Hand looms, power looms, and changing production organizations: the case of the Kiryu weaving district in the early 20th century Japan
This study finds that the development process of the Kiryu silk weaving district in Japan from 1895 to 1930 can be divided at least into the two phases, i.e., Smithian growth based on the inter-firm division of labor using hand looms and Schumpeterian development based on factory system using power looms. Weaving manufacturers-cum-contractors led Smithian growth by organizing sub-contracts with out-weavers in rural villages and grew faster than factory production systems. Newly emerged joint stock firms played a role of genuine entrepreneurs by realizing significant scale economies. During this new phase, weaving manufacturers-cum-contractors survived and also introduced new production system.
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"Agglomeration or Selection? The Case of the Japanese Silk-Reeling Clusters, 1908-1915,"
CEI Working Paper Series
2010-11, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
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- Arimoto, Yutaka & Nakajima, Kentaro & Okazaki, Tetsuji, 2011. "Agglomeration or Selection? The Case of the Japanese Silk-Reeling Clusters, 1908-1915," PRIMCED Discussion Paper Series 7, Institute of Economic Research, Hitotsubashi University.
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