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 How well does the UN manage global peace and security by Lion Hirth
Cover of the book The Battle Between Stakeholders and Stockholders by Lion Hirth
Cover of the book Child Sexual Abuse and Mental Disorder by Lion Hirth
Cover of the book Theories on the origin of the english progressive by Lion Hirth
Cover of the book Andrea Barret 'Ship Fever'. An Analysis of the Development of the Main Characters by Lion Hirth
Cover of the book Los Angeles in Film - Lakeview Terrace by Lion Hirth
Cover of the book Bloom and Feminism by Lion Hirth
Cover of the book The educational system of Iceland by Lion Hirth
Cover of the book Voice-over narration in Desperate Housewives by Lion Hirth
Cover of the book Measurement and Definitions of Development by Lion Hirth
Cover of the book The high failure rates of cross-border mergers due to the focus of companies on hard factors by Lion Hirth
Cover of the book The impacts of plastic pollution in the North Pacific Ocean and possible solutions by Lion Hirth
Cover of the book Gravierende soziale Unterschiede in der Prävalenz degenerativer Gelenkerkrankungen by Lion Hirth
Cover of the book Always hard for me to get it right - The Different Versions of Peter Shaffer's Amadeus by Lion Hirth
Cover of the book Induced errors - sources and pedagogical deductions 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