The Position of Group Theory pertaining to Economic Expansion: Does Porter’s Competitive Diamond Fail to Clarify Dubai’s Monetary Cluster? Dissertation

The Role of Cluster Theory for Financial Development: Truly does Porter's Competitive Diamond Do not Explain Dubai's Financial Cluster?

THE ROLE OF CLUSTER THEORY FOR ECONOMICAL DEVELOPMENT: TRULY DOES PORTER'S COMPETITIVE DIAMOND DO NOT EXPLAIN DUBAI'S FINANCIAL CLUSTER?

Klaus U. Zumbach

A Thesis Published to the Graduate student College of Bowling Green State University in partially fulfilling in the requirements intended for the degree of

MASTER OF ARTS August 2010 Committee: Doctor Michael C. Carroll, Advisor Dr . Kevin J. Quinn

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В© 2010 Klaus Ulrich Zumbach All Privileges Reserved

iii ABSTRACT Doctor Michael C. Carroll, Consultant The current financial crisis has had significant global influence. Even Dubai, with its regular high progress rates can be not not impacted by the states. Surprisingly, Dubai's hit was delayed but nonetheless with the complete impact in the crisis. This kind of study investigates the case with the development of Dubai's financial cluster and determines which of its problems are self-induced and which can be explained by Porter's (1998) competitive gemstone. With support of the existing literature given by Krugman (1991), Sölvell ain al. (2003), and Weber (1929) as well as the examination of three financial and IT groupings, it was likely to develop eight characteristics essential for the success of cluster formation that may have decreased the likelihood of an economic failure. The model of eight characteristics is a comparison to Porter's (1998) competitive precious stone which was utilized aggressively through Dubai's group initiative. Subsequently, the nine characteristics exposed significant weak points of Porter's diamond explaining Dubai's economical problems as an appearing cluster. This paper looks for to explain the existing economic situation of Dubai in combination with Porter's competitive diamond idea.

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" My grandfather rode a camel, my father rode a camel, I actually drive a Mercedes, my personal son drives a Property Rover, his son will certainly drive a Land Rover, but his son is going to ride a camel. ” (Sheikh Rashid, 1977)

" Change gives opportunities. Alternatively, change can be confusing. ” (Porter, 2001)

" I have put in my entire professional lifestyle as an international economist considering and writing about economic location, without being aware about it. " (Krugman, 1991)

v ACKNOWLEDGEMENTS

I would like to express my honor to those who were responsible for the composition over the entire thesis process:

To Dr . Michael Carroll and Dr . Kevin Quinn for support, guidance, and support during the complete writing procedure. Their curiosity and tips made this task very exceptional to me. To Dayna Herrington who urged me to improve my composing and was a great support in the collection of this thesis. To my children, friends, and members from the German-American Night clubs, who supported me in the experience to study in the United States by Bowling Green State University.

Thanks and Danke!

vi TABLE OF CONTENTS Web page INTRODUCTION................................................................................................................ Definition of a cluster................................................................................................ CHAPTER A SINGLE. LITERATURE REVIEW....................................................................... Michael Elizabeth. Porter plus the competitive diamond....................................................... Cluster projects: Sölvell, Lindquist, and Ketels (2003)......................................... Position theory by simply Weber (1929)............................................................................. Geography and trade by simply Krugman (1991)................................................................. Summary............................................................................................................................................................................ 1 2 5 4 almost 8 11 15 19 20 20 twenty 21 22 22 22 23

PART TWO. THE SIX GROUPINGS IT group

...........................................................................................................

Silicon Valley...

References: 57

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