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A Cluster-Based Industrial Development Policy for Low-Income Countries

Listed author(s):
  • Keijiro Otsuka

    (National Graduate Institute for Policy Studies)

  • Tetsushi Sonobe

    (National Graduate Institute for Policy Studies)

The need to construct an effective strategy for industrial development in low-income countries has been largely ignored by development economists because industrial policies have failed in many developing countries. This does not imply, however, that industrial development cannot be promoted. This paper attempts to synthesize the conventional wisdom in development economics with recent advancements in various fields of economics (such as theories of endogenous growth and agglomeration economies) to provide a useful framework to design a strategy for industrial development, which consists of investments in managerial human capital followed by the provision of credit and the construction of industrial zones.

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Paper provided by National Graduate Institute for Policy Studies in its series GRIPS Discussion Papers with number 11-09.

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Length: 41 pages
Date of creation: Sep 2011
Handle: RePEc:ngi:dpaper:11-09
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