Industrial districts, social cohesion and economic decline in Italy | Zendy

Paolo Ramazzotti | Zendy

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Industrial districts, social cohesion and economic decline in Italy

Author(s) -

Paolo Ramazzotti

Publication year - 2009

Publication title -

cambridge journal of economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.261

H-Index - 83

eISSN - 1464-3545

pISSN - 0309-166X

DOI - 10.1093/cje/bep076

Subject(s) - vitality , cohesion (chemistry) , permissive , economics , outcome (game theory) , population , economic system , public economics , development economics , microeconomics , sociology , philosophy , chemistry , demography , theology , organic chemistry , biology , genetics

The economic and social vitality of industrial districts (IDs) depends on the interaction between two major sub-systems: a community of people and a population of firms. A range of circumstances determined inconsistencies between the rationales of these two sub-systems. The emergence of leader firms that substitute the ID as coordinating instances and cost scrapping as a strategy that bypasses quality enhancement undermine the ID as a system. The paper contends that this outcome is not the only possible one. An alternative would require a regulatory—as opposed to merely permissive—action of public actors

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