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Technical change in Developing Countries: A dynamic model of adoption, learning and industry evolution

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  • Raies, asma

Abstract

This paper develops and analyses a dynamic model, which combines both the adoption and the industry evolution theories. We model the decision of adoption, learning entry and exit of firms. These decisions depend on the interaction of technology characteristics ((effectiveness, machinery and information costs…) and other economic indicators (firm’s size, technology capability, competition concentration, returns of scale,…). We use the model’s theoretical results to analyze simultaneously the effects on the structure and the average efficiency of the industry and to develop a framework for understanding the effect of competitive policy reform and public policy action necessary to enhance adoption and average productivity. The model we suggest also analyses effects on industry evolution and social welfare.

Suggested Citation

  • Raies, asma, 2005. "Technical change in Developing Countries: A dynamic model of adoption, learning and industry evolution," MPRA Paper 9529, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:9529
    as

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    File URL: https://mpra.ub.uni-muenchen.de/9529/1/MPRA_paper_9529.pdf
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    References listed on IDEAS

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    1. Vega-Redondo, Fernando, 1996. "Technological change and market structure: An evolutionary approach," International Journal of Industrial Organization, Elsevier, vol. 14(2), pages 203-226.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Adoption; learning; efficiency; entry ; exit; industrial dynamics; evolution; developing countries;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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