Clustering as a Way to Lower Capital Barriers: The Case of the Cashmere Sweater Cluster in Zhejiang

Jianqing Ruan (), Longbao Wei () and Xiaobo Zhang

No 25280, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

Abstract: Understanding how small enterprises overcome capital barriers is the key to understanding China's rapid development. The literature traditionally emphasizes the development of financial market to raise small amount of loan. By studying the division of labor in the cashmere sweater cluster in Puyuan and the cash flow in the course of daily operation, this paper, argues instead that industry clusters lower capital entry access through the division of labor; various entities in the cluster obtain the capital required for daily operation by taking advantage of individual social capital and endogenous capital in the cluster.

Keywords: Industrial; Organization (search for similar items in EconPapers)
Pages: 10
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/25280/files/ip06ru07.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25280

DOI: 10.22004/ag.econ.25280

Access Statistics for this paper

More papers in 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().