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Theory of a Flowchart Approach to Industrial Cluster Policy

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  • Kuchiki, Akifumi
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    Abstract

    A flowchart approach to industrial cluster policy emphasizes the importance ofthe ordering of policy measures. The flow of policy implementation is to establish an industrial zone, to invite an anchor company, and to promote its related companies to invest in the industrial zone. This article delineated "a flowchart approach to industrial cluster policy" by proposing sufficient conditions for forming industrial clusters typical in the manufacturing industry in Asia to enhance regional economic growth. The typical industrial cluster policy was theorized by defining an industrial zone as "quasi-public goods", and it was shown that the policy enhances economic growth under a production function of "increasing returns to scale" of an anchor company. Critical amounts of the production of "scale economies" that are used by the related companies to decide whether or not to invest in clusters were also shown.

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    File URL: http://ir.ide.go.jp/dspace/bitstream/2344/171/3/ARRIDE_Discussion_No.36_kuchiki.pdf
    File Function: First version, 2005
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    Bibliographic Info

    Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 36.

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    Date of creation: Sep 2005
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    Publication status: Published in IDE Discussion Paper. No. 36. 2005.9
    Handle: RePEc:jet:dpaper:dpaper36

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    Related research

    Keywords: Flowchart approach; industrial cluster policy; sufficient conditions; regional economic growth; quasi-public goods; increasing returns to scale; scale economies; Industrial policy; Economics; Industrial estates; Economic development; Economic growth;

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    References

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    1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
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    Cited by:
    1. Arup Mitra, 2011. "Urbanization in India: Evidence on Agglomeration Economies," Working Papers id:4394, eSocialSciences.
    2. Kuchiki, Akifumi, 2007. "A Flowchart Approach to Malaysia's Automobile Industry Cluster Policy," IDE Discussion Papers 120, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Mitra, Arup & Tsujita, Yuko, 2006. "Migration and Wellbeing at the Lower Echelons of the Economy: A Study of Delhi Slums," IDE Discussion Papers 51, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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