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An inquiry into the transformation process of village-based industrial clusters: The case of an iron and steel cluster in northern Vietnam

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  • Hoang Nam, Vu
  • Sonobe, Tetsushi
  • Otsuka, Keijiro

Abstract

While village industries are known to play an important role in the development of rural areas in developing countries, little is known about village industries in transition economies. This paper inquires into the transformation process of a village industry in northern Vietnam from a traditional to a modern cluster where new iron and steel products are produced. We found that proprietors' human capital acquired by formal education and experience in marketing and management as well as their family ties are critically important for upgrading product lines and improving management, marketing, and consequently the overall performance of the village enterprises.

Suggested Citation

  • Hoang Nam, Vu & Sonobe, Tetsushi & Otsuka, Keijiro, 2009. "An inquiry into the transformation process of village-based industrial clusters: The case of an iron and steel cluster in northern Vietnam," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 568-581, December.
    • Handle: RePEc:eee:jcecon:v:37:y:2009:i:4:p:568-581
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    1. Akoten, John E & Sawada, Yasuyuki & Otsuka, Keijiro, 2006. "The Determinants of Credit Access and Its Impacts on Micro and Small Enterprises: The Case of Garment Producers in Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 927-944, July.
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    Cited by:

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    2. Khondoker, Abdul Mottaleb & Sonobe, Tetsushi, 2010. "Human Capital and Industrial Development: Evidence from the Machinery Industry in Bangladesh," MPRA Paper 44007, University Library of Munich, Germany.
    3. Higuchi, Yuki & Nam, Vu Hoang & Sonobe, Tetsushi, 2015. "Sustained impacts of Kaizen training," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 189-206.
    4. Pham Tien Thanh & Katsuhiro Saito, 2024. "Poverty reduction and migration in rural Vietnam: Role of local firm clusters," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 1231-1266, August.
    5. Joshi, Sumit & Mahmud, Ahmed Saber & Sarangi, Sudipta, 2020. "Network formation with multigraphs and strategic complementarities," Journal of Economic Theory, Elsevier, vol. 188(C).
    6. Suzuki, Aya & Vu, Hoang Nam & Sonobe, Tetsushi, 2014. "Willingness to pay for managerial training: A case from the knitwear industry in Northern Vietnam," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 693-707.
    7. Babur Wasim Arif, 2013. "Education, Experience and Enterprise Development," Journal of South Asian Development, , vol. 8(3), pages 273-299, December.
    8. Girum Abebe, 2015. "State-inducement Versus Self-initiation: A Comparative Study of Micro and Small Enterprises in Ethiopia," Working Papers 013, Policy Studies Institute.
    9. Shamsuzzoha & Makoto Tanaka, 2021. "The role of human capital on the performance of manufacturing firms in Bangladesh," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 21-33, January.
    10. Babur Wasim Arif & Sana Ullah, 2021. "From subcontractors to company owners: modeling firm-type choices in industrial clusters," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 153-161, December.
    11. Yuya Aikawa & Tomoko Hashino & Keijiro Otsuka, 2023. "Agglomeration with the Declining Marshallian Agglomeration Economies:An inquiry into the postwar development of the Nada sake brewing district in Japan," Discussion Papers 2308, Graduate School of Economics, Kobe University.
    12. Vu, Hoang Nam & Doan, Quang Hung, 2015. "Innovation and Performance of Enterprises: The Case of SMEs in Vietnam," MPRA Paper 70589, University Library of Munich, Germany.
    13. Hung Quang Doan & Nam Hoang Vu & Binh Tran-Nam & Ngoc-Anh Nguyen, 2022. "Effects of tax administration corruption on innovation inputs and outputs: evidence from small and medium sized enterprises in Vietnam," Empirical Economics, Springer, vol. 62(4), pages 1773-1800, April.

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