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A cluster-based industrial development policy for low-income countries
 
Author:Otsuka, Keijiro; Sonobe, Tetsushi; Collection Title:Policy Research working paper ; no. WPS 5703
Country:World; Date Stored:2011/06/22
Document Date:2011/06/01Document Type:Policy Research Working Paper
Language:EnglishRegion:The World Region
Report Number:WPS5703SubTopics:Access to Finance; Political Economy; Economic Theory & Research; Labor Policies; ICT Policy and Strategies
Volume No:1 of 1  

Summary: 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.

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