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Nonlinear Dynamics: Materials, Theory and Experiments pp 347–357Cite as

Nonequilibrium Trade-Investment Model for the Ranked Distribution of Gross Domestic Products Per-capita

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Abstract

The world distribution of Gross Domestic Products per capita (GDPpc) has been the subject of considerable debate for a long time. Basic properties such as the existence of convergence or divergence in time, and the broad features of its distribution, have not been agreed upon. In this work it is argued that the world distribution of GDPpc is well described by a multiplicative Trade-Investment model. We first derive analytically the typical value g(r, t) of the ranked wealths for a system evolving under Trade (modeled as YS exchange) and Investment (modeled as RMN). The resulting analytical expressions are fitted to data for the GDPpc of up to 200 countries, in the period 1960–2013. Our results support the idea that biased international commerce, and not random noise, is the main cause for the observed divergence of GDPpc values in time.

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Acknowledgments

The authors thank CGSTIC of CINVESTAV for computer time on cluster Xiuhcoatl. RBG acknowledges CONACYT for financial support.

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Authors and Affiliations

  1. Departamento de Física Aplicada, CINVESTAV del IPN, 97310, Mérida, Yucatán, México

    R. Bustos-Guajardo & Cristian F. Moukarzel

Authors
  1. R. Bustos-Guajardo
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  2. Cristian F. Moukarzel
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Corresponding author

Correspondence to Cristian F. Moukarzel .

Editor information

Editors and Affiliations

  1. Physique des systèmes dynamiques, Université Libre de Bruxelles, Brussels, Belgium

    Mustapha Tlidi

  2. Universidad de Chile, Santiago, Chile

    Marcel. G. Clerc

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Bustos-Guajardo, R., Moukarzel, C.F. (2016). Nonequilibrium Trade-Investment Model for the Ranked Distribution of Gross Domestic Products Per-capita. In: Tlidi, M., Clerc, M. (eds) Nonlinear Dynamics: Materials, Theory and Experiments. Springer Proceedings in Physics, vol 173. Springer, Cham. https://doi.org/10.1007/978-3-319-24871-4_26

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