International Technology Diffusion And Economic Growth: Theoretical And Empirical Research On The Role Of Market Structure

As a major source of the host country's technological progress, the international technology diffusion's growth effect is restrained with many factors, among which the market structure is significant. Different monopolistic competition degrees will affect the diffusion source formation, diffusion incentives and strategy, and consequently the growth. So, the qualitative analysis of the market structure's influence on the growth resulted from international technology diffusion and the empirical analysis on panel data of Chinese industry, based on the systematically theoretical research, will be a useful tool to identify the influence mechanism and specific extent of growth during international technology diffusion, which is affected by monopoly and competition factors. Moreover, such analyses can serve as a theory guide for China to make suitable policies to reinforce the growth effect of international technology diffusion and to realize the technology leapfrogging and economy great-leap-forward development.The conclusion shows that if there is perfect competition, the growth rate of all countries will converge to the same one under the small country condition or to the big country's growth rate under the big country condition. If monopoly is taken into account, the degree of monopolistic competition will affect the long-run economic growth rate via the international technological diffusion. Hence the market structure optimization favoring international technological diffusion exists in the relatively balanced zone between competition factors and monopoly factors, the factors under such a point promoting the spillover, or will obstruct the process. The strategic analysis on oligopoly market illustrates that the differences in the two participants' strategies reduce the growth effect of international technology diffusion, and the way to solve this problem is changing entrance order.