Abstract
Growth has been increasingly found to occur in regional agglomerations of firms producing interlinked goods and services. Such dynamic agglomerations/clusters in the “developing” countries have gained more visibility recently among policy makers and global capital looking for “effective” locations. The growing recognition of such phenomena — along with a perceived reduction in the role of the nation-state — has led to scholars arguing a case for the rescaling of economic regulation (Peck 2002). Since then, the “regional agglomeration” has emerged as a prime target for intervention, to improve the ability of these agglomerations to compete in global markets. Critical to the dynamism of such clusters is an array of institutions ranging from those that reduce transaction costs, to those that help them dynamically compete — provisioning of credit, technological capabilities and market information. A vital component of this local institutional milieu is a dynamic labor market that fosters skill formation and diffusion across firms. Creating such conditions for skill formation and social upgrading is a key challenge for policy makers in the developing world, as they seek to negotiate the imperatives of production for global markets and move into more value-adding segments of global-value chains.
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Vijayabaskar, M., Jeyaranjan, J. (2011). The Institutional Milieu of Skill Formation: A Comparative Study of Two Textile Regions in India and China. In: Ohara, M., Vijayabaskar, M., Lin, H. (eds) Industrial Dynamics in China and India. IDE-JETRO Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230308305_7
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