IDEAS home Printed from https://ideas.repec.org/a/taf/oxdevs/v27y1999i1p81-107.html
   My bibliography  Save this article

The cutting Edge: Collective efficiency and international competitiveness in Pakistan

Author

Listed:
  • Khalid Nadvi

Abstract

Clustering can provide important benefits for small- and medium-sized enterprises in the developing world. Yet gaps remain in our understanding of how such clusters organize, function and compete. This paper draws on case material from a Pakistani cluster, a global player in the world market for surgical instruments, to argue that cheap labour is an insufficient explanation for international success. Instead, it argues that collective efficiency gams of clustering namely passively acquired external economies and actively generated joint action benefits, are central to competitiveness. The paper shows that while all firms in the cluster gain from agglomeration economies, the extent of inter-firm co-operation, and the benefits arising from it, are highly differentiated. It concludes that external economies, while necessary, are not sufficient to bring about growth. For growth, joint action, particularly in strategic vertical ties with local subcontractors and external buyers, is critical.

Suggested Citation

  • Khalid Nadvi, 1999. "The cutting Edge: Collective efficiency and international competitiveness in Pakistan," Oxford Development Studies, Taylor & Francis Journals, vol. 27(1), pages 81-107.
  • Handle: RePEc:taf:oxdevs:v:27:y:1999:i:1:p:81-107
    DOI: 10.1080/13600819908424167
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/13600819908424167
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Oddone, Nahuel & Padilla, Ramón, 2016. "Strengthening value chains: A toolkit," Sede Subregional de la CEPAL en México (Estudios e Investigaciones) 40911, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Padilla Bernal Luz Evelia & Reyes Rivas Eliver & Pérez Veyna Oscar, 2012. "Evaluación de un cluster bajo agricultura protegida en México," Contaduría y Administración, Accounting and Management, vol. 57(3), pages 219-237, julio-sep.
    3. Babur Wasim Arif & Tetsushi Sonobe, 2012. "Virtual Incubation in Industrial Clusters: A Case Study in Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 48(3), pages 377-392, March.
    4. Henry Overman & Anthony J. Venables, 2005. "Cities in the Developing World," CEP Discussion Papers dp0695, Centre for Economic Performance, LSE.
    5. Coslovsky, Salo V., 2014. "Economic Development without Pre-Requisites: How Bolivian Producers Met Strict Food Safety Standards and Dominated the Global Brazil-Nut Market," World Development, Elsevier, vol. 54(C), pages 32-45.
    6. Tomoko Hashino & Keijiro Otsuka, 2013. "Hand looms, power looms, and changing production organizations: the case of the Kiryū weaving district in early twentieth-century Japan," Economic History Review, Economic History Society, vol. 66(3), pages 785-804, August.
    7. Nadvi, Khalid, 1999. "Collective Efficiency and Collective Failure: The Response of the Sialkot Surgical Instrument Cluster to Global Quality Pressures," World Development, Elsevier, vol. 27(9), pages 1605-1626, September.
    8. Ruan, Jianqing & Zhang, Xiaobo, 2010. "“Made in China”: Crisis begets quality upgrade," IFPRI discussion papers 1025, International Food Policy Research Institute (IFPRI).
    9. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Philipps University Marburg, Department of Geography.
    10. Saon Ray & Nisha Taneja & Neetika Kaushal, 2011. "Opening India’s Garments Sector to South Asia," Working Papers id:4461, eSocialSciences.
    11. Overman, Henry G. & Venables, Anthnony J., 2010. "Evolving City Systems," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Statistics

    Access and download statistics

    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:taf:oxdevs:v:27:y:1999:i:1:p:81-107. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CODS20 .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.