Introduction

Tetsushi Sonobe and Keijiro Otsuka ()

Chapter 1 in Cluster-Based Industrial Development, 2014, pp 1-14 from Palgrave Macmillan

Abstract: Abstract In order to reduce widespread poverty in low-income countries, it is essential to create jobs by promoting the development of labor-intensive manufacturing industries (Sonobe and Otsuka, 2006, 2011). Yet, there is no clear-cut, generally accepted, and effective strategy to develop such industries. This study attempts to provide an effective strategy to foster the development of labor-intensive industries in developing countries based on the results of management training experiments conducted in selected metalwork, garment, and shoe clusters in Ghana, Kenya, Ethiopia, Tanzania, and Vietnam as well as on a large number of our case studies of cluster-based industrial development in Asia and sub-Saharan Africa (SSA) compiled by Sonobe and Otsuka (2006, 2011). We pay special attention to micro and small enterprises (MSEs) in industrial clusters because clusters consisting of MSEs are ubiquitous, and at least some of them seem to have high potential to grow and generate employment. The very fact that they have survived competition in the increasingly globalized world indicates that they have a comparative advantage. At the same time, the fact that only a few of them have successfully developed warrants the detailed study of a development strategy that helps them overcome market failures without causing serious government failures.

Keywords: Gross Domestic Product; Comparative Advantage; Industrial Development; Management Training; Management Capacity (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-38511-6_1

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DOI: 10.1057/9781137385116_1

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