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A New Perspective on Hawaii’s Economy: understanding the role of clusters

Posted September 12, 2017 | Categories: Hawaii's Economy, Bonham, Carl, Coffman, Makena, UHERO Reports

Clusters are regional concentrations of related industries that arise because firms can benefit from being geographically close to one another. Proximity lowers transportation costs and fosters knowledge and labor sharing. As a result, the spatial concentration of economic activity is often a defining characteristic of regions. To better understand Hawaii’s economy and prospects for growth, we document Hawaii’s economic clusters at the state and county level and make comparisons to other US counties with similar characteristics.

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