Theories of Agglomeration: Critical Analysis from a Policy Perspective

Célestin Monga
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Célestin Monga: World Bank

Chapter 3.5 in The Industrial Policy Revolution I, 2013, pp 209-224 from Palgrave Macmillan

Abstract: Abstract Science fiction and fantasy writer Vera Nazarian famously observed that “luck is not as random as you think. Before that lottery ticket won the jackpot someone had to buy it.” Many economic theorists have neglected that wisdom and mistakenly reduced the existence of clusters (defined as geographical concentrations of interconnected companies with close supply links, specialist suppliers, service providers, and related industries and institutions) to an almost banal phenomenon that randomly occurs whenever private firms gather by accident in someplace, start trading together, and eventually realize that it is more profitable even for competitors to stick together in a specific location. Clusters have thus been viewed merely as byproducts of economic development.

Keywords: Comparative Advantage; Knowledge Spillover; Industrial Policy; Special Economic Zone; Historical Accident (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-137-33517-3_14

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DOI: 10.1057/9781137335173_14

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