Abstract:
“Cluster” means purely a grouping. Industries and firms are
geographically concentrated as clusters. Location behaviour of firms of a
particular industry tends to be clustered together in space as clustering
enables them to reach higher economic performance. Alfred Marshall
defined the economic benefits gained through the clustered industry
as agglomeration effects. Agglomeration economies are the benefits
that generate when industries, firms and people locate together in
close vicinity to one another in cities. The researchers have discussed
agglomeration economies in different contexts. However there was a
knowledge deficiency about this in Sri Lanka.
This research was based on the theory of agglomeration economies (AE)
that aims to study way of functioning sources of agglomeration
economies such as sharing, matching and learning in Moratumulla
timber industrial cluster. The literature review was studied the theory and
identified the indicators to study the sources of agglomeration economies.
Moreover the identified indicators were finalized through the professional
discussions. Further Questionnaire survey, interviews and observation
were used for data collection in order to study the sources of
agglomeration economies of Moratumulla. The research was based on the
qualitative analysis. Therefore content analysis, network analysis and
mapping techniques were used as data analysis of this study.
The empirical result of analysis in Moratumulla timber industrial cluster has
identified sharing the intermediate input supplies, workers and consumers
and a large pool of labor also facilitated the matching. However due to the
trend of reduction skilled carpenters’ labor pool in Moratumulla is leading
to mismatching. Further Moratumulla can be identified as a center for
learning carpentry and act as a workers training school due to the
generation of knowledge and diffusion among others through accumulation
of knowledge. However Moratumulla timber industry cluster have
characteristics of urbanization economies as it goes beyond the
localization boundary.
Citation:
Anuradha, C., & Bandusena, P., (2016) .A study of Moratumulla timber cluster: Agglomeration theory. In J. Wijesundara, & R. Dayaratne,(Eds.). Proceedings of the International Conference on Cities, People and Places ICCPP 2016. (pp. 277-294). Department of Architecture, University of Moratuwa.