It is a widely held belief that foreign direct investment (FDI) has a positive effect on economic growth. We test this hypothesis by performing convergence regressions derived from a model of endogenous technological change. We estimate the rate of growth in per-capita income, relative to the...

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...