INDUSTRIAL CLUSTERS AND INDUSTRIALISATION IN NIGERIA: A Micro-Assessment of the Nnewi Automotive Component Industrial Cluster, Anambra State

Abstract: The Nigerian industrial sector performance has remained far from impressive despite efforts to advance it. Industrial clusters have however thrived in the face of deindustrialisation in the country. This study probes the link between cluster-based policy and industrialisation adopting Nnewi Automotive Component Industrial Cluster as the case study. A sample of 195 firms drawn from manufacturing, trade and services firms in the cluster were utilised. In addition to the descriptive analysis, micro-level cluster information identified from literature was estimated using binary and ordinal logistics regression techniques. Findings identify significant determinants of internationalisation, collaboration and innovation in the cluster that have guaranteed its collective efficiency and sustenance. The study posits that the cluster concept is capable of transforming the fortunes of the sector if properly mainstreamed into industrial policy.

JEL Classification: L14, L22, L60, O14
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