IDEAS home Printed from https://ideas.repec.org/a/ags/ifaamr/316246.html
   My bibliography  Save this article

Local industrial policies and development of agricultural clusters: a case study based on a tea cluster in China

Author

Listed:
  • Zhao, Lyuhang
  • Ruan, Jianqing
  • Shi, Xinjie

Abstract

The purpose of this study is to discuss the effectiveness of local industrial policies and show that effective industrial policies contribute to both the evolution and development of the cluster in the Chinese context, based on comparative advantages and market failures. We adopted a single case study method and conducted interviews with 30 stakeholders in the tea clusters; a documentary investigation was also used as a supplement. This case study finds that local industrial policies have played an important role when market failures occur in the development of agricultural clusters. The local government implemented a series of industrial policies to promote the progress of the tea industry at various stages of development. The case study further demonstrates what can be considered as an effective industrial policy in the dynamic process of agricultural development. This case also provides empirical evidence for local governments to remain sensitive to challenges and to develop timely industrial policies when an industrial cluster is faced with either opportunities or crises. Therefore, it has implications for local governments that need to improve agriculture in undeveloped regions.

Suggested Citation

  • Zhao, Lyuhang & Ruan, Jianqing & Shi, Xinjie, 2021. "Local industrial policies and development of agricultural clusters: a case study based on a tea cluster in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(2), February.
    • Handle: RePEc:ags:ifaamr:316246
    DOI: 10.22004/ag.econ.316246
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/316246/files/ifamr2021.0006.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.316246?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xiaowei Chen & Tianyu Zhang & Fu Jia, 2020. "Industry convergence as a strategy for achieving sustainable development of agricultural complex: The case of Sandun‐Lanli in China," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2679-2694, September.
    2. Tatsuo Hatta, 2017. "Competition policy vs. industrial policy as a growth strategy," China Economic Journal, Taylor & Francis Journals, vol. 10(2), pages 162-174, May.
    3. Philippe Aghion & Jing Cai & Mathias Dewatripont & Luosha Du & Ann Harrison & Patrick Legros, 2022. "Industrial Policy and Competition," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 15, pages 349-380, World Scientific Publishing Co. Pte. Ltd..
    4. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, March.
    5. Unknown, 2008. "2008 Editorial Committee," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2008, pages 1-1.
    6. Tetsushi Sonobe & Keijiro Otsuka, 2014. "Cluster-Based Industrial Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-38511-6, December.
    7. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    8. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2010. "What Capital Is Missing in Developing Countries?," American Economic Review, American Economic Association, vol. 100(2), pages 629-633, May.
    9. Zhang, Xiaobo & Hu, Dinghuan, 2014. "Overcoming Successive Bottlenecks: The Evolution of a Potato Cluster in China," World Development, Elsevier, vol. 63(C), pages 102-112.
    10. Baldwin, Robert E, 1969. "The Case against Infant-Industry Tariff Protection," Journal of Political Economy, University of Chicago Press, vol. 77(3), pages 295-305, May/June.
    11. Ju, Jiandong & Lin, Justin Yifu & Wang, Yong, 2015. "Endowment structures, industrial dynamics, and economic growth," Journal of Monetary Economics, Elsevier, vol. 76(C), pages 244-263.
    12. Joseph E. Stiglitz & Shahid Yusuf, 2001. "Rethinking the East Asian Miracle," World Bank Publications - Books, The World Bank Group, number 13969, August.
    13. Ken Warwick, 2013. "Beyond Industrial Policy: Emerging Issues and New Trends," OECD Science, Technology and Industry Policy Papers 2, OECD Publishing.
    14. Wang, Yong, 2015. "A model of sequential reforms and economic convergence: The case of China," China Economic Review, Elsevier, vol. 32(C), pages 1-26.
    15. Guo, Hongdong & Jolly, Robert W., 2008. "Contractual arrangements and enforcement in transition agriculture: Theory and evidence from China," Food Policy, Elsevier, vol. 33(6), pages 570-575, December.
    16. United Nations Industrial Development Organization,, 1996. "International Yearbook of Industrial Statistics 1996," Books, Edward Elgar Publishing, number 1141.
    17. Joseph E. Stiglitz, 2015. "Industrial policy, learning, and development," WIDER Working Paper Series wp-2015-149, World Institute for Development Economic Research (UNU-WIDER).
    18. Jongseok Lee & Iain Clacher & Kevin Keasey, 2012. "Industrial policy as an engine of economic growth: A framework of analysis and evidence from South Korea (1960--96)," Business History, Taylor & Francis Journals, vol. 54(5), pages 713-740, December.
    19. Bruce Greenwald & Joseph E. Stiglitz, 2013. "Industrial Policies, the Creation of a Learning Society, and Economic Development," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, chapter 1, pages 43-71, Palgrave Macmillan.
    20. Galli, Francesca & Venturi, Francesca & Bartolini, Fabio & Gava, Oriana & Zinnai, Angela & Chiara, Sanmartin & Andrich, Gianpaolo & Brunori, Gianluca, 2017. "Shaping food systems towards improved nutrition: a case study on Tuscan Bread Protected Designation of Origin," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(4), April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erling Li & Yanan Xu & Shixin Ren & Jay Lee, 2022. "Spin-Offs, Innovation Spillover and the Formation of Agricultural Clusters: The Case of the Vegetable Cluster in Shouguang City, Shandong Province, China," Land, MDPI, vol. 11(2), pages 1-18, February.
    2. Yigang Jiang & Guanxin Yao & Jing Xu & Yue Tian, 2021. "Study in Driving Strategy and Analysis of Sustainable and Symbiosis Development Relationship between Agricultural Industrial Clusters and Agricultural Logistics Industry," Sustainability, MDPI, vol. 13(24), pages 1-21, December.
    3. Jie Yu & Fei You & Jian Wang & Zishan Wang, 2023. "Evolution Modes of Chili Pepper Industry Clusters under the Perspective of Social Network—An Example from Xinfu District, Xinzhou, Shanxi Province," Sustainability, MDPI, vol. 15(6), pages 1-14, March.
    4. Gabriel, Andreas & Bitsch, Vera, 2022. "Everywhere the same? Competitiveness of two regional vegetable production clusters in Southern Germany," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(01), August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mao, Jie & Tang, Shiping & Xiao, Zhiguo & Zhi, Qiang, 2021. "Industrial policy intensity, technological change, and productivity growth: Evidence from China," Research Policy, Elsevier, vol. 50(7).
    2. Justin Yifu Lin & Wei Wang & Venite Zhaoyang Xu, 2021. "Catch‐up industrial policy and economic transition in China," The World Economy, Wiley Blackwell, vol. 44(3), pages 602-632, March.
    3. Mucha-Leszko, Bogumiła, 2016. "Causes and Consequences of Deindustrialization in the Euro Area," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 16(31), pages 1-13, December.
    4. Otsuka, Keijiro & Ali, Mubarik, 2020. "Strategy for the development of agro-based clusters," World Development Perspectives, Elsevier, vol. 20(C).
    5. Girum Abebe & Tetsushi Sonobe, 2012. "Management Practices, Self-Selection into Management Training Participation, and Training Effects in the Garment Industry in Ethiopia," GRIPS Discussion Papers 11-23, National Graduate Institute for Policy Studies.
    6. Vu, Khuong & Hartley, Kris, 2018. "Promoting smart cities in developing countries: Policy insights from Vietnam," Telecommunications Policy, Elsevier, vol. 42(10), pages 845-859.
    7. Lee, Keun & Juma, Calestous & Mathews, John, 2014. "Innovation capabilities for sustainable development in Africa," WIDER Working Paper Series 062, World Institute for Development Economic Research (UNU-WIDER).
    8. Andreas Georgiadis & Christos N. Pitelis, 2016. "The Impact of Employees' and Managers' Training on the Performance of Small- and Medium-Sized Enterprises: Evidence from a Randomized Natural Experiment in the UK Service Sector," British Journal of Industrial Relations, London School of Economics, vol. 54(2), pages 409-421, June.
    9. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    10. Andrey E. Shastitko & Anna I. Meleshkina & Olga A. Markova, 2021. "The market regulation triad: Antitrust, industrial policy and protectionism in the optical fiber market," Upravlenets, Ural State University of Economics, vol. 12(1), pages 47-61, March.
    11. Roland Hodler, 2008. "Specialization and Welfare in the Presence of Imperfectly Integrated Capital Markets and Learning-by-doing," Open Economies Review, Springer, vol. 19(3), pages 391-402, July.
    12. Ofori, Isaac Kwesi, 2021. "Catching The Drivers of Inclusive Growth in Sub-Saharan Africa: An Application of Machine Learning," EconStor Preprints 235482, ZBW - Leibniz Information Centre for Economics.
    13. Ofori, Isaac Kwesi & Asongu, Simplice A., 2021. "ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa," MPRA Paper 107757, University Library of Munich, Germany.
    14. Stiglitz, Joseph E. & Yifu, Justin & Monga, Celestin, 2013. "The rejuvenation of industrial policy," Policy Research Working Paper Series 6628, The World Bank.
    15. Higuchi, Yuki & Nam, Vu Hoang & Sonobe, Tetsushi, 2015. "Sustained impacts of Kaizen training," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 189-206.
    16. Matteo Lucchese & Leopoldo Nascia & Mario Pianta, 2016. "Industrial policy and technology in Italy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 233-260, September.
    17. Justin Yifu Lin, 2013. "New structural economics: the third wave of development thinking," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 1-13, November.
    18. Yu, Chin-Hsien & Wu, Xiuqin & Lee, Wen-Chieh & Zhao, Jinsong, 2021. "Resource misallocation in the Chinese wind power industry: The role of feed-in tariff policy," Energy Economics, Elsevier, vol. 98(C).
    19. Graham Brownlow, 2015. "Back to the failure: an analytic narrative of the De Lorean debacle," Business History, Taylor & Francis Journals, vol. 57(1), pages 156-181, January.
    20. Tilman Altenburg & Wilfried Lütkenhorst, 2015. "Industrial Policy in Developing Countries," Books, Edward Elgar Publishing, number 14726.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifaamr:316246. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifamaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.