Contemporary economics

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Ryszard Bartkowiak


Keywords : paradigm, economics, economic theory, classical economics, neoclassical economics, Keynesian economics, institutional economics, evolutionary economic theory, economic history, Malthusian principle of population, new economic geography, development economics
Abstract
Due to the diversity of the world economy, there is no economic theory that could be treated as an economic paradigm. The classical-neoclassical and Keynesian economics still dominate in description of affluent societies with market economy systems. They make use of the so-called theoretical approach which to a large extent neglects historical, institutional and geographical factors of growth. However, the importance of other approaches, i.e. geographical, historical and institutional, is steadily increasing. They all form a combined geographical-historical approach which is the only one appropriate to explain the persistence of poverty, being responsible for social deprivation and social limits to economic growth, as well as the symptoms of natural limits to growth on a global scale. They prevail in the new economic geography, new economic history and new institutional economics. The combination of institutional economics and natural sciences has resulted in the evolutionary economic theory, in which the Malthusian principle of population and Darwin’s theory play the crucial role. The re-emergence of the Malthusian principle of population can be ascribed to the danger of appearance of natural limits to growth. The principle makes the departure point in the geographical-historical approach, which is widely applied in development economics, whose field of research is less-developed and non-market economy. On the other hand, the population principle results in a dual pattern of world’s population development, which corresponds with dualism of the world economy. It is evident that the world economy will be more and more divided into the affluent centre and poor peripheries. Whenever is the world-wide standard of living equalised, it will be likely in the process of global impoverishment through lack of some natural resources used in human economic activities.

Article Details

How to Cite
Bartkowiak, R. (2010). Contemporary economics. Annals of Agricultural Economics and Rural Development, 97(2), 16–29. https://doi.org/10.22630/RNR.2010.97.2.13
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