The dynamics of industry structure: The chemical industry in the U.S., Western Europe, and Japan in the 1980s

Abstract

This paper differs from some of the other papers prepared for this conference in some respects. This paper is not explicitly about the German chemical industry. Rather than an in-depth study of a particular firm, or even a handful of firms, we describe here the evolution of industry structure in Western Europe, U.S., and Japan. However, even though the reader will not find specific and detailed information about the German chemical companies, much about the German industry can be understood and appreciated by studying how the chemical industry in the developed world has evolved. Our interest is as much in explaining what we describe as in describing it. We have used a number of historical studies dealing with various aspects of the industry, and we have used them to inform ourselves and our analysis. In this paper, however, we do not do much more than point to some of the historical forces that powered the evolution of industry structure.