Article thumbnail

The Formation of Wenzhou Footwear Clusters: How Were the Entry Barriers Overcome?

By Zuhui Huang, Xiaobo Zhang and Yunwei Zhu

Abstract

Wenzhou used to be one of the poorest regions in eastern China. With limited arable land, poor road access to major cities, and little support from the government, it seemed to lack all the necessary conditions for economic growth according to the standard textbook. However, over the past several decades, Wenzhou has achieved one of the fastest growing rates and owned the most dynamic private sector in China. The footwear industry in particular has grown from a negligible place to the largest market share and has formed one of the largest industry clusters in China. Therefore, the footwear industry provides us with a good example to unde rstand the driving forces behind the dramatic rural industrial growth. For this study, we undertake a survey on about 140 enterprises at different scales in Wenzhou. The survey enables us to examine how the start -up capital, credit, technology, and institutional barriers have been overcome in the formation process.International Relations/Trade,

OAI identifier:
Downloaded from http://purl.umn.edu/25371

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.

Suggested articles

Citations

  1. (1999). African enterprise clusters and industrialization: theory and reality. World development
  2. (2002). Back-Alley Banking,
  3. (2003). born in
  4. (2004). From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China.
  5. (1999). Global Competition and Local Cooperation: Success and Failure in the Sinos Valley, Brazil. World Development.
  6. (2006). How Important are Financing Constraints? The Role of Finance in the Business Environment"
  7. (2003). If economists are so smart, why is Africa so poor? The Wall Street Journal,
  8. (1990). Institutions, Institutional Change, and Economic Performance,
  9. (2004). Law, Finance, and Economic Growth in China"
  10. (2005). Maria Otero and Elisabeth Rhyne, The New World of Microenterprise Finance: Building Healthy Financial Institutions for the Poor,
  11. (2003). Microenterprise Development Programs in the United States and in the Developing World, World Development,
  12. (2002). Microequity and Microfinance, World Development,
  13. (2002). Process of Cluster Formation in china: A Case Study of a Gwrment Town.
  14. (1999). Specialization and Economic Organizatons- An Emerging ClassicalcMicroeconomics Framework[M].Translated by Zhang Yugang, Beijing: Economic Sciences Publishing House,
  15. (1998). Structure of rural-based industrialization: metal craft manufacturing on the outskirts of greater Manila, the Philippines. The developing economics. XXXVI-2(June
  16. (2003). Tetsushi Sonobe and Keijiro Otsuka.
  17. (1985). The Economic Institutions of Capitalism.
  18. (2002). The General Mode of Rural Industry Development in China—““???”, The 6 th issue of
  19. (1776). The wealth of nations. Bantam Classic Edition,
  20. (1995). Wenzhou Shoemaking Industry: From Local Cluster to Global Value Chain, Wenzhou Fo rum, 2005,(3) 18 Hubert Schmitz.