Cluster-Based Industrial Development: A Comparative Study of by Tetsushi Sonobe, Keijiro Otsuka

By Tetsushi Sonobe, Keijiro Otsuka

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Moreover, these coefficients become larger over time. 19 billion VND in 2005. 43 in 2005. 59) 136 (8) 2005 Sweater revenue (Tobit) Numbers in parentheses are t-statistics calculated on heteroskedasticity-robust standard errors for regressions of value added and total revenue and z-statistics for regressions of export revenue and sweater revenue. **Significant at the 1% level, *at the 5% level (one-sided test). 9 32 Cluster-Based Industrial Development human capital becomes increasingly important in determining the size of enterprises over time.

Also, the fact that the products are exported mainly to Eastern Europe indicates either weak marketing capacity or inferior quality of products or both. Therefore, it seems that there is a role to be played by the public sector in further development of the garment industry studied in this chapter. In order to test the validity of this proposition, we plan to offer management training programs to entrepreneurs in Laphu in 2010 to enhance their managerial human capital, including their ability to export.

While subcontractors are located both in and outside Laphu, unregistered workshops are all located within the village. There are three different marketing channels for unregistered workshops: receiving putting-out contracts from registered companies; selling to the domestic market; and selling to the foreign market. They produce final products if selling to the domestic and foreign market, while leaving the packing process to registered companies if they receive putting-out orders from them. In relation to subcontractors, workshops give putting-out orders; in relation to registered companies, workshops receive puttingout orders.

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