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| INDUSTRIAL CLUSTERS IN RURAL AREAS, NETWORKS AND THE RISING OF CENTRAL CHINA |
| LI Er-ling1,2, LI Xiao-jian1,2 |
1. College of Environment and Planning, Henan University, Kaifeng 475001, China;
2. Institute of Regional and Urban Studies, Henan University of Finance and Economics, Zhengzhou 450002, China |
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Abstract Since the reform and opening, the six provinces in central China (Shanxi, Henan, Hubei, Hunan, Anhui and Jiangxi) have stayed in a slower position in growth rate as compared to other Chinese regions. This paper argues that the strategy of promoting cluster or developing local inter-firm networks is an effective way of accelerating growth of central China, based on the analysis on the problems of central areas. Compared with the economic situation of the whole nation, the six provinces of central China have the lower per capita gross domestic product (GDP) and the lower per capita annual net income of rural residents, the larger proportions of primary industry and rural populations, the slower phase of industrialization, openness and marketability and the higher percentages of the state-owned economies. Developing industrial clusters and networks in rural areas can foster the competitiveness of the local industries, encourage the industrialization and urbanization, and improve the development of county economies. A large numbers of literature on industrial clusters discuss that the network linkages between firms or organizations are the essential characteristics of industrial clusters. So, fostering industrial clusters should start with constructing the inter-firm networks. At la st, this paper also presents some propositions on how to construct industrial clusters and networks in rural areas of central China, such as:1) extending the local industrial chains to develop special and ascendant industrial clusters; 2) improving regional context to attract the first enterprise or the source of the chain into here; 3) fostering entrepreneurial spirits and local trust to accumulate local social capital; 4) encouraging the network linkages between local enterprises and the various serve organizations, including research institutes, educational departments and the government, and extending local industrial chains to the outside of clusters.
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Received: 15 July 2005
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2006, Vol. 21 
