Sticky factors in the industrial relocation of a cluster: A case study of Zhili children's garments cluster in 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.