The Division of Labor and the Formation of Industrial Clusters in Taiwan

16 Pages Posted: 8 May 2006

See all articles by Tetsushi Sonobe

Tetsushi Sonobe

National Graduate Institute for Policy Studies

Keijiro Otsuka

National Graduate Institute for Policy Studies (GRIPS)

Abstract

While the role of clusters in promoting industrial development has been increasingly recognized in the literature, the locational choice of industrial clusters and the underlying factors affecting such a choice have seldom been analyzed, particularly in the context of industrial development in developing countries. In this article, the authors hypothesize that industrial clusters tend to be formed in suburban areas, where the division of labor among enterprises producing diverse products is intense. They obtained supportive evidence through regression analyses of changes in employment and value-added ratio using township-level census data of selected industries in Taiwan from 1976 to 1996.

Suggested Citation

Sonobe, Tetsushi and Otsuka, Keijiro, The Division of Labor and the Formation of Industrial Clusters in Taiwan. Review of Development Economics, Vol. 10, No. 1, pp. 71-86, February 2006, Available at SSRN: https://ssrn.com/abstract=875918 or http://dx.doi.org/10.1111/j.1467-9361.2005.00301.x

Tetsushi Sonobe (Contact Author)

National Graduate Institute for Policy Studies ( email )

7-22-1 Roppongi
Minato-ku
Tokyo, 106-8677
Japan

Keijiro Otsuka

National Graduate Institute for Policy Studies (GRIPS) ( email )

7-22-1 Roppongi,Minato,
Tokyo 106-8677
Japan

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