By United Nations
A file that discusses the possibilities and constraints confronted via teams of nations: the international locations of the 'bottom billion' attempting to holiday into worldwide markets for synthetic items, and the middle-income nations which are striving to maneuver as much as extra subtle production.
Read or Download Industrial Development Report 2009: Breaking In and Moving Up: New Industrial Challenges for the Bottom Billion and the Middle-Income Countries PDF
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Additional resources for Industrial Development Report 2009: Breaking In and Moving Up: New Industrial Challenges for the Bottom Billion and the Middle-Income Countries
It may be that key economies of scale occur at the level of each step, or task, rather than at the level of the entire product. It may be highly efficient to have all firms manufacturing windscreens located in the same city, yet be inefficient to have all the firms that manufacture the myriad of parts that go into a vehicle located in the same city. Crucially, as transport and coordination costs fall among stages of production, it may no longer be efficient for the production of different steps or tasks to continue to be located in the same country.
Marshall (1920) argued that the proximity of firms in similar or related activities can lead to a number of localized external economies. Among the advantages he identified were access to a pool of specialized workers, quick access to supplies of inputs and access to knowledge relevant for the firm. The newer literature on agglomeration emphasizes knowledge and pecuniary externalities. Recent work on agglomeration externalities suggests that they can be present in a number of different circumstances: • Externalities that arise from the presence of a large number of firms in the same industry in a specific location • Externalities that arise from the presence of a large number of closely related industries—including suppliers and purchasers—in a specific location • Externalities that arise from the presence of a large number of firms in unrelated industries in the same location To a great extent, the first two types of agglomeration conform to the popular view of an “industrial cluster”.
Slow-growing middleincome countries lagged behind their more successful middle-income rivals in such sectors as machinery and electrical machinery. 4 U-shaped specialization, industrial diversity and gross domestic product per capita Less sophisticated products Specialization Slow-growing low-income countries Highincome countries Fast-growing low-income countries Moving towards sophisticated products Slow-growing middleincome countries Low- and mediumsophisticated products Fast growing middleincome countries GDP per capita Source: UNIDO.