British Myopia and the Collapse of Indian Textile Demand

Susan Wolcott

The Journal of Economic History, 1991, vol. 51, issue 2, 367-384

Abstract: Britain's textile industry contracted sharply in the interwar period due to the growth of domestic industries in many of its export markets. Lazonick and Mass argue that, because this growth was inevitable, British entrepreneurs should not have focused on the less developed countries. This article questions whether the interwar growth of the Indian textile industry was inevitable. A quantitative study of Indian import demand and production techniques suggests that the rapid growth of the industry was due to exogenous events—postwar British inflation and change in the Indian political regime—rather than to the natural evolution of Indian productivity.

Date: 1991
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