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Subcontracting and vertical integration in the Spanish cotton industry

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  • Joan Ramon Rosés

Abstract

This paper examines changes in the organization of the Spanish cotton industry from 1720 to 1860 in its core region of Catalonia. As the Spanish cotton industry adopted the most modern technology and experienced the transition to the factory system, cotton spinning and weaving mills became increasingly vertically integrated. Asset specificity more than other factors explained this tendency towards vertical integration. The probability for a firm of being vertically integrated was higher among firms located in districts with high concentration ratios and rose with size and the use of modern machinery. Simultaneously, subcontracting predominated in other phases of production and distribution where transaction costs appears to be less important.

Suggested Citation

  • Joan Ramon Rosés, 2005. "Subcontracting and vertical integration in the Spanish cotton industry," Economics Working Papers 816, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:816
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    References listed on IDEAS

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    Cited by:

    1. Alger Ingela & Ma Ching-to Albert & Renault Regis, 2012. "Experience Benefits and Firm Organization," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-35, September.
    2. Domenech, Jordi, 2007. "Working hours in the European periphery: The length of the working day in Spain, 1885-1920," Explorations in Economic History, Elsevier, vol. 44(3), pages 469-486, July.

    More about this item

    Keywords

    transaction cost economics; European industrialization; factory system; organizational change; technological change; international competitiveness;

    JEL classification:

    • N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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