Developing Countries, Market Structure And Technological Progress

In modern market economy, the relations between market structure, the research input of enterprises and the improvement of technology can be interpreted as below: market structure and the research input are the endogenous results caused by the product and research competition of enterprises in certain economic, technological and institutional environment; the improvement of technology is the economical outcome of these competitions. As for developing countries, their particularity lies in these facts, first, import and imitation of technology constitute most researches of enterprise in those countries; second, enterprises in those countries are confronted with the challenge from international enterprises which have an edge in technology; third, the market mechanisms especially the financial system is not sound. The questions are, first, how these facts affect the market structure and the technology improvement? Second, which kind of market structure can help to give an impetus to the technology improvement and the sustainable economic development in developing countries? Third, what is the appropriate policy and institutions needed?This paper constitutes a growth model with endogenous market structure concerning the characteristics of developing countries to discuss about questions mentioned above. The discussion includes these below:(1) Taking quasi-fixed cost and exogenous barrier into account respectively, this paper constitutes two endogenous market structure models under the hypothesis of different consumer preference. These models uncover the relations between the research input, market structure and technology improvement, providing a analytical model for the research focusing on the developing countries.(2) Concerning the different effects of creation and imitation in the overflow of knowledges, and the different choice decided by the scale or efficiency of the research programs, this paper maps a picture of characteristics of developing countries in different stages of technology, offers an explanation to the fact that the appropriate market structure varies because of different stages of technology. And the examples of Japan and Korea provide evidence and further discussions for such conclusions.(3) Analyze the affect of international enterprises from developed countries, also the affect of financial limitation. Meanwhile. Give an analysis of the problems existing in Brazil's opening up using the conclusion of the model. (4) Taking the industrial policies and competition policies into account as parameters, and basing on the tech. difference in the model, this paper discusses the selection and cooperation of industrial policies and competition policies in developing countries.The paper is divided into seven parts, of which the first part is introduction, and the 2nd chapter gives a literature review of researches already existed. The 3rd chapter describes two kinds of models. The 4th chapter discusses the market structure in closed economy and the technology improvement in developing countries. The 5th chapter argues the market structure with the foreign investment and the technology improvement in developing countries. The 6th chapter discusses the selection and cooperation of industrial policies and competition policies in developing countries. The 7th chapter argues the major conclusions and some flaws of this research, as well as some possible directions of further research.