A wet market in China. 2012 Xiaobo Zhang/IFPRI
MOTIVATION
Industrial “clustering” involves small businesses within the same industry banding together to specialize in one narrowly defined stage of production. This type of industrialization eases the burden of financing and has been highly successful in China, Ethiopia, and other developing countries. An IFPRI research team completed a clustering study involving four in-depth case studies in China, which demonstrated that, when adequately supported by local governments, clusters can serve as viable production structures in certain developing countries, especially those with high population densities and low capital endowments.
OUTCOMES
The cluster-based industrialization study conducted by IFPRI and its partners has been widely recognized by major Chinese media outlets, as well as the Economist, Forbes, the Financial Times, the New York Times, and the Wall Street Journal. In addition, IFPRI researchers were invited to prepare a background report on China’s regional development for the country’s next five-year plan.
