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...

An essential feature of the 'industrial district' is trust among individuals and firms within it. This paper focuses mainly on trust based on investments in building up a good reputation that is a 'personal capital' that can even substitute for collateral in obtaining credit. Informal credit,...