Differences between the Industrial Clusters of Developed and Developing Countries: An empirical study of the factors involved and the solutions to be

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

The thesis provide an overview of industrial cluster in developed and developing countries. In recent years there has been great interest in the study of industrial clusters, the what are essentially clusters of companies, usually of an industry determined, in a geographic region. Industrial clusters are complex structures whose understanding is not so linear. One reason that few studies venture to determine precise causes for generation of clusters is the lack of a model that incorporates the different factors involved in the life cycle of these structures. The study uses a secondar methodology. The online databases were searched in order to acquire information. The study comprises of five chapters.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Introduction1

Problem Statement1

Research Aims and Objectives2

Significance of the Study2

Research Question2

CHAPTER 2: LITERATURE REVIEW3

A View from Case Studies3

Bangladesh vs. Ethiopia5

Learning from Abroad6

Employment Size of Industrial Clusters8

Technology, dynamism and industrial clusters in developing countries9

CHAPTER 3: METHODOLOGY11

Research Design11

Literature selection criteria11

Rationale for a Qualitative Study12

CHAPTER 4: DISCUSSION AND ANALYSIS13

Evolution and Life of a cluster cycle13

CHAPTER 5: CONCLUSION16

Conclusion16

WORKS CITED18

CHAPTER 1: INTRODUCTION

Introduction

The last four decades have witnessed a large number of successful cases of industrial development in Asia but possibly an equally large number of failures in other developing countries, particularly in Sub-Saharan Africa (SSA). While the governments of developing countries have been eager to realize industrial development for the last several decades, development economists have not made serious attempts to design strategies to develop industries (Hayami & Godo, 96-123).

Probably this is due partly to the failure of import substitution policy and partly to the commonly accepted neoclassical presumption that “industrial policy” does not work, and thus governments have to do little to promote industrial development beyond the provision of infrastructure such as roads, electricity, and communication systems (Lin, 151-78).

Problem Statement

Such a presumption, however, is incorrect to the extent that the government is able to address major market failures better than any private or non-market institutions or to support such institutions' corrective functions without causing a serious government failure. A major market failure arises from high transaction costs between manufacturing firms (e.g., assemblers and parts-suppliers) and between manufacturers and traders, particularly in developing countries, which are attributed to asymmetric (Syverson, 185-93).

Research Aims and Objectives

The aim of the study is to understand the main differences between the industrial clusters of developed and developing countries. Further the study will also elaborate the methods and technological changes required for reducing the widened gap between the ...