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INDUSTRIAL CLUSTER, NETWORK AND PRODUCTION VALUE CHAIN: A NEW FRAMEWORK FOR INDUSTRIAL DEVELOPMENT BASED ON SPECIALIZATION AND DIVISION OF LABOUR
Author(s) -
Li Ke,
Chu Chihning,
Hung Derfang,
Chang Chauchyun,
Li Songlin
Publication year - 2010
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2010.00528.x
Subject(s) - division of labour , economies of agglomeration , position (finance) , economics , scope (computer science) , production (economics) , globalization , industrial organization , value (mathematics) , cluster (spacecraft) , division (mathematics) , global value chain , value chain , economic geography , economic system , microeconomics , business , supply chain , market economy , computer science , marketing , arithmetic , mathematics , finance , machine learning , programming language
This paper develops a general equilibrium model with endogenous clusters and an endogenous network of division of labour to formalize and explore the interrelationship and rules of industrial clusters, the network of division of labour, and the economies of specialization and agglomeration in the new era of globalization and regionalization. The model suggests that institutional efficiency and competition among countries and industries will facilitate important circular effects, propelling and shaping the arrangement and allocation of industrial clusters, establishing their position in the value chain, and, consequently, determining the status of economic growth. In particular, the improvements in institutional efficiency of economic and technology systems will expand the demand for transactions and network size, which, in turn, will determine the development of cluster and network scope, as well as the position in the production value chain.