand related academic papers. Please check the following textbooks: (1) Varian's Microeconomic Analysis; (2) Gibbons' Game Theory for Applied Economists; (3) Cunningham's Causal Inference: The Mixtape; (4) Hernan and Robins' Causal Inference: What If; (5) Angrist and Pischke's Mostly Harmless Econometrics.
OFFICE HOURS:
Tuesdays 16:30-17:30, and by appointment.