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Home » UPSC Competitive Exams » Indian Economic Service/Indian Statistical Service Examination » Syllabus of General Economics-II for Indian Economic Service/Indian Statistical Service Examination

Syllabus of General Economics-II for Indian Economic Service/Indian Statistical Service Examination

1. Concept of economic growth and development and their measurement

- Characteristics of less developed countries (LDCs) and obstacles to their development - growth, poverty and income distribution - Theories of growth: Classicial Approach: Adam Smith, Marx and Schumpeter - Neo-classical Approach: Robinson, Solow, Kaldor and Harrod-Domar - Theories of Economic Development: Rostow, Rosenstein-Rodan, Nurkse, Hirschman, Leibenstein and Arthur Lewis, Amin and Frank (Dependency school); respective role of the State and the market.

2. International Economics:

Gains from International Trade, terms of trade, trade policy, international trade and economic development - Theories of International Trade: Ricardo, Haberler, Heckscher-Ohlin and Stolper-Samuelson - Theory of Tariffs - Regional Trade Arrangements.

3. Balance of Payments:

Disequilibrium in Balance of Payments, Mechanism of Adjustments, Foreign Trade Multiplier, Exchange Rates, Import and Exchange Controls and Multiple Exchange Rates.

4. Global Institutions:

UN agencies; World Bank, IMF and WTO, Multinational Corporations.

5. Money and Banking:

its functions and value-quantity Theory of Money: Cash Transaction Approach and the Cash Balances Approach, Friedman's Restatement of the Quantity Theory of Money - the instruments of monetary control - the neutrality of money - the money multiplier.

6. Statistical and Econometric methods

: averages, dispersions, correlation and regression, time series, index numbers, sampling and survey methods, testing of hypotheses, simple non-parametric tests, drawing of curves based on various linear and non-linear functions; least square methods, other multivariate analysis (only concepts and interpretation of results); ANOVA, factor analysis, principal component analysis, discriminant analysis. Income distributions: Pareto Law of distribution - log-normal distrubution - measurement of income inequality - Lorenz Curve and Gini co-efficient.

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