Analysis of Venezuela’s oil-oriented economy: from the perspective of entropy

Abstract To investigate the efficiency and stability of Venezuela’s oil-oriented economy, this paper applied entropy to the analysis. Based on this method, Venezuela’s oil-centered industry, inefficient regulatory system, and insensitive response to external changes are recognized as an increase in...

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Auteurs principaux: Xian-Zhong Mu, Guang-Wen Hu
Format: article
Langue:EN
Publié: KeAi Communications Co., Ltd. 2018
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Accès en ligne:https://doaj.org/article/a4a842d2950148eb98f06e73b0a017f4
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Résumé:Abstract To investigate the efficiency and stability of Venezuela’s oil-oriented economy, this paper applied entropy to the analysis. Based on this method, Venezuela’s oil-centered industry, inefficient regulatory system, and insensitive response to external changes are recognized as an increase in the country’s entropy. According to these facts, a dissipative structure model is constructed to analyze the efficiency and stability of the Venezuela’s economic system. The results show that financial assistants (fund flow), policy reform (policy flow), and advanced technology (technology flow) can perform as negative entropy inflows (NEIFs). These NEIFs will promote a series of influence and feedback reactions, which will contribute to recovering Venezuela’s system efficiency and stability.