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Market Organization, Protection, and Vertical Integration: German Cotton Textiles before 1914

John C. Brown

The Journal of Economic History, 1992, vol. 52, issue 2, 339-351

Abstract: This article examines the causes for the relatively high degree of vertical integration in the German cotton textile industry before 1914. Underdeveloped input and output markets exposed German textile firms to price risks not faced by English firms that had access to highly-developed cotton, yarn, and cloth markets. In addition, tariff protection may have prompted integration by its impact on market development. In the weaving sector in particular, the response to this structure of markets was a more diversified product line and integration of both spinning and weaving.

Date: 1992
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Handle: RePEc:cup:jechis:v:52:y:1992:i:02:p:339-351_01