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A Cluster-Based Industrial Development Policy for Low-Income Countries

Keijiro Otsuka () and Tetsushi Sonobe ()

No 11-09, GRIPS Discussion Papers from National Graduate Institute for Policy Studies

Abstract: The need to construct an effective strategy for industrial development in low-income countries has been largely ignored by development economists because industrial policies have failed in many developing countries. This does not imply, however, that industrial development cannot be promoted. This paper attempts to synthesize the conventional wisdom in development economics with recent advancements in various fields of economics (such as theories of endogenous growth and agglomeration economies) to provide a useful framework to design a strategy for industrial development, which consists of investments in managerial human capital followed by the provision of credit and the construction of industrial zones.

Keywords: Competitive market environments; comparative advantage; industrial cluster; managerial training; provision of credit; construction of industrial zones (search for similar items in EconPapers)
Pages: 41 pages
Date: 2011-09
New Economics Papers: this item is included in nep-cse, nep-dev and nep-ure
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