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Cambridge Journal of Economics 27:501-522 (2003)
Copyright © 2003 Cambridge Political Economy Society

Article

Exit, voice and the evolution of industrial districts: the case of the post-World War II economic development of Prato

Gabi Dei Ottati*

*Department of Economics, University of Florence, Italy.

Address for correspondence: Università degli studi di Firenze, Dipartimento di Scienze Economiche, Via Curtatone, 1, 50123 Firenze, Italy; email: ottati{at}cce.unifi.it

Abstract

In this paper, the Hirschmanian exit–voice approach is applied to the development of industrial districts. The analysis of the post-World War II evolution of the Prato district helps to make explicit how the industrial district competitive advantage can be reproduced over time during periods of regular development. In addition, the exit–voice polarity helps in understanding also the specific difficulties that industrial districts face in responding to major changes in their external circumstances. In particular, the case examined sheds light on the role that conscious collective action has in permitting the successful adjustment of a local system.

Key Words: Industrial districts • Exit–voice approach • Economic and social development


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