Determinants of mass poverty in the contemporary global economy
|Aleksander Jakimowicz 1, Agnieszka A. Baklarz 2|
1. Polish Academy of Sciences, Institute of Economics (INEPAN), 1 Defilad Sq., Warsaw 00-901, Poland
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.
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