Identifying Industry Clusters in Colombia Based on Graph Theory

Abstract

This paper presents a new way to identify and understand the industry clusters in the Colombianeconomy. The analysis relies on a recent methodology proposed by Duque and Rey (2008) whereintricate input-output linkages between industries are simplified using network analysis. In addition to other techniques for cluster identification available in the literature, this novel methodology allows us not only to classify each industry in a given cluster, but also to understand how industries are related to each other within their clusters. This methodology offers a conciliatory approach to two radically different views about the economic unit from which policy makers should design their strategies for resource allocation: Porter´s cluster strategyversus Hausmann´s industrial targeting.industry clusters, graph theory, inputoutput, impact analysis.