Otsuka, KeijiroSonobe, Tetsushi2012-03-192012-03-192011-06-01https://hdl.handle.net/10986/3467The need to construct an effective strategy for industrial development in low-income countries has been largely ignored by development economists because industrial policies have failed in many developing countries. This does not imply, however, that industrial development cannot be promoted. This paper attempts to synthesize the conventional wisdom in development economics with recent advancements in various fields of economics (such as theories of endogenous growth and agglomeration economies) to provide a useful framework to design a strategy for industrial development, which consists of investments in managerial human capital followed by the provision of credit and the construction of industrial zones.CC BY 3.0 IGOACCESS TO FINANCEACCESS TO FINANCIAL SERVICESACCOUNTINGADJUSTMENT POLICIESADVISERSAGRICULTUREALLOCATIONASYMMETRIC INFORMATIONBORROWINGBUSINESS CONSULTANTSBUSINESS CYCLEBUSINESS TRAININGCAPITAL ACCUMULATIONCAPITAL FORMATIONCAPITAL INVESTMENTCAPITALISMCASH FLOWSCITIESCOLLABORATIONCOMMUNICATION NETWORKSCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPARATIVE ANALYSISCOMPARATIVE ECONOMICSCOMPETITIVE MARKET ENVIRONMENTSCONSUMERSCORRUPTIONCREDIT ACCESSCREDIT ANALYSISCREDIT CONSTRAINTSCREDIT MARKETSCULTURAL CHANGEDEVELOPMENT BANKSDEVELOPMENT ECONOMICSDEVELOPMENT POLICIESDEVELOPMENT POLICYDEVELOPMENT STRATEGYDIVISION OF LABORECONOMIC DEVELOPMENTECONOMIC GEOGRAPHYECONOMIC GROWTHECONOMIC HISTORYECONOMIC RESEARCHEMPLOYMENTENDOWMENTSENGINEERSENTERPRISE DEVELOPMENTENTREPRENEURENTREPRENEURSEQUAL ACCESSEXCHANGE CONTROLEXTERNALITIESFACILITATIONFAMILIESFEMALE ENTREPRENEURSHIPFINANCESFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL LITERACYFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL SECTORFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN FIRMSFORMAL CREDITSFREE PRESSGOVERNMENT POLICIESGROWTH THEORYHOUSEHOLDSHUMAN CAPITALINCOMEINCREASING RETURNSINDUSTRIAL DEVELOPMENTINDUSTRIAL ECONOMIESINDUSTRIALIZATIONINNOVATIONINPUT PRICESINTERNATIONAL BANKINTERNATIONAL TRADEINVENTIONSINVENTORYLABOR MANAGEMENTLABOR MARKETSLABOR PRODUCTIVITYLACK OF CREDITLEARNINGLENDERSLITERACYMARGINAL PRODUCTMARKET FAILURESMERGERSNEW BUSINESSNEWLY INDUSTRIALIZED COUNTRIESPER CAPITA INCOMEPOLITICAL ECONOMYPRIVATE SECTORPRODUCTIVITYPROFITABILITYPROPERTY RIGHTSPROVISION OF CREDITPUBLIC GOODSRATES OF RETURNRELATIONAL CONTRACTINGSCALE EFFECTSEARCH COSTSSKILLED LABORSKILLED WORKERSSMALL ENTERPRISESSOCIAL CAPITALSOCIAL INFRASTRUCTURESPECIALIZATIONSTART-UPSTRUCTURAL CHANGESUPPLIERSTAXTECHNICIANSTECHNOLOGY TRANSFERTERM CREDITTOTAL OUTPUTTRADE CREDITTRAINING PROGRAMSTRANSACTION COSTSURBAN DEVELOPMENTVENTURE CAPITALVILLAGEWEALTHWEALTH OF NATIONSWorld Bank10.1596/1813-9450-5703