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Imperfect Competition and Anglo-German Trade Rivalry: Markets for Cotton Textiles before 1914

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  • Brown, John C.

Abstract

This article reappraises export performance on international markets before World War I by examinnig the case of cotton textiles. The German industry expanded its market share from the 1850s to 1914 despite remaining a high-cost industry relative to Great Britain. Evidence from contemporary accounts and analysis of trade data from 1913 suggests that German success arose in part from the importance of monopolistic competition in export markets for finished cloth. Germany’s relative wealth, geographic position, and perhaps the intensive marketing efforts of its industry may have enabled it to counter the cost advantage of its British rival.Their heads are still gay with crimson kerchiefs, but those kerchiefs do not come from Manchester.—E. E. Williams

Suggested Citation

  • Brown, John C., 1995. "Imperfect Competition and Anglo-German Trade Rivalry: Markets for Cotton Textiles before 1914," The Journal of Economic History, Cambridge University Press, vol. 55(3), pages 494-527, September.
    • Handle: RePEc:cup:jechis:v:55:y:1995:i:03:p:494-527_04
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    Cited by:

    1. Becuwe, Stéphane & Blancheton, Bertrand & Meissner, Christopher M., 2021. "The French (Trade) Revolution of 1860: Intra-Industry Trade and Smooth Adjustment," The Journal of Economic History, Cambridge University Press, vol. 81(3), pages 688-722, September.
    2. Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2011. "Trade booms, trade busts, and trade costs," Journal of International Economics, Elsevier, vol. 83(2), pages 185-201, March.
    3. repec:bla:germec:v:9:y:2008:i::p:65-86 is not listed on IDEAS
    4. Theo Balderston, 2010. "The economics of abundance: coal and cotton in Lancashire and the world," Economic History Review, Economic History Society, vol. 63(3), pages 569-590, August.
    5. Michael Huberman & Christopher M. Meissner, 2009. "Riding the Wave of Trade: Explaining the Rise of Labor Regulation in the Golden Age of Globalization," NBER Working Papers 15374, National Bureau of Economic Research, Inc.
    6. Kirsten Labuske & Jochen Streb, 2008. "Technological Creativity and Cheap Labour? Explaining the Growing International Competitiveness of German Mechanical Engineering before World War I," German Economic Review, Verein für Socialpolitik, vol. 9(1), pages 65-86, February.
    7. Streb, Jochen & Wallusch, Jacek & Yin, Shuxi, 2007. "Knowledge spill-over from new to old industries: The case of German synthetic dyes and textiles (1878-1913)," Explorations in Economic History, Elsevier, vol. 44(2), pages 203-223, April.
    8. Wolf-Fabiann Hungerland & Nikolaus Wolf, 2022. "The panopticon of Germany’s foreign trade, 1880–1913: New facts on the first globalization [Economics and the modern economic historian]," European Review of Economic History, European Historical Economics Society, vol. 26(4), pages 479-507.

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