A broad summary of the theoretical literature on economic growth shows this theory has transcended the neoclassical paradigm and that market rationality does not govern the human development process. Instead human development is the appropriate standard for rationality. Using Gidwitz et al’s...

This article begins by constructing a model of stratified and divergent economic growth integrating economic geography, human development and endogenous technological change. Even in the presence of perfect capital, goods, and labor markets, economic geography and local governance can lead to...