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Productivity growth and job creation in the development process of industrial clusters

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  • Sonobe, Tetsushi
  • Higuchi, Yuki
  • Otsuka, Keijiro

Abstract

Poor management has long been suspected as a major constraint on job creation in the manufacturing sector in low-income countries. In this sector, countless micro and small enterprises in industrial clusters account for a large share of employment. This paper examines the roles of industrial clusters, managerial capacities, and entrepreneurship in improving productivity and creating jobs, by reviewing the literature and case studies, including recent experiments. It finds that managerial capacities are a major determinant of firms'employment sizes and productivity growth, and that it is high innovative capacities, accompanied by high managerial capacities, that boost cluster-based industrial development.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6280.

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Date of creation: 01 Nov 2012
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Handle: RePEc:wbk:wbrwps:6280

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Keywords: Labor Policies; Labor Markets; E-Business; Microfinance; Economic Theory&Research;

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  1. Nick Bloom & John Van Reenen, 2006. "Measuring and explaining management practices across firms and countries," LSE Research Online Documents on Economics 733, London School of Economics and Political Science, LSE Library.
  2. Babur Wasim Arif & Tetsushi Sonobe, 2011. "Virtual Incubation in Industrial Clusters: A Case Study in Pakistan," GRIPS Discussion Papers 11-08, National Graduate Institute for Policy Studies.
  3. Nick Bloom & John Van Reenen, 2010. "Why do management practices differ across firms and countries?," LSE Research Online Documents on Economics 47491, London School of Economics and Political Science, LSE Library.
  4. de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
  5. Vu Hoang Nam & Tetsushi Sonobe & Keijiro Otsuka, 2010. "An Inquiry into the Development Process of Village Industries: The Case of a Knitwear Cluster in Northern Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 312-330.
  6. Kjetil Bjorvatn & Bertil Tungodden, 2009. "Teaching business in Tanzania: Evaluating participation and performance," CMI Working Papers 9, CMI (Chr. Michelsen Institute), Bergen, Norway.
  7. Dean Karlan & Martin Valdivia, 2007. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," Working Papers 107, Center for Global Development.
  8. Mano, Yukichi & Iddrisu,, Alhassan & Yoshino, Yutaka & Sonobe, Tetsushi, 2011. "How can micro and small enterprises in Sub-Saharan Africa become more productive? the impacts of experimental basic managerial training," Policy Research Working Paper Series 5755, The World Bank.
  9. Fleisher, Belton & Hu, Dinghuan & McGuire, William & Zhang, Xiaobo, 2010. "The evolution of an industrial cluster in China," China Economic Review, Elsevier, vol. 21(3), pages 456-469, September.
  10. Nicholas Bloom & Christos Genakos & Raffaella Sadun & John Van Reenen, 2011. "Management Practices Across Firms and Countries," CEP Discussion Papers dp1109, Centre for Economic Performance, LSE.
  11. Aya Suzuki & Vu Huang Nam & Tetsushi Sonobe, 2013. "Willingness to Pay for Managerial Training: A Case from the Knitwear Industry in Northern Vietnam," GRIPS Discussion Papers 13-08, National Graduate Institute for Policy Studies.
  12. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, vol. 36(9), pages 1531-1546, September.
  13. Erica Field & Seema Jayachandran & Rohini Pande, 2010. "Do Traditional Institutions Constrain Female Entrepreneurship? A Field Experiment on Business Training in India," American Economic Review, American Economic Association, vol. 100(2), pages 125-29, May.
  14. Chad Syverson, 2010. "What Determines Productivity?," NBER Working Papers 15712, National Bureau of Economic Research, Inc.
  15. Sonobe, Tetsushi & Hu, Dinghuan & Otsuka, Keijiro, 2004. "From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 542-563, September.
  16. Yujiro Hayami, 2009. "Social Capital, Human Capital and the Community Mechanism: Toward a Conceptual Framework for Economists," Journal of Development Studies, Taylor & Francis Journals, vol. 45(1), pages 96-123.
  17. Tetsushi Sonobe & John Akoten & Keijiro Otsuka, 2011. "The growth process of informal enterprises in Sub-Saharan Africa: a case study of a metalworking cluster in Nairobi," Small Business Economics, Springer, vol. 36(3), pages 323-335, April.
  18. Khondoker Abdul Mottaleb & Tetsushi Sonobe, 2011. "An Inquiry into the Rapid Growth of the Garment Industry in Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 60(1), pages 67 - 89.
  19. William J. Baumol & Melissa A. Schilling & Edward N. Wolff, 2009. "The Superstar Inventors and Entrepreneurs: How Were They Educated?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 711-728, 09.
  20. T. Sonobe & D. Hu & K. Otsuka, 2002. "Process of Cluster Formation in China: A Case Study of a Garment Town," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 118-139.
  21. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2010. "What Capital Is Missing in Developing Countries?," American Economic Review, American Economic Association, vol. 100(2), pages 629-33, May.
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