| Popis: |
It develops a simple theory of Cournot strategic interactions between firms as basic framework and discusses behaviour of firms from dimensions of market structure, technology, scale economies, and value-chains (subcontracting). It demonstrates how large firms derived monopoly power in the product markets and monopsony power in the input markets. This, in turn, made them inward oriented in search of monopoly power in the Pre-reforms era. On the other hand, small and medium scale firms faced highly competitive conditions and high transactions costs in the domestic markets especially in the sub-contracting linkages with large firms. This, in turn, drove relatively efficient small and medium firms to exports where they are price takers facing lesser degree of transaction costs. The chapter also traces how exporting small and medium firms realized efficiency in production processes. |
