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Cement

In: Learning to Industrialize

Author

Listed:
  • Sanjaya Lall

    (Institute of Economics and Statistics
    Green College)

Abstract

The cement industry is generally one of the first to be established in an industrializing country. There are several reasons for this. The product is universally needed. The raw materials can be drawn from a variety of sources, and are generally found in large quantities. The high ratio of bulk to value (i.e. high transport costs) gives its local manufacturer a certain ‘natural’ protection. On the other hand, there are certain scale economies which offset the advantage of setting up large numbers of dispersed small units. The technology is well-established, slow-changing and widely diffused. Major process innovations are embodied in capital equipment. In sum, cement technology is relatively stable, easy to obtain at arm’s length from a number of competing sources and enjoys some inherent competitive advantages in new locations.

Suggested Citation

  • Sanjaya Lall, 1987. "Cement," Palgrave Macmillan Books, in: Learning to Industrialize, chapter 4, pages 52-74, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-18798-0_4
    DOI: 10.1007/978-1-349-18798-0_4
    as

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