MICHAEL P. TODARO
STEPHEN C. SMITH
ECONOMIC
DEVELOPMENT
THIRTEENTH EDITION
, ECONOMIC
DEVELOPMENT THIRTEENTH EDITION
MICHAEL P. TODARO STEPHEN C. SMITH
New York University The George Washington University
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
,PEARSON EDUCATION LIMITED
KAO Two
KAO Park
Harlow CM17 9SR
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
_________________________________
Twelfth edition published 2015 (print and electronic)
Thirteenth edition published 2020 (print and electronic)
© Michael P. Todaro and Stephen C. Smith 2015, 2020 (print and electronic)
The rights of Michael P. Todaro and Stephen C. Smith to be identified as authors of this work have
been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a
retrieval system, distribution or transmission in any form or by any means, electronic, mechanical,
recording or otherwise, permission should be obtained from the publisher or, where applicable, a
licence permitting restricted copying in the United Kingdom should be obtained from the Copyright
Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN.
The ePublication is protected by copyright and must not be copied, reproduced, transferred,
distributed, leased, licensed or publicly performed or used in any way except as specifically
permitted in writing by the publishers, as allowed under the terms and conditions under which it
was purchased, or as strictly permitted by applicable copyright law. Any unauthorised distribution
or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those
responsible may be liable in law accordingly.
All trademarks used herein are the property of their respective owners. The use of any trademark
in this text does not vest in the author or publisher any trademark ownership rights in such
trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this
book by such owners.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292-29115-4 (print)
978-1-292-29120-8 (PDF)
978-1-292-29119-2 (ePub)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Todaro, Michael P, author. | Smith, Stephen C., 1955- author. Title: Economic development /
Michael P. Todaro, New York University, Stephen C. Smith, The George Washington University.
Description: Thirteenth Edition. | Hoboken : Pearson, 2020. | Revised edition of the authors'
Economic development, [2015] | Includes bibliographical references and index.
Identifiers: LCCN 2019035607 | ISBN 9781292291154 (paperback) | ISBN
9781292291208 | ISBN 9781292291192 (epub)
Subjects: LCSH: Economic development. | Developing countries—Economic policy.
Classification: LCC HD82 .T552 2020 | DDC 338.9009172/4—dc23
LC record available at https://lccn.loc.gov/2019035607
10 9 8 7 6 5 4 3 2 1
24 23 22 21 20
Cover: oxygen/Moment/Getty Images
Print edition typeset in 10/12 Palatino LT Std by SPi Gobal
Printed and bound by Vivar in Malaysia
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
, Brief Contents
1 Introducing Economic Development: A Global Perspective 1
2 Comparative Economic Development 35
3 Classic Theories of Economic Growth and Development 116
4 Contemporary Models of Development and Underdevelopment 164
5 Poverty, Inequality, and Development 220
6 Population Growth and Economic Development: Causes,
Consequences, and Controversies 293
7 Urbanisation and Rural–Urban Migration: Theory and Policy 340
8 Human Capital: Education and Health in Economic Development 390
9 Agricultural Transformation and Rural Development 447
10 The Environment and Development 503
11 Development Policymaking and the Roles of Market, State, and
Civil Society 557
12 International Trade Theory and Development Strategy 615
13 Balance of Payments, Debt, Financial Crises, and Sustainable
Recovery: Principles, Cases and Policies 697
14 Foreign Finance, Investment, Aid, and Conflict: Controversies
and Opportunities 749
15 Finance and Fiscal Policy for Development 800
iii
STEPHEN C. SMITH
ECONOMIC
DEVELOPMENT
THIRTEENTH EDITION
, ECONOMIC
DEVELOPMENT THIRTEENTH EDITION
MICHAEL P. TODARO STEPHEN C. SMITH
New York University The George Washington University
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
,PEARSON EDUCATION LIMITED
KAO Two
KAO Park
Harlow CM17 9SR
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk
_________________________________
Twelfth edition published 2015 (print and electronic)
Thirteenth edition published 2020 (print and electronic)
© Michael P. Todaro and Stephen C. Smith 2015, 2020 (print and electronic)
The rights of Michael P. Todaro and Stephen C. Smith to be identified as authors of this work have
been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage in a
retrieval system, distribution or transmission in any form or by any means, electronic, mechanical,
recording or otherwise, permission should be obtained from the publisher or, where applicable, a
licence permitting restricted copying in the United Kingdom should be obtained from the Copyright
Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN.
The ePublication is protected by copyright and must not be copied, reproduced, transferred,
distributed, leased, licensed or publicly performed or used in any way except as specifically
permitted in writing by the publishers, as allowed under the terms and conditions under which it
was purchased, or as strictly permitted by applicable copyright law. Any unauthorised distribution
or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those
responsible may be liable in law accordingly.
All trademarks used herein are the property of their respective owners. The use of any trademark
in this text does not vest in the author or publisher any trademark ownership rights in such
trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this
book by such owners.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292-29115-4 (print)
978-1-292-29120-8 (PDF)
978-1-292-29119-2 (ePub)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Todaro, Michael P, author. | Smith, Stephen C., 1955- author. Title: Economic development /
Michael P. Todaro, New York University, Stephen C. Smith, The George Washington University.
Description: Thirteenth Edition. | Hoboken : Pearson, 2020. | Revised edition of the authors'
Economic development, [2015] | Includes bibliographical references and index.
Identifiers: LCCN 2019035607 | ISBN 9781292291154 (paperback) | ISBN
9781292291208 | ISBN 9781292291192 (epub)
Subjects: LCSH: Economic development. | Developing countries—Economic policy.
Classification: LCC HD82 .T552 2020 | DDC 338.9009172/4—dc23
LC record available at https://lccn.loc.gov/2019035607
10 9 8 7 6 5 4 3 2 1
24 23 22 21 20
Cover: oxygen/Moment/Getty Images
Print edition typeset in 10/12 Palatino LT Std by SPi Gobal
Printed and bound by Vivar in Malaysia
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
, Brief Contents
1 Introducing Economic Development: A Global Perspective 1
2 Comparative Economic Development 35
3 Classic Theories of Economic Growth and Development 116
4 Contemporary Models of Development and Underdevelopment 164
5 Poverty, Inequality, and Development 220
6 Population Growth and Economic Development: Causes,
Consequences, and Controversies 293
7 Urbanisation and Rural–Urban Migration: Theory and Policy 340
8 Human Capital: Education and Health in Economic Development 390
9 Agricultural Transformation and Rural Development 447
10 The Environment and Development 503
11 Development Policymaking and the Roles of Market, State, and
Civil Society 557
12 International Trade Theory and Development Strategy 615
13 Balance of Payments, Debt, Financial Crises, and Sustainable
Recovery: Principles, Cases and Policies 697
14 Foreign Finance, Investment, Aid, and Conflict: Controversies
and Opportunities 749
15 Finance and Fiscal Policy for Development 800
iii
