ABSTRACT

Economic development is a complex and puzzling phenomenon. There is no telling precisely when, where and how it will happen – why some countries and regions become rich while others remain desperately poor. The classical notion that free factor flows would lead to convergence in development has long since been confounded by the glaring disparities in levels of income that now prevail across the globe. Economists and economic historians have shed many words on this topic but still it remains something of a mystery.