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An inquiry into the transformation process of village-based industrial clusters: The case of an iron and steel cluster in northern Vietnam


  • Hoang Nam, Vu
  • Sonobe, Tetsushi
  • Otsuka, Keijiro


While village industries are known to play an important role in the development of rural areas in developing countries, little is known about village industries in transition economies. This paper inquires into the transformation process of a village industry in northern Vietnam from a traditional to a modern cluster where new iron and steel products are produced. We found that proprietors' human capital acquired by formal education and experience in marketing and management as well as their family ties are critically important for upgrading product lines and improving management, marketing, and consequently the overall performance of the village enterprises.

Suggested Citation

  • Hoang Nam, Vu & Sonobe, Tetsushi & Otsuka, Keijiro, 2009. "An inquiry into the transformation process of village-based industrial clusters: The case of an iron and steel cluster in northern Vietnam," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 568-581, December.
  • Handle: RePEc:eee:jcecon:v:37:y:2009:i:4:p:568-581

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    References listed on IDEAS

    1. Akoten, John E & Sawada, Yasuyuki & Otsuka, Keijiro, 2006. "The Determinants of Credit Access and Its Impacts on Micro and Small Enterprises: The Case of Garment Producers in Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 927-944, July.
    2. Ranis, Gustav & Stewart, Frances, 1993. "Rural nonagricultural activities in development : Theory and application," Journal of Development Economics, Elsevier, vol. 40(1), pages 75-101, February.
    3. Altenburg, Tilman & Meyer-Stamer, JORG, 1999. "How to Promote Clusters: Policy Experiences from Latin America," World Development, Elsevier, vol. 27(9), pages 1693-1713, September.
    4. Humphrey, John & Schmitz, Hubert, 1996. "The Triple C approach to local industrial policy," World Development, Elsevier, vol. 24(12), pages 1859-1877, December.
    5. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-846, September.
    6. John E. Akoten & Keijiro Otsuka, 2007. "From Tailors to Mini-Manufacturers: The Role of Traders in the Performance of Garment Enterprises in Kenya," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(4), pages 564-595, August.
    7. Hymer, Stephen H & Resnick, Stephen, 1969. "A Model of an Agrarian Economy with Nonagricultural Activities," American Economic Review, American Economic Association, vol. 59(4), pages 493-506, Part I Se.
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    Cited by:

    1. Sumit Joshi & Sudipta Sarangi & Ahmed Saber Mahmud, 2017. "Network Formation with Multigraphs and Strategic Complementarities," Working Papers 2017-27, The George Washington University, Institute for International Economic Policy.
    2. Girum Abebe, 2015. "State-inducement Versus Self-initiation: A Comparative Study of Micro and Small Enterprises in Ethiopia," Working Papers 013, Ethiopian Development Research Institute.
    3. Suzuki, Aya & Vu, Hoang Nam & Sonobe, Tetsushi, 2014. "Willingness to pay for managerial training: A case from the knitwear industry in Northern Vietnam," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 693-707.
    4. 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.
    5. Vu, Hoang Nam & Doan, Quang Hung, 2015. "Innovation and Performance of Enterprises: The Case of SMEs in Vietnam," MPRA Paper 70589, University Library of Munich, Germany.


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