The Impact of Technology Characteristics over Market Structure Change

The Impact of Technology Characteristics over Market Structure Change


Author:Sun Wei,Wu Zhiguo,Li liming Journal:Journal of Northeast Normal University(Philosophy and Social Sciences)  Date:2008(3)

Keywords market structure; market concentration; technology characteristics; marginal rate of technical substitution

Abstract

The paper investigates the relationship of market structure and the technique characteristics of industries on empirical research basis by using the data on manufacturing industry in China. We find higher-concentration industry and low-concentration industry have significant difference with the technique characteristics of industries:average scale has significant positive effect to the market concentration of high-concentration industry, but it has significant negative effect to low-concentration industry. However, the marginal rate of technical substitution of two industries has opposite effect to concentration, where high-concentration industry’s impact to market concentration is not significant. These differences will tell us how to establish industry policy and how to improve industry structure.

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