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Local government intervention and agro-cluster development: A comparative study of multi-stage ginger clusters in China

Author

Listed:
  • Li, Songze
  • Song, Yujing
  • Cao, Xiuwei
  • Huang, Jikun

Abstract

This paper examines how local government interventions relate to the formation and upgrading of agro-based clusters (ACs) using the ginger industry in China as a case study. We employ a comparative, multi-county, multi-decade framework that integrates administrative records, county gazetteers, remote sensing imagery, and business registration data. A key innovation of our study is the use of a metrics-based stage classification system to assess the development of four case counties that, despite comparable initial conditions, evolved into drastically different outcomes. Our analysis combines qualitative comparisons of their developmental trajectories with a panel regression approach to examine the relationship between local policy implementation and changes in cultivation scale and value chain structure. We find that while initial cluster emergence reflects agro-climatic suitability, subsequent stages of expansion, consolidation, and transformation correspond to the timing, sequencing, and coordination of interventions. Early investments in market infrastructure appear to support smallholder participation, while subsequent production support coincides with higher yields and quality. Market environment improvements coincide with integration into domestic and export networks. Early interventions tend to consolidate functional roles among first-movers, while latecomers face upgrading constraints. This study provides a framework for guiding stage-specific interventions to foster resilient, high-value agricultural clusters.

Suggested Citation

  • Li, Songze & Song, Yujing & Cao, Xiuwei & Huang, Jikun, 2026. "Local government intervention and agro-cluster development: A comparative study of multi-stage ginger clusters in China," China Economic Review, Elsevier, vol. 97(C).
  • Handle: RePEc:eee:chieco:v:97:y:2026:i:c:s1043951x26000441
    DOI: 10.1016/j.chieco.2026.102694
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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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