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

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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Bibliographic Details
Main Authors: Otsuka, Keijiro, Sonobe, Tetsushi
Language:English
Published: 2011-06-01
Subjects:ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCOUNTING, ADJUSTMENT POLICIES, ADVISERS, AGRICULTURE, ALLOCATION, ASYMMETRIC INFORMATION, BORROWING, BUSINESS CONSULTANTS, BUSINESS CYCLE, BUSINESS TRAINING, CAPITAL ACCUMULATION, CAPITAL FORMATION, CAPITAL INVESTMENT, CAPITALISM, CASH FLOWS, CITIES, COLLABORATION, COMMUNICATION NETWORKS, COMPARATIVE ADVANTAGE, COMPARATIVE ADVANTAGES, COMPARATIVE ANALYSIS, COMPARATIVE ECONOMICS, COMPETITIVE MARKET ENVIRONMENTS, CONSUMERS, CORRUPTION, CREDIT ACCESS, CREDIT ANALYSIS, CREDIT CONSTRAINTS, CREDIT MARKETS, CULTURAL CHANGE, DEVELOPMENT BANKS, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICIES, DEVELOPMENT POLICY, DEVELOPMENT STRATEGY, DIVISION OF LABOR, ECONOMIC DEVELOPMENT, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ECONOMIC HISTORY, ECONOMIC RESEARCH, EMPLOYMENT, ENDOWMENTS, ENGINEERS, ENTERPRISE DEVELOPMENT, ENTREPRENEUR, ENTREPRENEURS, EQUAL ACCESS, EXCHANGE CONTROL, EXTERNALITIES, FACILITATION, FAMILIES, FEMALE ENTREPRENEURSHIP, FINANCES, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL LITERACY, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL SECTOR, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTMENTS, FOREIGN FIRMS, FORMAL CREDITS, FREE PRESS, GOVERNMENT POLICIES, GROWTH THEORY, HOUSEHOLDS, HUMAN CAPITAL, INCOME, INCREASING RETURNS, INDUSTRIAL DEVELOPMENT, INDUSTRIAL ECONOMIES, INDUSTRIALIZATION, INNOVATION, INPUT PRICES, INTERNATIONAL BANK, INTERNATIONAL TRADE, INVENTIONS, INVENTORY, LABOR MANAGEMENT, LABOR MARKETS, LABOR PRODUCTIVITY, LACK OF CREDIT, LEARNING, LENDERS, LITERACY, MARGINAL PRODUCT, MARKET FAILURES, MERGERS, NEW BUSINESS, NEWLY INDUSTRIALIZED COUNTRIES, PER CAPITA INCOME, POLITICAL ECONOMY, PRIVATE SECTOR, PRODUCTIVITY, PROFITABILITY, PROPERTY RIGHTS, PROVISION OF CREDIT, PUBLIC GOODS, RATES OF RETURN, RELATIONAL CONTRACTING, SCALE EFFECT, SEARCH COSTS, SKILLED LABOR, SKILLED WORKERS, SMALL ENTERPRISES, SOCIAL CAPITAL, SOCIAL INFRASTRUCTURE, SPECIALIZATION, START-UP, STRUCTURAL CHANGE, SUPPLIERS, TAX, TECHNICIANS, TECHNOLOGY TRANSFER, TERM CREDIT, TOTAL OUTPUT, TRADE CREDIT, TRAINING PROGRAMS, TRANSACTION COSTS, URBAN DEVELOPMENT, VENTURE CAPITAL, VILLAGE, WEALTH, WEALTH OF NATIONS,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110622152531
https://hdl.handle.net/10986/3467
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