The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou

Wenzhou used to be one of the poorest regions in eastern China. With limited arable land, poor road access to major cities, and little support from the upper level governments, this region seemed to lack all the conditions necessary for economic growth. However, over the past several decades Wenzhou...

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Detalles Bibliográficos
Autores principales: Huang, Zuhui, Zhang, Xiaobo, Zhu, Yunwei
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2007
Materias:
Acceso en línea:https://hdl.handle.net/10568/160194
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author Huang, Zuhui
Zhang, Xiaobo
Zhu, Yunwei
author_browse Huang, Zuhui
Zhang, Xiaobo
Zhu, Yunwei
author_facet Huang, Zuhui
Zhang, Xiaobo
Zhu, Yunwei
author_sort Huang, Zuhui
collection Repository of Agricultural Research Outputs (CGSpace)
description Wenzhou used to be one of the poorest regions in eastern China. With limited arable land, poor road access to major cities, and little support from the upper level governments, this region seemed to lack all the conditions necessary for economic growth. However, over the past several decades Wenzhou has developed the most dynamic private sector in China, and has accordingly achieved one of the fastest growth rates. In particular, the footwear industry in Wenzhou has grown from a negligible market share to the largest in China. Here, we report a survey of 140 Wenzhou-based footwear enterprises of various scales, and use this information to examine the driving forces behind the dramatic rural industrial growth seen in this region. Our results show that clustering deepens the division of labor in the production process and makes it possible for small entrepreneurial firms to enter the industry by focusing on a narrowly defined stage of production. Therefore, Wenzhou represents an example of how clustering plays a significant role in helping fledgling rural industries overcome the growth constraints of capital and technology in the incipient stage of industrialization.
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spelling CGSpace1601942025-11-06T05:31:11Z The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou Huang, Zuhui Zhang, Xiaobo Zhu, Yunwei industrialization finance economic development Wenzhou used to be one of the poorest regions in eastern China. With limited arable land, poor road access to major cities, and little support from the upper level governments, this region seemed to lack all the conditions necessary for economic growth. However, over the past several decades Wenzhou has developed the most dynamic private sector in China, and has accordingly achieved one of the fastest growth rates. In particular, the footwear industry in Wenzhou has grown from a negligible market share to the largest in China. Here, we report a survey of 140 Wenzhou-based footwear enterprises of various scales, and use this information to examine the driving forces behind the dramatic rural industrial growth seen in this region. Our results show that clustering deepens the division of labor in the production process and makes it possible for small entrepreneurial firms to enter the industry by focusing on a narrowly defined stage of production. Therefore, Wenzhou represents an example of how clustering plays a significant role in helping fledgling rural industries overcome the growth constraints of capital and technology in the incipient stage of industrialization. 2007 2024-11-21T09:50:14Z 2024-11-21T09:50:14Z Working Paper https://hdl.handle.net/10568/160194 en Open Access application/pdf International Food Policy Research Institute Huang, Zuhui; Zhang, Xiaobo; Zhu, Yunwei. The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou. IFPRI Discussion Paper 705. International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/160194
spellingShingle industrialization
finance
economic development
Huang, Zuhui
Zhang, Xiaobo
Zhu, Yunwei
The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou
title The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou
title_full The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou
title_fullStr The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou
title_full_unstemmed The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou
title_short The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou
title_sort role of clustering in rural industrialization a case study of the footwear industry in wenzhou
topic industrialization
finance
economic development
url https://hdl.handle.net/10568/160194
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