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Market Division and Industrial Structure: Strategies for the Competitive Edge of the German Steel Industry in the Ninetheenth Century

Author

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  • Young Goo Park

    (Pusan University of Foreign Studies)

Abstract

Prohibitive tariff walls, initiativeness in introducing the Thomas process, or export-market first strategy was obviously important for the competitive edge of the German steel industry in nineteenth-century international markets, as have been usually pointed out until now. But the decisive factor for the competitive edge of the German steel industry was, rather, the German strategy of demand expansion through market division in two aspects, in other words the formation of the Germany-type heavy industry structure which made the adoption of the Thomas process and the mass production of steel, and the cost reduction to the competitive level possible. This paper shows domestic demand market and market division are important for a late-comer to be able to secure an industrial competitive edge in the international market.

Suggested Citation

  • Young Goo Park, 1999. "Market Division and Industrial Structure: Strategies for the Competitive Edge of the German Steel Industry in the Ninetheenth Century," Korean Economic Review, Korean Economic Association, vol. 15, pages 235-252.
    • Handle: RePEc:kea:keappr:ker-199912-15-2-02
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    More about this item

    Keywords

    Market Division; Industrial Structure; German Steel Industry;
    All these keywords.

    JEL classification:

    • N6 - Economic History - - Manufacturing and Construction
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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