Theory of a Flowchart Approach to Industrial Cluster Policy
Kuchiki Akifumi
No 36, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)
Abstract:
A flowchart approach to industrial cluster policy emphasizes the importance ofthe ordering of policy measures. The flow of policy implementation is to establish an industrial zone, to invite an anchor company, and to promote its related companies to invest in the industrial zone. This article delineated "a flowchart approach to industrial cluster policy" by proposing sufficient conditions for forming industrial clusters typical in the manufacturing industry in Asia to enhance regional economic growth. The typical industrial cluster policy was theorized by defining an industrial zone as "quasi-public goods", and it was shown that the policy enhances economic growth under a production function of "increasing returns to scale" of an anchor company. Critical amounts of the production of "scale economies" that are used by the related companies to decide whether or not to invest in clusters were also shown.
Keywords: Flowchart approach; industrial cluster policy; sufficient conditions; regional economic growth; quasi-public goods; increasing returns to scale; scale economies; Industrial policy; Economics; Industrial estates; Economic development; Economic growth; 産業政策; 経済学; 工業地帯; 経済開発; 経済成長 (search for similar items in EconPapers)
JEL-codes: O14 R12 R58 (search for similar items in EconPapers)
Date: 2005-09-01
New Economics Papers: this item is included in nep-geo, nep-sea and nep-ure
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Citations: View citations in EconPapers (6)
Published in IDE Discussion Paper = IDE Discussion Paper, No. 36. 2005-09-01
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