Introduction: Immigrant Businesses and their Economic, Politico-Institutional and Social Environment

Abstract

‘The West is best again’, featured in The Economist (9 August 1997), describes the remarkable recovery of California’s economy in the mid 1990s. ‘After its worst recession in half a century, California’s economy is once again outshining the rest of the country.’ Contrary to the previous boom in the 1980s, which was led by the Los Angeles aerospace industry and nurtured by federal dollars for the build-up of the defence industry, today’s economy is much more diversified. A ‘surprisingly wide range of industries’ are doing well, from computers and software, to films, furniture and tourism, as well as clothing and toys (see also The Economist, 31 May 1997). The clothing industry of Los Angeles is now the largest in the country, easily surpassing New York, and it is still growing. The city’s producers of clothing — often Korean immigrants who hire Latino workers — are part of a system of flexible production in which firms respond quickly to subtle changes in fashion. The close connections between these producers and trend-setting Californian designers constitute another asset of the industry as a whole.

The author wishes to express his gratitude to Robert C. Kloosterman for his comments on a previous version of this chapter.