De‐industrialization and re‐industrialization in the Middle East: reflections on the cotton industry in Egypt and in the Izmir region

摘要: This article presents an investigation of the process decline and rebirth textile manufacturing in two Middle Eastern regions, Egypt Izmir region, during first wave globalization (1850–1914). Through application ‘Dutch disease’ model, it explores linkages between terms trade industrialization. These are further related to evolution price transmission domestic global raw cotton markets. Findings indicate that different levels market integration have contributed diverging trajectories industrial development regions: while de-industrialization was not reversed, region weaker international facilitated creation a nascent industry. However, patterns relative movements only one causes can explain differences regions.