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How effective are cluster development policies? Evidence from Uruguay

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  • Aboal, Diego
  • Crespi, Gustavo
  • Perera, Marcelo

Abstract

Cluster development policies have become increasingly popular as a tool for promoting development in developing countries. However, impact evaluations of cluster policies are scarce in the literature. This paper analyzes the impact of a tourism cluster policy in the region of Colonia, Uruguay, applying a synthetic control method. This method of identifying the counterfactual is especially useful in comparative case studies where there are a limited number of control units. The estimations show a positive impact of the cluster program on the inflow of international tourists to Colonia of 30% in the period 2008–2015; however, no significant impact on total expenditure was found.

Suggested Citation

  • Aboal, Diego & Crespi, Gustavo & Perera, Marcelo, 2020. "How effective are cluster development policies? Evidence from Uruguay," World Development Perspectives, Elsevier, vol. 18(C).
    • Handle: RePEc:eee:wodepe:v:18:y:2020:i:c:s2452292919301249
    DOI: 10.1016/j.wdp.2020.100196
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    Cited by:

    1. Anna Horzela & Sławomir Olko, 2021. "The Role of Cluster Policy in Shaping Regional Competitiveness: The Case of Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 444-463.

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    More about this item

    Keywords

    Cluster policy; Impact evaluation; Synthetic control methods; Developing countries;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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