ABSTRACT

In a national economic system, extensive, complicated, and close economic links exist among industries. In industrial clusters, industries with close economic links come into being. The complication and diversification of economic links among industries generates external economies, which are the bases of regional growth and development. When many industries with close economic links form industrial clusters with each other, it provides a favorable development environment for a regional self-support growth process. Regional economic activities can attract the inflow of production factors from outside regions so that new productive activities can be introduced, production chains can be extended, and multiplier effects of regional productive activities can be remarkably heightened. With further development of regional industrial clusters, multiplier effects become quite strong, and rapid economic growth process accompanies the change in economic structures.