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Industry Clusters and Rural Labor Markets
Abstract:Along with the recent resurgence of interest in the agglomeration and clustering of economic activity, there has been increasing interest in industry clusters as a potential economic development strategy. Ultimately, the question of whether or not clusters are an appropriate focus of economic development strategies for rural areas depends on the relationship between clusters and local economic growth. The primary purpose of this paper is to discuss some of the issues involved in measuring the relationship between clusters and rural economic growth. Preliminary evidence of a positive association between industry clusters and rural earnings growth are presented, supporting the notion that a cluster-focused development strategy may be effective in some rural areas.
Along with the recent resurgence of interest in the agglomeration and clustering of economic activity, there has been increasing interest in industry clusters as a potential economic development strategy. This interest is motivated by two general trends. First, recent research suggests that the rapid pace of technological change has altered the economic environment in ways that give establishments located in clusters petitive advantage over establishments located in relative isolation (Malecki 1991:252; Stohr 1986:29; and Porter 1995:58).To the extent that this is true, rural establishments, which are by definition in relatively isolated locations, will increasingly be at petitive disadvantage vis-a-vis establishments in urban areas.
The views expressed in this paper are solely the author's and do not necessarily reflect the views of either the Bureau of Economic Analysis or the . Department merce. The author gratefully acknowledges ments of two anonymous reviewers.
Industry Clusters and Labor Markets - Bernat
There is increasing dissatisfaction with what might be called the traditional economic development strategy of industrial recruitme