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The Effects of Industrial Clusters on the Poverty Rate

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  • Christopher S. Fowler
  • Rachel Garshick Kleit
Abstract
Industrial clusters are widely understood as a worthwhile target of local economic development resources. Nevertheless, most of the work on cluster development has asserted benefits that accrue to a regional economy as a whole, with little or no focus on specific links between clusters and poverty alleviation. This article seeks to understand the degree to which economic clusters are associated with lower poverty rates. Specifically, using spatial regression analysis techniques, we examine patterns that link clusters to poverty rates while controlling for the presence of other factors that shape the distribution of poverty in the United States. When controlling for other economic and demographic factors in a multivariate framework, the presence of industrial clusters is associated with lower poverty rates. Moreover, regions with a higher share of employment in clusters, and with that employment dispersed across many industries within the same cluster, fare even better than those where employment is concentrated in a single industry. Furthermore, while there is evidence that particular clusters are associated with significantly altered poverty rates, not all of these associations are beneficial.

Suggested Citation

  • Christopher S. Fowler & Rachel Garshick Kleit, 2014. "The Effects of Industrial Clusters on the Poverty Rate," Economic Geography, Clark University, vol. 90(2), pages 129-154, April.
    • Handle: RePEc:bla:ecgeog:v:90:y:2014:i:2:p:129-154
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    File URL: http://hdl.handle.net/10.1111/ecge.12038
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    References listed on IDEAS

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    Cited by:

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    2. Neil Lee & Andrés Rodríguez-Pose, 2021. "Entrepreneurship and the fight against poverty in US cities," Environment and Planning A, , vol. 53(1), pages 31-52, February.
    3. Christopher S Fowler & Leif Jensen, 2020. "Bridging the gap between geographic concept and the data we have: The case of labor markets in the USA," Environment and Planning A, , vol. 52(7), pages 1395-1414, October.
    4. Na Zhang & Xiangxiang Zhang & Peng Li, 2020. "The Temporal and Spatial Differentiation Characteristics of Three Industry Convergence Development in Deeply Impoverished Areas in China," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    5. Colleen K. Chrisinger & Christopher S. Fowler & Rachel Garshick Kleit, 2015. "Industry Clusters and Employment Outcomes in Washington State," Economic Development Quarterly, , vol. 29(3), pages 199-210, August.
    6. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    7. Xiaoning Li & Lingling Li, 2021. "Evaluation of China’s Targeted Poverty Alleviation Policies: A Decomposition Analysis Based on the Poverty Reduction Effects," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    8. Neil Lee & Paul Sissons, 2016. "Inclusive growth? The relationship between economic growth and poverty in British cities," Environment and Planning A, , vol. 48(11), pages 2317-2339, November.
    9. Claudio Berardino & Giuseppe Mauro & Davide Quaglione & Alessandro Sarra, 2016. "Industrial Districts and Socio-economic Well-Being: An Investigation on the Italian Provinces Disparities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 337-363, October.
    10. Angel Alcantara & Stephanie M. Brewer & James J. Jozefowicz, 2023. "Rural-Urban Differences in Poverty: An Analysis of Pennsylvania Counties," International Journal of Economics and Financial Issues, Econjournals, vol. 13(5), pages 1-9, September.
    11. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    12. Junqian Wu & Xiaoqian Liu & Jianqing Ruan & Xiulin Qi & Chang’an Wang & Dan Fan, 2021. "Space Power in Inclusive Development: Industrial Clusters and Rural Anti-Poverty," IJERPH, MDPI, vol. 18(20), pages 1-13, October.

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