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The Flowchart Model of Cluster Policy: The Automobile Industry Cluster in China

Discussion Papers

No.100

by KUCHIKI Akifumi
April 2007

ABSTRACT

This paper proposes a general model of the flowchart approach to industrial cluster policy and applies this model to Guangzhou’s automobile industry cluster. The flowchart approach to industrial cluster policy is an action plan for prioritizing policy measures in a time-ordered series. We reached the following two conclusions. First, we clarified the effects of Honda, Nissan, and Toyota on agglomeration in Guangzhou’s automobile industry cluster. Second, we established that local governments play a crucial role in successful industrial cluster policy, and that the mayor of the local government should be offered incentives in order to target industrial clustering and implement cluster policy.

Keywords: Prioritization of cluster policy, Linearization of policy measures, Flowchart model, Inductive method, Anchor firm, Capacity
JEL classification: G18, O18, R11

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