A study on the relationship between firm growth and industrial clusters in Tanzania

Description

In recent years, the significance of industrial clusters and discussions about the impact and implication of industrial clusters have become major economic topics. Industries impact the welfare of regional and national economies daily. Policies on industrial clustering have had a significant impact on innovation and employment levels and the growth of economies. However, this has come with significant challenges that will demand sound strategies in formulating development plans for different regions. This study was conducted to examine the impact of clustering on the growth of individual firms in an economy with the case of Tanzania under study. Specifically, it focuses on four key concerns. The first concern is how the employment levels differ across individual firms that are located inside the industrial clusters and across those located outside existing industrial clusters in terms of the level of growth and the pace of growth. Employment levels have been used as the most realistic indicator of the growth of firms as it ranks as the most effective for new and existing firms alongside amongst other indicators such as the growth of revenue, value of assets, and the market share.