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Coordination Failures, Clusters, and Microeconomic Interventions

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  • Andrés Rodríguez-Clare

Abstract

The failure of market-oriented reforms to generate high and sustained growth in Latin America has led to the widespread agreement that such reforms should be complemented by other policies. The strategies to complement market-oriented reforms fall into three categories: macroeconomic policies to reduce the region’s high vulnerability to crises; institutional and microeconomic reforms to improve the business climate and provide better foundations for growth; and microeconomic or competitiveness policies that include a broad range of government interventions to allow markets, sectors, and companies to take advantage of the opportunities afforded by market-oriented reforms. This paper focuses on the third strategy, which I henceforth refer to as one of microeconomic interventions.

Suggested Citation

  • Andrés Rodríguez-Clare, 2005. "Coordination Failures, Clusters, and Microeconomic Interventions," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2005), pages 1-41.
    • Handle: RePEc:col:000425:014195
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    Cited by:

    1. E. G. Popkova & M. K. Romanova & L. I. Kukaeva, 2012. "Elaborate cluster policy – new vision for the regional development," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 4(2), pages 198-207, Decembre.
    2. Lambert, Thomas & Mattson, Gary & Dorriere, Kyle, 2016. "Industry Clustering and Unemployment in US Regions: An Exploratory Note," MPRA Paper 69584, University Library of Munich, Germany.
    3. Juan Carluccio & Thibault Fally, 2008. "Multinationals, technological incompatibilities and spillovers," Working Papers halshs-00586040, HAL.
    4. Lucas Figal Garone & Alessandro Maffioli & Joao Negri & Cesar Rodriguez & Gonzalo Vázquez-Baré, 2015. "Cluster development policy, SME’s performance, and spillovers: evidence from Brazil," Small Business Economics, Springer, vol. 44(4), pages 925-948, April.
    5. Victoria Castillo & Lucas Figal Garone & Alessandro Maffioli & Lina Salazar, 2015. "Tourism Policy, a Big Push to Employment: Evidence from a Multiple Synthetic Control Approach," IDB Publications (Working Papers) 87973, Inter-American Development Bank.
    6. Carluccio, Juan & Fally, Thibault, 2013. "Foreign entry and spillovers with technological incompatibilities in the supply chain," Journal of International Economics, Elsevier, vol. 90(1), pages 123-135.
    7. Brian K. Kovak, 2013. "Regional Effects of Trade Reform: What Is the Correct Measure of Liberalization?," American Economic Review, American Economic Association, vol. 103(5), pages 1960-1976, August.
    8. Huberto M. Ennis, 2005. "Complementariedades y Política Macroeconómica," IIE, Working Papers 054, IIE, Universidad Nacional de La Plata.
    9. Glavan, Bogdan, 2007. "Coordination Failures, Poverty Traps, "Big Push" Policy and Entrepreneurship: A Critical View," MPRA Paper 5757, University Library of Munich, Germany.
    10. Castillo, Victoria & Figal Garone, Lucas & Maffioli, Alessandro & Salazar, Lina, 2017. "The causal effects of regional industrial policies on employment: A synthetic control approach," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 25-41.
    11. Shreyas Gadgin Matha & Patricio Goldstein & Jessie Lu, 2020. "Air Transportation and Regional Economic Development: A Case Study for the New Airport in South Albania," CID Working Papers 127a, Center for International Development at Harvard University.

    More about this item

    Keywords

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    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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