Division Of Labor, Government Role & Growth Of Industrial Cluster

The rapid development of industrial clusters has become a global economic phenomenon within the context of globalization and knowledge economy, while its importance has been universally recognized. Inquiry into the issues such as the basis for the evolution process of clusters, the mode of division-of-labor among the enterprises within the clusters, as well as the way they overcome the barriers to development, especially the capital barriers, are therefore of great theoretical and practical importance. The understanding of the above issues is critical prerequisite for enterprises and governments to discover and develop right strategies for the development of industrial cluster.The study first systematically reviewed the literature relative to the theory of industrial clusters, then summarized and analyzed two kinds of organizational forms of industrial cluster based on a case study of pens cluster from Fengshui Town of Zhejiang Province. The thesis utilize survey data to empirically explore the answer to two critical questions: first, how did the enterprises within the cluster overcome the barriers for substantial development they have achieved; and second, as a player outside the cluster, what's the impact and role played by the local government in this process. On the basis of the above-mentioned theoretical and empirical analysis, the study draws a conclusion and proposed policy recommendations for accelerating the healthy development of China's industrial clusters.The thesis is organized as six parts:Part I: Introduction. Background, purpose and significance, as well as the research design of the study are introduced.Part II: Literature Review. The author reviewed the mainstream theories about industrial cluster, theory of industrial clusters in developing countries, and domestic researches with regard to the theory of the division-of-labor based on specialization, which laid the theoretical foundation for the follow-up study;Part III: A Review of the Formation and Development Process of Fenshui Pens Clusters. This part presented a brief summary and assessment of the causes, current status and basic features of Fenshui Pens cluster in Zhejiang Province, along with an analysis and interpretation of the two kinds of organizational forms of production with the cluster.Part IV: The Division-of-Labor and Cooperation within Fenshui Pens Clusters and the Overcome of Capital Barriers. The study improved the theoretical framework from the theory of division-of-labor with a theoretical model and a mathematical model, and then verified the models with the survey data from Fenshui pens cluster. Quantitative and qualitative analyses were combined to do an in-depth investigation about how the enterprises overcome the capital barriers.Part V: An Inquiry of the Role of the Government during the Development of Industrial Cluster. The analysis was focused on the behavior, role and contribution of local government along the formation and development process of Fenshui pens cluster. Then the author provided a game theoretical analysis to explain the government's decision-making behavior in maintaining market order, and proposed an assessment for its possible failures, as well as some corresponding countermeasures.Part VI closed the whole thesis with research implications and policy recommendations for better facilitating the future development of China's industrial clusters.