Research On The Effect Of The Injection And Spillover Of Learning-By-Doing On Market Strucrure

Learning-by-doing,which is an internal source of technological progress,means learning from the experience of the past,so as to improving the efficiency of current production.Generally,learning-by-doing plays an important role in economic development at the beginning of this century.Learning-by-doing has two kind.One is learning form the experience of the company itself,called the ’injection effect’ of learning-by-doing in this paper,and it can increase trade barriers and increase market concentration.Another is learning from the experience of rival companies,called the ’spillover effect’ of learning-by-doing in this paper,and it can reduce trade barriers and decrease market concentration.This paper measures the learning rate of learning-by-doing from the two aspects of injection effect and spillover effect with OLS and semi-parametric methodology and compares the two learning rates.The results show that the learning rate of the spillover effect of learning-by-doing is relatively high and spillover effect can lower production cost.Corresponding to this,the learning rate of the injection effect of learning-by-doing has no obvious law,and for some of the industries,the spillover effect of learning-by-doing decrease the production efficiency.On this basis,this paper compares the influence on the injection and spillover effect of learning-by-doing.The study uses the CR_n、HHI indexes based on SCP paradigm and PCM index based on Lerner index.It finds that PCM index is more meaningful comparing to CR_n and HHI.Finally,this paper analyses the correlation coefficient between market structure and injection effect or spillover effect.The result is that there is a positive correlation between injection effect of learning-by-doing and market concentration,which means injection effect can increase market concentration.However,the spillover effect of learning-by-doing is almost unrelated to market concentration,which means that the spillover effect cannot decrease market concentration.