Determinants of mass poverty in the contemporary global economy

Aleksander Jakimowicz 1Agnieszka A. Baklarz 2

1. Polish Academy of Sciences, Institute of Economics (INEPAN), 1 Defilad Sq., Warsaw 00-901, Poland
2. Uniwersytet Warszawski, Wydział Zarządzania (WZ), Szturmowa 1/3, Warszawa 02-678, Poland

Abstract

The concept of mass poverty was defined by J.K. Galbraith in late 1970s and it applies to societies with agriculture as the dominant branch of the economy. This paper examines the importance of this phenomenon and factors affecting it in the contemporary world. There are a growing number of studies supporting the claim that the use of electricity method is a key factor of economic growth which makes it possible to leave the sphere of mass poverty. Such factors as grants and subsidies, as well as national governance quality also matter. Moreover, in order to solve the problem, it is necessary to determine access to capital in such countries and societies, understood as M2 aggregate. In this manner, the problem at hand is reduced to determination of the relationships between the following variables: percentage of rural population, rules of managing electrical energy and M2 aggregate. These findings were used to formulate three study hypotheses. According to the first hypothesis, the effect of the electricity use method on M2 varies from one country to another, with several identifiable patterns. According to the second hypothesis, the process of leaving the mass poverty sphere follows either the Bose-Einstein distribution or the Boltzmann distribution. The third hypothesis indicates that effects of efforts aimed at eliminating mass poverty in certain conditions are not permanent. Verification of these three hypotheses indicates the adequacy of the theory of mass poverty in the contemporary world.

 

Related papers
  1. Insider trading and acceleration reflected in the price of confidential information stock indexes
  2. Logistic map in economics
  3. Application of the four colour theorem to identify regional poles and main lines of economic growth
  4. The mechanism of transformation of global business cycles into dynamics of regional real estate markets
  5. Prosumption in the public administration sector
  6. Econophysics as a new school of economic thought: twenty years of research
  7. Basic sources of economic complexity
  8. Stability of the Cournot-Nash equilibrium in standard oligopoly models
  9. Vortex stabilization of market equilibrium in theory and in practice of economics
  10. Deterministic chaos and catastrophes in business cycle theory

Presentation: Poster at Econophysics Colloquium 2017, Symposium A, by Aleksander Jakimowicz
See On-line Journal of Econophysics Colloquium 2017

Submitted: 2017-03-13 13:24
Revised:   2017-03-13 16:57