ABSTRACT
The textile industry included the wool sector, which worked with domestic ra� materials, and the cotton sector, �hich relied on imported ra� materials. Both industries imported other raw materials as well as capital goods. The 1929 crisis deeply affected �ruguayan industry as a �hole. �he te�tile industry �as particularly hit, due to reduced imports of capital goods as a consequence of the fall of exchange rates, and shrinking of the domestic market, the main destination of textile production. The textile industry recovered by the mid-1930s and continued its expansion process, enlarging its relative weight in manufacturing as a whole during the whole period of import substitution. From the early 1950s, the textile branch stagnated.
