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The shoe industry of Marikina City, Philippines: a developing country cluster in crisis

Author

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  • Allen J. Scott

    (UCLA)

Abstract

I initiate the discussion with a few general remarks on industrial clusters and commodity chains. I describe the main features of the shoe industry in the Philippines. The core of the industry is located in Marikina City in the northeast of the Manila Metropolitan Area. I provide a detailed account of the internal structure and changing fortunes of this cluster. The deeply-rooted failures of the cluster since the early 1990s are pinpointed. I show that these can be directly related to the liberalization of the Filipino economy, and the concomitant increase in Chinese-made shoes on domestic markets. Various private and public responses to the crisis are described and evaluated. I argue that as helpful as many of these responses may be, their overall impact is likely to remain limited. I enumerate a series of possible policy options, but I also emphasize the high risks of failure. I try, in particular, to provide a developmental scenario based on cluster upgrading and intensified export activity.

Suggested Citation

  • Allen J. Scott, 2005. "The shoe industry of Marikina City, Philippines: a developing country cluster in crisis," Urban/Regional 0511003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpur:0511003
    Note: Type of Document - pdf; pages: 24
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/urb/papers/0511/0511003.pdf
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    References listed on IDEAS

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    1. Luiza Bazan & Lizbeth Navas-Alemán, 2004. "The underground revolution in the Sinos Valley: a comparison of upgrading in global and national value chains," Chapters, in: Hubert Schmitz (ed.), Local Enterprises in the Global Economy, chapter 5, Edward Elgar Publishing.
    2. Roberta Rabellotti, 1997. "External Economies and Cooperation in Industrial Districts," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-25794-2.
    3. Egan, Mary Lou & Mody, Ashoka, 1992. "Buyer-seller links in export development," World Development, Elsevier, vol. 20(3), pages 321-334, March.
    4. Ejaz Ghani, 1992. "How Significant are Externalities for Development?," Palgrave Macmillan Books, in: North-South and South-South, chapter 6, pages 118-161, Palgrave Macmillan.
    5. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
    6. Stella Lowder, 1999. "Globalisation of the Footwear Industry: A Simple Case of Labour?," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 90(1), pages 47-60, February.
    7. Schmitz, Hubert, 1999. "Global Competition and Local Cooperation: Success and Failure in the Sinos Valley, Brazil," World Development, Elsevier, vol. 27(9), pages 1627-1650, September.
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    Cited by:

    1. Allen J. Scott, 2022. "The constitution of the city and the critique of critical urban theory," Urban Studies, Urban Studies Journal Limited, vol. 59(6), pages 1105-1129, May.
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    3. Andreas Rauch & Robert van Doorn & Willem Hulsink, 2014. "A Qualitative Approach to Evidence–Based Entrepreneurship: Theoretical Considerations and an Example Involving Business Clusters," Entrepreneurship Theory and Practice, , vol. 38(2), pages 333-368, March.
    4. Scott, Allen J., 2006. "The Changing Global Geography of Low-Technology, Labor-Intensive Industry: Clothing, Footwear, and Furniture," World Development, Elsevier, vol. 34(9), pages 1517-1536, September.
    5. Haibo Chen & Jiawei Lu, 2023. "Does Cultural Agglomeration Affect Green Total Factor Productivity? Evidence from 279 Cities in China," Sustainability, MDPI, vol. 15(9), pages 1-23, April.

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    More about this item

    Keywords

    shoe industry; industrial districts; regional development; clustering; agglomeration;
    All these keywords.

    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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