Conference paper

Publication year: 1995

Pages: 395-424

Journal: Environment and Planning. C: Government and Policy

Volume number: 13

Issue number: 4

ISSN: 0263-774X

DOI Link: https://doi.org/10.1068/c130395

Conference: Annual Meeting of the Canadian-Association-of-Geographers

Publisher: Pion

Abstract: 
The present transition from a Fordist to a post-Fordist stage of development is characterized by a structural crisis (the crisis of Fordism). Within the industrial sector, this crisis is associated with economic decline (especially in terms of employment) and substantial reorganization and modernization activities. The way in which the spatial patterns of production will be affected is largely unclear. In the case of the German economy, an increasing number of scholars are worried about the threats which might originate from global restructuring processes of industrial activities. In this context, the economic and spatial structure of the German chemical industry will be analyzed in this paper. It will be argued that the recent economic decline of the chemical industry of western Germany is not indicative of a general deindustrialization trend. The chemical industry is, because of its development path, characterized by a strong tendency to concentrate both economically and regionally. Only a few dominant firms, which form the basis for the spatial development of the industry, have retained, and will retain, technological leadership within the industry (particularly Bayer, Hoechst, and BASF). Their allocation of resources between world regions has remained relatively constant over the past twenty years. It seems unlikely that this geographical distribution will be dramatically changed in the near future through cost-induced relocation activities. Location decisions will, rather, be characterized by a distinct market orientation. This does not, however, imply that chemical production will be shifted away from German locations to other chemical core regions. In contrast to the situation in western Germany, the future existence of chemical production in eastern Germany seems questionable. This is not related to the Fordist crisis but is a consequence of remnants from the previous planned economy and problems associated with German unification.

Harvard Citation style: Bathelt, H. (1995) Global competition, international trade, and regional concentration: The case of the German chemical industry during the 1980s, Environment and Planning C: Government and Policy, 13(4), pp. 395-424. https://doi.org/10.1068/c130395

APA Citation style: Bathelt, H. (1995). Global competition, international trade, and regional concentration: The case of the German chemical industry during the 1980s. Environment and Planning C: Government and Policy. 13(4), 395-424. https://doi.org/10.1068/c130395