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Sticky factors in the industrial relocation of a cluster: A case study of Zhili children's garments cluster in China
Authors:Zuhui Huang  Jia Lu  Huaping Sun  Jifei Hu  Yu Song
Institution:aCenter for Agricultural and Development (CARD), Zhejiang University, China;bSchool of Economics and Political Science, Hangzhou Normal University, China;cDepartment of International Trade, Jiangsu University, China;dSchool of Economic and Management, Zhejiang Sci-Tech University, China
Abstract:The traditional industrial relocation theories hold that there are industrial relocations between areas with different levels of economic development. However, we found a significant gap between the theory and reality of industrial relocation in Zhejiang province of China. To analyze this phenomenon, the paper explores reasons for the tardiness of industrial relocation on the basis of literature review and survey. Taking the children's garments industrial cluster in the Zhili town, as an example, the paper also analyzes the sticky factors affecting industrial relocation, such as labor costs, sunk costs, capital barriers, industrial cluster effect, social network and regional culture based on interviews and questionnaires.
Keywords:Industrial relocation  Industrial cluster  Sticky factor  Transaction costs  Sunk costs  Entrepreneurship
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