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The shoe industry of Marikina City, Philippines: a developing country cluster in crisis

Author

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  • Allen J. Scott

    (UCLA)

Abstract

I initiate the discussion with a few general remarks on industrial clusters and commodity chains. I describe the main features of the shoe industry in the Philippines. The core of the industry is located in Marikina City in the northeast of the Manila Metropolitan Area. I provide a detailed account of the internal structure and changing fortunes of this cluster. The deeply-rooted failures of the cluster since the early 1990s are pinpointed. I show that these can be directly related to the liberalization of the Filipino economy, and the concomitant increase in Chinese-made shoes on domestic markets. Various private and public responses to the crisis are described and evaluated. I argue that as helpful as many of these responses may be, their overall impact is likely to remain limited. I enumerate a series of possible policy options, but I also emphasize the high risks of failure. I try, in particular, to provide a developmental scenario based on cluster upgrading and intensified export activity.

Suggested Citation

  • Allen J. Scott, 2005. "The shoe industry of Marikina City, Philippines: a developing country cluster in crisis," Urban/Regional 0511003, EconWPA.
  • Handle: RePEc:wpa:wuwpur:0511003
    Note: Type of Document - pdf; pages: 24
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/urb/papers/0511/0511003.pdf
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    References listed on IDEAS

    as
    1. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
    2. Luiza Bazan & Lizbeth Navas-Alemán, 2004. "The underground revolution in the Sinos Valley: a comparison of upgrading in global and national value chains," Chapters,in: Local Enterprises in the Global Economy, chapter 5 Edward Elgar Publishing.
    3. Stella Lowder, 1999. "Globalisation of the Footwear Industry: A Simple Case of Labour?," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 90(1), pages 47-60, February.
    4. Schmitz, Hubert, 1999. "Global Competition and Local Cooperation: Success and Failure in the Sinos Valley, Brazil," World Development, Elsevier, vol. 27(9), pages 1627-1650, September.
    5. Stewart, Frances & Ghani, Ejaz, 1991. "How significant are externalities for development?," World Development, Elsevier, vol. 19(6), pages 569-594, June.
    6. Egan, Mary Lou & Mody, Ashoka, 1992. "Buyer-seller links in export development," World Development, Elsevier, vol. 20(3), pages 321-334, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Scott, Allen J., 2006. "The Changing Global Geography of Low-Technology, Labor-Intensive Industry: Clothing, Footwear, and Furniture," World Development, Elsevier, vol. 34(9), pages 1517-1536, September.

    More about this item

    Keywords

    shoe industry; industrial districts; regional development; clustering; agglomeration;

    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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