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Schumpeterian Evolutionary Dynamics and the Collapse of Soviet-Bloc Socialism

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  • J. Barkley Rosser
  • Marina Vchershnaya Rosser

Abstract

The problem of the collapse of socialism within the former Soviet bloc is examined from the perspective of a Schumpeterian view of technological change and discontinuous evolutionary dynamics. The Schumpeterian mechanism of 'creative destruction' was frustrated in the traditional socialist system with revolutionary technological changes tending not to be adopted. In largely capitalist economies Schumpeter saw these as being adopted in clusters at critical points in long waves, but planned socialism substantially reduces such cycles for output, if not quite as much for investment. The crisis of Soviet-style socialism came with the attempt to leap to the higher 'technique cluster' of information technologies and broke down in the effort to do so as political changes reflected conflict between the production requirements of that technology with the central control of the planned socialist system.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Review of Political Economy.

Volume (Year): 9 (1997)
Issue (Month): 2 ()
Pages: 211-223

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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:211-223

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  1. Bleaney, Michael, 1991. "Investment Cycles in Socialist Economies: A Reconsideration," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 515-27, July.
  2. Barkley Rosser, J. Jr., 1983. "Reswitching as a cusp catastrophe," Journal of Economic Theory, Elsevier, vol. 31(1), pages 182-193, October.
  3. Henkin, Gennadi M. & Polterovich, Victor M., 1991. "Schumpeterian dynamics as a non-linear wave theory," Journal of Mathematical Economics, Elsevier, vol. 20(6), pages 551-590.
  4. Rosser, J. Jr., 1992. "The dialogue between the economic and the ecologic theories of evolution," Journal of Economic Behavior & Organization, Elsevier, vol. 17(2), pages 195-215, March.
  5. Goodwin, Richard M., 1986. "The economy as an evolutionary pulsator," Journal of Economic Behavior & Organization, Elsevier, vol. 7(4), pages 341-349, December.
  6. Simonovits, Andras, 1991. "Investments, starts, and cycles in socialist economies: A mathematical model," Journal of Comparative Economics, Elsevier, vol. 15(3), pages 460-475, September.
  7. Gur Ofer, 1990. "Macroeconomic Issues of Soviet Reforms," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 297-342 National Bureau of Economic Research, Inc.
  8. Bajt, Alexander, 1971. "Investment Cycles in European Socialist Economies: A Review Article," Journal of Economic Literature, American Economic Association, vol. 9(1), pages 53-63, March.
  9. Simonovits, A, 1991. " Investment Limit Cycles in a Socialist Economy," Economic Change and Restructuring, Springer, vol. 24(1), pages 27-46.
  10. Berkowitz, Daniel, 1992. " Sequence of Techniques," Economic Change and Restructuring, Springer, vol. 25(3), pages 191-217.
  11. Sterman, John D., 1985. "A behavioral model of the economic long wave," Journal of Economic Behavior & Organization, Elsevier, vol. 6(1), pages 17-53, March.
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