IJPAM: Volume 23, No. 3 (2005)

THE DEVELOPMENT OF PRIVATE ENTERPRISES AND
THE STRUGGLE FOR EXISTENCE OF STATE-OWNED
ENTERPRISES IN A TRANSITION ECONOMY

Katsuhiro Miyamoto$^1$, Chi Han$^2$
$^{1,2}$College of Economics
Osaka Prefecture University
1-1, Gakuen-cho, Sakai, Osaka, 599-8531, JAPAN
$^1$e-mail: miyamoto@eco.osakafu-u.ac.jp
$^1$e-mail: hanchi@eco.osakafu-u.ac.jp


Abstract.This paper uses a theoretical model to analyze the struggle for existence of state-owned enterprises in a transition economy in the short-run and in the long-run. This paper found that:

(1) in the short-run, the optimal quantity of state-owned enterprises depends positively on their production technology, and negatively on their fixed cost and the production technology and the initial quantity of private enterprises;

(2) in the long-run, the development of private enterprises and the struggle for existence of state-owned enterprises depend on the superiorities of production technology and production costs between state-owned and private enterprises.

Received: June 17, 2005

AMS Subject Classification: 91B38

Key Words and Phrases: private enterprises, state-owned enterprises, struggle for existence, transition economy

Source: International Journal of Pure and Applied Mathematics
ISSN: 1311-8080
Year: 2005
Volume: 23
Issue: 3