State, cartels and growth: The German Chemical Industry

Nonfiction, Social & Cultural Studies, Social Science
Cover of the book State, cartels and growth: The German Chemical Industry by Lion Hirth, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Lion Hirth ISBN: 9783638829670
Publisher: GRIN Publishing Publication: July 23, 2007
Imprint: GRIN Publishing Language: English
Author: Lion Hirth
ISBN: 9783638829670
Publisher: GRIN Publishing
Publication: July 23, 2007
Imprint: GRIN Publishing
Language: English

Research Paper (postgraduate) from the year 2007 in the subject Business economics - Economic and Social History, grade: 1,0, University of Massachusetts - Amherst (Department of Economics), course: European Economic History, 64 entries in the bibliography, language: English, abstract: This paper provides an analysis of the German chemical industry during the 'Second Industrial Revolution' of the late 19th and the early 20th century. It is modeled after Steven Webb's (1980) article on the iron and steel industry. Here it is argued that the exceptional growth and success of the industry - chemicals were the fastest growing industry in Germany and by 1890 German firms held 85% world market share in dyestuff production - was supported by a high degree of market con-centration and cartelization. This enabled the firms to gain large economies of scale and scope through backward integra-tion and product diversification. Dynamic efficiency gains were mainly achieved by relaxing credit constraints, reducing uncertainty, and allocate investment more efficiently. It is further argued that state action played a crucial role in setting up and stabilizing cartels. This analysis is in line with a Schumpeterian view of welfare-enhancing effects of imperfect competi-tion. While these findings obviously do not question anti-trust policy per se, they do question a mechanical view on market structure that is common in much mainstream economic thinking.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Research Paper (postgraduate) from the year 2007 in the subject Business economics - Economic and Social History, grade: 1,0, University of Massachusetts - Amherst (Department of Economics), course: European Economic History, 64 entries in the bibliography, language: English, abstract: This paper provides an analysis of the German chemical industry during the 'Second Industrial Revolution' of the late 19th and the early 20th century. It is modeled after Steven Webb's (1980) article on the iron and steel industry. Here it is argued that the exceptional growth and success of the industry - chemicals were the fastest growing industry in Germany and by 1890 German firms held 85% world market share in dyestuff production - was supported by a high degree of market con-centration and cartelization. This enabled the firms to gain large economies of scale and scope through backward integra-tion and product diversification. Dynamic efficiency gains were mainly achieved by relaxing credit constraints, reducing uncertainty, and allocate investment more efficiently. It is further argued that state action played a crucial role in setting up and stabilizing cartels. This analysis is in line with a Schumpeterian view of welfare-enhancing effects of imperfect competi-tion. While these findings obviously do not question anti-trust policy per se, they do question a mechanical view on market structure that is common in much mainstream economic thinking.

More books from GRIN Publishing

Cover of the book The women's suffrage movement in New Zealand by Lion Hirth
Cover of the book Die Grenzen der Rechtsvergleichung als Auslegungsmethode (insbesondere im Internet- und Lauterkeitsrecht) by Lion Hirth
Cover of the book Smurfit-Stone Container Corporation by Lion Hirth
Cover of the book What is love - Are love and romance nothing but socially constructed? by Lion Hirth
Cover of the book The discourse particle 'eh' on Guernsey and in Canada by Lion Hirth
Cover of the book Underpricing effect in Poland, Hungary and Czech Republic by Lion Hirth
Cover of the book To what extent has Barcelona become a model of urban transformation for other cities in Europe and even globally and why might this be the case? by Lion Hirth
Cover of the book Trade Surplus in Germany by Lion Hirth
Cover of the book Achieving strategic agility. On the fast track to superior performance in fashion retail by Lion Hirth
Cover of the book American Jews in World War I - German Propaganda Courting the American Jewry by Lion Hirth
Cover of the book Economic Analysis of settlements by Lion Hirth
Cover of the book The relationship between fiction and history by Lion Hirth
Cover of the book Voter's choice in Ukraine's Presidential and Parliamentary Elections since 1994 by Lion Hirth
Cover of the book When disaster strikes... A guideline to business continuity awareness by Lion Hirth
Cover of the book Intercultural relationships and national identities in E.M. Forster´s novel 'A Passage to India' by Lion Hirth
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy