Page 115 - Azerbaijan State University of Economics

Nazim U. Hajiyev: Assessment stages of cyclical development of monopoly and
competition in terms of the reconstruction of Azerbaijan economy

“downward”. And this in its turn doesn’t ban “upward” monopolisation that is

inherent for command economy system.

In western countries vertical integration system, combination system, and

especially diversification process of production destroys monopoly structures in

many fields and contributes competitive relations which stimulate scientific-

technological development. The anti-monopoly policy of government also is

important in formulating and development of competitive relations. At the same

time stable monopoly structure of Soviet Union was a key factor of technological

drawback from its developed competitors.

Investigating impact of experience repeating western technology on soviet

electronic industry M.Castels gives a questions: why repeating American

electronic technology boosted Japanese economical development while it had quite

negative effect on soviet economy. The answer is very simple: Japanese companies

operated in free competition and Soviet companies operated in monopoly

condition. the complex non-development reasons of the soviet military industry

also is explained in the same way. Relative opennes for other American companies

and Japanese electronic instrument and device producers prevent American

electronic defence system sector from early decaying process. But, soviet

enterprises operating in closed economic conditions and not stimulated for export

operation and only appropriate to not very ultramodern specifications of Ministry

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