1997
DOI: 10.2307/1349744
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Rural Industrial Development: To Cluster or Not to Cluster?

Abstract: Current regional industrialization strategies encourage recruitment, small business development and business retention and expansion efforts to promote industry cluster development. The paper describes the advantages and disadvantages of promoting industry clusters as an industrial development alternative for rural areas. Advantages of successful cluster promotion include stronger external economies, a more conducive environment for industrial reorganization, greater networking among firms and more efficient u… Show more

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Cited by 86 publications
(67 citation statements)
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References 36 publications
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“…Two general approaches, however, dominate: value chain approaches, and horizontal linkages and networks. Linkages are cooperation between firms seeking to integrate some of their activities, exploit their complementarities in search of new markets, and pool sources of knowledge in order to achieve economies of scale or address common problems (Barkley & Henry, 2007). ME participation in value chains involves vertical (forward and backward) linkages, typically with larger firms, and often in the form of sub-contracts, franchising, licensing and supplier relationships.…”
Section: Resultsmentioning
confidence: 99%
“…Two general approaches, however, dominate: value chain approaches, and horizontal linkages and networks. Linkages are cooperation between firms seeking to integrate some of their activities, exploit their complementarities in search of new markets, and pool sources of knowledge in order to achieve economies of scale or address common problems (Barkley & Henry, 2007). ME participation in value chains involves vertical (forward and backward) linkages, typically with larger firms, and often in the form of sub-contracts, franchising, licensing and supplier relationships.…”
Section: Resultsmentioning
confidence: 99%
“…As mentioned earlier, business clusters are perceived to enhance regional economic growth and income (Barkley and Henry, 1998). The explanatory mechanism behind this assertion is that a rise in productivity determines real income in the region and, as defined by the Engel curve (Leeflang, Wittink, Wedel & Naert, 2000), a rise in real income increases the demand for goods and services in the region.…”
Section: Industry Performancementioning
confidence: 94%
“…Capacity development refers to a series of ensuing terms such as participation, empowerment, and community (Eade, Deboran;1997).…”
Section: Institutional Capacity Building Of Local Economymentioning
confidence: 99%