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Productivity growth and job creation in the development process of industrial clusters

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  • Sonobe, Tetsushi
  • Higuchi, Yuki
  • Otsuka, Keijiro

Abstract

Poor management has long been suspected as a major constraint on job creation in the manufacturing sector in low-income countries. In this sector, countless micro and small enterprises in industrial clusters account for a large share of employment. This paper examines the roles of industrial clusters, managerial capacities, and entrepreneurship in improving productivity and creating jobs, by reviewing the literature and case studies, including recent experiments. It finds that managerial capacities are a major determinant of firms'employment sizes and productivity growth, and that it is high innovative capacities, accompanied by high managerial capacities, that boost cluster-based industrial development.

Suggested Citation

  • Sonobe, Tetsushi & Higuchi, Yuki & Otsuka, Keijiro, 2012. "Productivity growth and job creation in the development process of industrial clusters," Policy Research Working Paper Series 6280, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6280
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    References listed on IDEAS

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    Cited by:

    1. Nagler, Paula & Naudé, Wim, 2017. "Non-farm entrepreneurship in rural sub-Saharan Africa: New empirical evidence," Food Policy, Elsevier, vol. 67(C), pages 175-191.
    2. Tigabu D. Getahun & Espen Villanger, 2015. "Labor-intensive jobs for women and development: Intrahousehold welfare effects and its transmission channels," CMI Working Papers 15, CMI (Chr. Michelsen Institute), Bergen, Norway.
    3. Szirmai A. & Gebreeyesus M. & Guadagno F. & Verspagen B., 2013. "Promoting productive employment in Sub‐Saharan Africa : a review of the literature," MERIT Working Papers 062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Getahun, Tigabu Degu, 2016. "The Effect of Industrial Cluster Policy on Firm Performance in Ethiopia: Evidence from the Leather Footware Cluster," Discussion Papers 229713, University of Bonn, Center for Development Research (ZEF).

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    Keywords

    Labor Policies; Labor Markets; E-Business; Microfinance; Economic Theory&Research;

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