The global stability of the Schumpeterian dynamical system

Abstract

In this article, we present the studies that develop Schumpeter’s theory of endogenous evolution of economic systems. An approach to modeling the limitation of economic growth due to the limitation of markets, resource bases and other factors is proposed. For this purpose, the concept of economic niche volume is introduced. The global stability of the equilibrium of the dynamical system with the Jacobi matrix having, at the equilibrium, all eigenvalues equal to zero, except one being negative, is proved. The proposed model makes it possible to evaluate and predict the dynamics of the development of firms in the economic sector.