Last updated: January 2, 2026
COURSE TITLE:
Economic Approach to Southeast Asia II PhD sequence
Year/Semester: 2026-2027/Fall and Winter
Class time: Monday 13:15-14:45
Room: Inamori 3rd Floor Small Meeting Room I (R330)
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 (CSEAS), Kyoto University
Office: Inamori 221
Office hours: Tuesdays 15:00-17:00 and by appointment
OVERVIEW AND PURPOSE:
This course offers development microeconomics for area studies, interdisciplinary studies, and comparative institutional analysis. This course studies the use of data and economic theory on workers and firms in research on market integration, productivity differences, long-term relationship, productivity spillovers, and other areas of development economics. A key goal is to help students develop the capability to identify interesting research questions/research strategies for area studies, interdisciplinary studies, and comparative institutional analysis from the viewpoints of organizational economics: incentives; agency; leadership; transaction costs. Topics cover management, entrepreneurship, relational contracts, and macroeconomic growth. Lectures has a mix of important previous contributions and new papers that seek to advance the frontier. Homework assignments and final papers aim to build proficiency in the use of data and economic theory to address issues of area studies (or interdisciplinary studies, or comparative institutional analysis) and give them first-hand experience in considering research questions and strategies. There will be lectures, presentations by class participants, and discussion.
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.
COURSE REQUIREMENTS:
Participants will be expected to be prepared to join in discussion based on the reading assignments. Depending on the class size, they will be assigned a presentation of the major points of the reading and will be expected to lead the discussion, once or twice depending on the size of the class. The final paper will ask the participants to review the themes in relation to their own research interests. Without imposing a strict requirement, I assume familiarity with the concepts taught in basic undergraduate-level Statistics, Econometrics (Cunningham's Causal Inference: The Mixtape; Hernan and Robins' Causal Inference: What If; Angrist and Pischke's Mostly Harmless Econometrics), and Microeconomics (Varian's Microeconomic Analysis; Gibbons' Game Theory for Applied Economists).
EVALUATION METHODS AND POLICY:
Grades will be based on attendance/participation and final paper. Participation in class discussion (30%), homework and class presentation (30%), and final paper (40%). Active and constructive participation during the class discussions will influence your grade as well.
TEXTBOOKS:
Texts will be distributed before each cluster. 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.
OFFICE HOURS:
Tuesdays 15:00-17:00, and by appointment.
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 5, 2026) Introduction
Macroeconomic facts
Theory of markets, organization, and network
Verhoogen, Eric. 2023. "Firm-Level Upgrading in Developing Countries," Journal of Economic Literature, vol 61(4), pages 1410-1464.
Breza, Emily and Supreet Kaur, 2025. "Labor Markets in Developing Countries," Annual Review of Economics, Vol. 17: 747-776.
Lecture 2-3 (Oct 19, 2026, Oct 26, 2026)
Management, agency problems, and entrepreneurship in developing economies
Alan Benson and Kathryn Shaw 2025. What Do Managers Do? An Economist's Perspective, Annual Review of Economics, Vol. 17: 635-664.
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
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." American Economic Journal: Applied Economics 12 (2): 198–219. DOI: 10.1257/app.20180369
Giorcelli, Michela. 2019. "The Long-Term Effects of Management and Technology Transfers." American Economic Review, 109 (1): 121-52. DOI: 10.1257/aer.20170619
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
de Mel, S., McKenzie, D. J., and Woodruff, C. (2008). Returns to Capital in Microenterprises: Evidence from a Field Experiment. The Quarterly Journal of Economics, 123(4):pp. 1329–1372.
Banerjee, A. V. and A. F. Newman (1993, April). Occupational Choice and the Process of Development. Journal of Political Economy 101 (2): 274-298.
Oriana Bandiera, Robin Burgess, Narayan Das, Selim Gulesci, Imran Rasul, Munshi Sulaiman, Labor Markets and Poverty in Village Economies, Quarterly Journal of Economics, 132(2): 811–870.
Clare Balboni, Oriana Bandiera, Robin Burgess, Maitreesh Ghatak, Anton Heil, Why Do People Stay Poor?, The Quarterly Journal of Economics, 137(2): 785–844.
Banerjee, A. and Duflo, E. (2014). Do Firms Want to Borrow More? Testing Credit Constraints Using a Directed Lending Program. Review of Economic Studies, 81:572–607.
Felkner, John S. and Robert M. Townsend. 2011. "The Geographic Concentration of Enterprise in Developing Countries." The Quarterly Journal of Economics, 126(4): 2005–2061.
Lecture 4-6 (Nov 2, 2026, Nov 9, 2026, Nov 16, 2026)
Relational contracts, transactions, and networks in developing economies
McMillan, J. and Woodruff, C. (1999). Interfirm Relationships and Informal Credit in Vietnam. The Quarterly Journal of Economics, 114(4):1285–1320.
Banerjee, A. and Duflo, E. (2000). Reputation Effects and the Limits of Contracting: A Study of the Indian Software Industry. The Quarterly Journal of Economics, 115:989–1017.
Macchiavello, R. and A. Morjaria (2015). The Value of Relationships: Evidence from a Supply Shock to Kenyan Rose Exports. American Economic Review 105 (9): 2911-2945.
Macchiavello, R. and A. Morjaria (2021). Competition and Relational Contracts in the Rwanda Coffee Chain. The Quarterly Journal of Economics 136 (2), 1089-1143.
Avner Greif, Institutions and the Path to the Modern Economy Lessons from Medieval Trade. Cambridge University Press, 2006.
Greif, Avner. Contract Enforceability and Economic Institutions in Early Trade: The Maghribi Traders' Coalition, The American Economic Review, Vol. 83, No. 3 (Jun., 1993), 525-548.
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, (2021), 2341-2373.
Dippel, Christian, Avner Greif, Dan Trefler, 2020. "Outside Options, Coercion, and Wages: Removing the Sugar Coating," The Economic Journal. 130, issue 630: 1678-1714.
Diego Puga, Daniel Trefler, International Trade and Institutional Change: Medieval Venice’s Response to Globalization, The Quarterly Journal of Economics, Volume 129, Issue 2, May 2014, Pages 753–821,
Lecture 7-9 (Dec 7, 2026, Dec 14, 2026, Dec 21, 2026)
Market integration, trade, reallocation, misallocation, and growth
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
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
Bandiera, Oriana, Andrea Prat, Stephen Hansen and Raffaella Sadun. 2020. CEO Behavior and Firm Performance. Journal of Political Economy 128, no. 4 (April): 1325-1369.
Verhoogen, E. (2008). Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector. Quarterly Journal of Economics, 123(2):489–530.
Bustos, P. (2011). Trade Liberalization, Exports and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms. American Economic Review, 101(1):304–340.
Atkin, D., Khandelwal, A. K., and Osman, A. (2017b). Exporting and Firm Performance: Evidence from a Randomized Trial. Quarterly Journal of Economics, 132(2):551–615.
Kugler, M. and Verhoogen, E. (2012). Prices, Plant Size and Product Quality. Review of Economic Studies, 79(1):307–339.
Alonso Alfaro-Ureña, Isabela Manelici, Jose P Vasquez, The Effects of Joining Multinational Supply Chains: New Evidence from Firm-to-Firm Linkages, The Quarterly Journal of Economics, Volume 137, Issue 3, August 2022, Pages 1495–1552, https://doi.org/10.1093/qje/qjac006
Hsieh, C.-T. and Klenow, P. J. (2009). Misallocation and Manufacturing TFP in China and India. Quarterly Journal of Economics, 124(4):pp. 1403–1448.
Hsieh, C.-T. and Olken, B. A. (2014). The Missing ‘Missing Middle’. Journal of Economic Perspectives, 28(3):89–108.
Hsieh, C.-T. and Klenow, P. J. (2014). The Life Cycle of Plants in India and Mexico. Quarterly Journal of Economics, 129(3):1035–1084.
Lecture 10-11 (Jan 4, 2027, Jan 18, 2026)
Student presentations and final paper