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Theory of a Flowchart Approach to Industrial Cluster Policy

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  • Kuchiki, Akifumi

Abstract

A flowchart approach to industrial cluster policy emphasizes the importance ofthe ordering of policy measures. The flow of policy implementation is to establish an industrial zone, to invite an anchor company, and to promote its related companies to invest in the industrial zone. This article delineated "a flowchart approach to industrial cluster policy" by proposing sufficient conditions for forming industrial clusters typical in the manufacturing industry in Asia to enhance regional economic growth. The typical industrial cluster policy was theorized by defining an industrial zone as "quasi-public goods", and it was shown that the policy enhances economic growth under a production function of "increasing returns to scale" of an anchor company. Critical amounts of the production of "scale economies" that are used by the related companies to decide whether or not to invest in clusters were also shown.

Suggested Citation

  • Kuchiki, Akifumi, 2005. "Theory of a Flowchart Approach to Industrial Cluster Policy," IDE Discussion Papers 36, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper36
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    References listed on IDEAS

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    1. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
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    Cited by:

    1. Arup Mitra, 2011. "Urbanization in India: Evidence on Agglomeration Economies," Working Papers id:4394, eSocialSciences.
    2. Kuchiki, Akifumi, 2007. "A Flowchart Approach to Malaysia's Automobile Industry Cluster Policy," IDE Discussion Papers 120, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Taguchi, Hiroyuki, 2018. "The involvement in global value chains and its policy implication in Vietnam," MPRA Paper 84367, University Library of Munich, Germany.
    4. Bei Hu & Rongzhi Liu, 2011. "The Interaction between the High-tech Industrial Cluster and its Surrounding Universities: The Case of Wuhan ‘Optical Valley’ Industrial Cluster," Chapters, in: Akifumi Kuchiki & Masatsugu Tsuji (ed.), Industrial Clusters, Upgrading and Innovation in East Asia, chapter 8, Edward Elgar Publishing.
    5. Pham, Thi Thanh Hong & Nguyen, Binh Giang, 2012. "Industrial Clustering Policy and Economic Restructuring in Vietnam," MPRA Paper 41471, University Library of Munich, Germany.
    6. Mitra, Arup & Tsujita, Yuko, 2006. "Migration and Wellbeing at the Lower Echelons of the Economy: A Study of Delhi Slums," IDE Discussion Papers 51, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    Flowchart approach; industrial cluster policy; sufficient conditions; regional economic growth; quasi-public goods; increasing returns to scale; scale economies; Industrial policy; Economics; Industrial estates; Economic development; Economic growth; 産業政策; 経済学; 工業地帯; 経済開発; 経済成長;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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