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Industrial Clusters in Developing Countries: A Survey of the Literature

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  • Theresa Thompson Chaudhry

    (Lahore School of Economics, Pakistan.)

Abstract

This paper provides a survey of the theoretical and empirical literature relating to industrial clusters. These clusters are groups of firms that are specialized by sector, located in close geographic proximity and consist of mostly small and medium sized enterprises. The benefits to firms from clustering are sometimes referred to as active and passive collective efficiency. Passive collective efficiency refers to benefits accruing to a firm by virtue of being in a cluster, such as access to markets and skilled labor, technological spillovers, flexible specialization, and reduced transaction costs. Active collective efficiency, on the other hand, stems from purposeful cooperation between clustered firms toundertake a large-scale project to upgrade production, such as entering into product marketing.

Suggested Citation

  • Theresa Thompson Chaudhry, 2005. "Industrial Clusters in Developing Countries: A Survey of the Literature," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 10(2), pages 15-34, Jul-Dec.
    • Handle: RePEc:lje:journl:v:10:y:2005:i:2:p:15-34
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    References listed on IDEAS

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    Cited by:

    1. Haroon, Maryiam & Chaudhry, Azam, 2014. "Where do new firms locate? The effects of agglomeration on the formation and scale of operations of new firms in Punjab," Economics Discussion Papers 2014-21, Kiel Institute for the World Economy (IfW Kiel).
    2. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    3. Fahd Rehman, 2012. "Human Capital and MultifacetedInnovation: Evidence from the Lahore Knitwear Cluster in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(2), pages 63-86, July-Dec.
    4. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    5. Sikander Rahim, 2012. "Industrialization by Fitting in: Acquiring Technology through Collaboration and Subcontracting," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 83-102, September.
    6. Getahun, Tigabu Degu, 2016. "The Effect of Industrial Cluster Policy on Firm Performance in Ethiopia: Evidence from the Leather Footware Cluster," Discussion Papers 229713, University of Bonn, Center for Development Research (ZEF).

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