DUALITY OF FLUCTUATIONS IN ECONOMIC SYSTEMS DEVELOPMENT
Abstract
The paper deals with the analysis of fluctuations duality in open economic systems development. Fluctuations are often seen as deviations from the average states of the system. Fluctuations do perform a dual task in economic systems development. Firstly, fluctuations may generate a neutral background, which actuates the protective mechanisms of economic system development. Small fluctuations are leaving the system at the same level of stability due to negative feedback mechanisms. Secondly, fluctuations do create preconditions for the transition of economic system to a new level of stability. The last is promoted by incorporation of positive feedback mechanisms. It is stated in a paper that increasing returns are related to mechanisms of positive feedback – within different markets, firms, and industries. Specific economic situations are analyzed to prove the duality of fluctuations in development of real economic systems.
References
Berg, D. B. and Popkov V. V. (2007), Sustainable economic development in the context of globalization and the knowledge economy: the conceptual foundations of the management theory and practice, Moscow, Ekonomika. (In Russian) (Берг, Д. Б. Конкуренция как механизм отбора инновационных проектов и предприятий // Устойчивое экономическое развитие в условиях глобализации и экономики знаний: концептуальные основы теории и практики управления / Д. Б. Берг, В. В. Попков. – М. : Экономика, 2007. – С. 109–156.)
Halchinskiy, A. (2006), Global Transformations: conceptual alternatives. Methodological aspects, Kyiv, Lybid. (In Ukrainian) (Гальчинський, А. Глобальні трансформації: концептуальні альтернативи. Методологічні аспекти / А. Гальчинський. – К. : Либідь, 2006. – 312 с.)
Yevstihneeva, L. P. and Yevstihneev R. N. (2010), Economics as a synergetic system, Moscow, LENAND. (In Russian) (Евстигнеева, Л. П. Экономика как синергетическая система // Л. П. Евстигнеева, Р. Н. Евстигнеев – М. : ЛЕНАНД, 2010. – 272 с.)
Kasperovich, H. I. (2005), Synergetic management concept: a course of lectures, Minsk, Akademia upravlenia pri Presidente Respubliki Belarus. (In Russian) (Касперович, Г. И. Синергетические концепции управления : курс лекций / Г. И. Касперович. – Мн. : Академия управления при Президенте Республики Беларусь, 2005. – 258 с.)
Korotaev, A. V. (2006), History and Mathematics: problems of periodization of historical macroprocesses, Moscow, Komkniha. (In Russian) (Коротаев, А. В. Периодизация истории Мир-Системы и математические макромодели социально-исторических процессов / А. В. Коротаев // История и Математика: проблемы периодизации исторических макропроцессов. – М. : КомКнига, 2006. – С. 129–132.)
Melnyk L. H. (2012), The theory of self-organization of economic systems, Sumy, Universiteskaia kniha. (In Russian) (Мельник, Л. Г. Теория самоорганизации экономических систем : монография / Л. Г. Мельник. – Сумы : Университетская книга, 2012. – 439 с.)
Moiseev, N. N. (1990), The man and the noosphere, Moscow, Molodaia hvardia. (In Russian) (Моисеев, Н. Н. Человек и ноосфера / Н. Н. Моисеев. – М. : Молодая гвардия, 1990. – 351 с.)
Brian, W. Arthur (1996), “Arthur Increasing Returns and the New World of Business,” Harvard Business Review, July–August, 101–109.
Feedback by Piotr Golec (2004), “Economics Web Institute,” http://www.economicswebinstitute.org/glossary/feedback.htm.
