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A cluster-based industrial development policy for low-income countries

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  • Otsuka, Keijiro
  • Sonobe, Tetsushi

Abstract

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.

Suggested Citation

  • Otsuka, Keijiro & Sonobe, Tetsushi, 2011. "A cluster-based industrial development policy for low-income countries," Policy Research Working Paper Series 5703, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5703
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    2. Page, John, 2012. "Aid, Structural Change and the Private Sector in Africa," WIDER Working Paper Series 021, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:unu:wpaper:wp2012-21 is not listed on IDEAS
    4. Khondoker Abdul Mottaleb & Kaliappa P. Kalirajan, 2014. "Determinants Of Labor-Intensive Exports By The Developing Countries: A Cross Country Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(05), pages 1-22.
    5. Emanuela Todeva, 2015. "Market-Driven Clusters as Prerequisites and Consequences of Smart Specialisation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(2), pages 250-269, June.
    6. Page, John & Soderbom, Måns, 2012. "Is Small Beautiful? Small Enterprise, Aid and Employment in Africa," WIDER Working Paper Series 094, World Institute for Development Economic Research (UNU-WIDER).
    7. Xu ZHANG, 2013. "Firms’ Location Choices in Guangdong," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(11), pages 1414-1434, November.

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    Keywords

    Economic Theory&Research; Labor Policies; ICT Policy and Strategies; Access to Finance; Political Economy;

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