Process of Cluster Formation in China: A Case Study of a Garment Town

In China industrial clusters consisting of small and medium enterprises have been proliferating in areas where private sectors have successfully developed. This study inquires into the process of forming a new industrial cluster and the roles of local and distant urban traders in the garment industr...

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Bibliographic Details
Published inThe Journal of development studies Vol. 39; no. 1; pp. 118 - 139
Main Authors Sonobe, T., Hu, D., Otsuka, K.
Format Journal Article
LanguageEnglish
Published Abingdon Taylor & Francis Group 01.10.2002
Taylor and Francis Journals
Taylor & Francis Ltd
SeriesThe Journal of Development Studies
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Summary:In China industrial clusters consisting of small and medium enterprises have been proliferating in areas where private sectors have successfully developed. This study inquires into the process of forming a new industrial cluster and the roles of local and distant urban traders in the garment industry in China. We found that the local marketplace, where enterprise managers can easily purchase materials from and sell products to local traders, plays a critical role in stimulating the entry of new enterprises in the early stage of cluster development. As a cluster develops, however, entrepreneurial ability in producing high-quality products and marketing them to urban traders plays a more significant role.
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ISSN:0022-0388
1743-9140
DOI:10.1080/00220380412331322691