Clusters and Comparative Advantage: Implications for Industrial Policy

Arbeitspapier

Industrial agglomerations or `clusters` arise in the presence of industry-specific and local externalities, also called Marshallian externalities. The standard argument is that such externalities may justify a policy of infant-industry protection to allow and encourage clusters to emerge. This paper explores that argument and shows that different policy implications emerge under a more realistic modeling of clusters. In particular, rather than distorting prices to promote clusters in `advanced`sectors that may exhibit strong clustering possibilities, countries should focus instead on promoting clustering in current sectors that have demonstrated the strongest comparative advantage. Import substitution is not a proper way to achieve such a goal.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 523

Classification and Topics

• Classification: Wirtschaft
• Subject: Regionales Cluster ; Komparativer Vorteil ; Industriepolitik ; Importsubstitution ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Rodríguez-Clare, Andrés
• Event: Veröffentlichung
• (who): Inter-American Development Bank, Research Department
• (where): Washington, DC
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/88069
• Last update: 10.03.2025, 11:42 AM CET