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Entropy and Economic Growth Relationship

Önder Coskun

posted on 28 June 2010

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According to the theory of cyclical fluctuations, the developing countries are in crisis and growth oscillations and this oscillations occurring on the growth path. Can we talk about for the economies a disordering process that is obtained from entropy? To answer this question it will be tried to present some hypotheses to interrogate the presence of entropy in economics. First of it: "In a situation without an outside intervention, the growth process in developing countries will not be continuously and regular, contrarily this process occurs in permanently increasing growth-crisis oscillations." So this means, "Each economic crisis rate is deeper than the crisis before the previous economic growth; same way each growth rate after economic crisis is greater than previous post-crisis growth rate" The appropriateness of GNP values of some developing countries will be examined for this assumption with the some formulas those are adapted from the law of entropy. For this review some parameters, and according to these parameters some mathematical expressions will be presented. It will be researched, if the irregular structure of growth-crisis periods are continuously, calculable and have ever-increasing rates according the concept of entropy. For some developing countries some data like oscillation frequency and amplitude of growth-crisis periods will be tried to obtain and the results will be reviewed. These results show why some economies are more or less crisis-sensitive than the others, how can this be calculated by entropy formulas and are overlapping these results with the real economical indicators