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Entry Barriers and the Structure of the Japanese Ammonium Sulphate Industry in the Interwar Period

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  • Anil Khosla

Abstract

Production of ammonium sulphate in Japan until the late1920s was dominated by just two firms. The received view is that foreign competition and limited market size were effective in ensuring a competitive industry structure and preventing new entry. This explanation, however, fails to account for extensive new entry in the midst of developing agricultural crisis and emergence of international overcapacity in the late 1920s. We find that while market size may have played a part, economically viable access to technology was a more important barrier to entry. Calculated risk taking could have mitigated the impact of this constraint.

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  • Anil Khosla, 2004. "Entry Barriers and the Structure of the Japanese Ammonium Sulphate Industry in the Interwar Period," Discussion Paper Series a458, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:a458
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