Industrial districts, social cohesion and economic decline in Italy

Paolo Ramazzotti

Cambridge Journal of Economics, 2010, vol. 34, issue 6, 955-974

Abstract: The economic and social vitality of industrial districts (IDs) depends on the interaction between two major sub-systems: a community of people and a population of firms. A range of circumstances determined inconsistencies between the rationales of these two sub-systems. The emergence of leader firms that substitute the ID as coordinating instances and cost scrapping as a strategy that bypasses quality enhancement undermine the ID as a system. The paper contends that this outcome is not the only possible one. An alternative would require a regulatory--as opposed to merely permissive--action of public actors. Copyright The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.

Date: 2010
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