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   Course Title    Industrial Organization and Policy
Lecturer    Vesselina Nedeltcheva
Institution    Institute of Economics, Bulgarian Academy of Science
Country    Bulgaria


The experience in transition to a market economy of Central and East European countries (CEECs) points the key role of the rational industrial organization and policy, aimed to an acceleration of the running processes there. Stressing on the great importance of the considered subject, it would be better to be revealed the specific features of industrial organization and policy in different CEECs and to be defined the advantages and disadvantages of their specific transitional ways. So that, it would be quite useful to be derived lessons not only from the market developed countries, but also from those CEECs, in which the marketisation process has succeeded to some extent. Thus, the particular characteristics of the study will be, on the one hand, marketisation of economy and democratisation of society, and on the other hand, internationalisation of the incremental connections and transactions.

Specific features of the insuatrial organization and policy in CEECs throughout the period of transformation to a market have been:

  1. Deep organizational and structural changes in economy and in particular, in industry;
  2. Free versus controlled competition in the transitional economy;
  3. Decentralisation, deconcentration, demonopolisation and liberalisation processes;
  4. Decay of the interbranch production chains and links, etc.

Goals of the outlined syllabus are:

  • To consider evolution of the industrial organization and policy;
  • To reveal the interrelations between structure - conduct - performance;
  • To distinguish the structural priorities of industrial policy motivating the rational methods for that purpose;
  • To argue about technological changes and innovations, consumption and investment, etc. as factors influencing on industrial organization and policy;
  • To derive an effective industrial structure under the market conditions applying equilibrium or optimization models in alternative scenario;
  • To present the peculiarities of input-output method, portfolio approach, etc. giving opportunities to determine rational industrial-branch, respectively firms organization and policy.

Certainly, the industrial organization and policy is an essential part of economic reform targeted to improve the social-economic state, to eliminate the former irrational production structure characterized by poor technological innovations, environmental pollution, high resource-intensity, economic inertia, extensive economic growth, etc.

The structural analysis is based on the use of input-output method, which is quite appropriate for studying the branch-structural interrelations on the base of a large system of indicators, distinguishing the considerable interbranch links and priorities in economy. Input-output method is theoretically completed and well approbated in the practice giving opportunity not only for branch-structural analysis of the considered sector, but also for its analysis from macroeconomic point of view.

In the syllabus is concerned also portfolio approach, which is a specific marketing method for analysis and estimation of the strategies of corporations as the basic units of the organisational structure under market conditions. This method reflects the present and future production-technological and organizational changes in industry from the point of view of both, the phase of production and the phase of realisation. Besides, it allows the wider use of economic market levers based on price signals, as well as the development of self-management of firms and the competition between them, the formation of their corporative strategy, taking into account the requirements of production, innovation and market policy.

References:

  1. Harvey, J. (1998) Modern Economics. McMillan Press Ltd., 1998.
  2. Nedeltcheva V. (1996) Bulgarian Reform in Monetary and Physical Sphere in Transition to a Market Economy: Global and Branch-Structural Analysis. IDE, Tokyo (in English).
  3. Rogers, B. Creating Product Strategies. International Thomson Business Press, 1996.


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