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Specialized markets and Chinese industrial clusters: The experience of Zhejiang Province Good morning, ladies and gentlement. My name is Nancy. I’m from the university of Florence, Italy. I am very pleased to be here to join this conference. The topic of my presentation is Specialized markets and Chinese industrial clusters: The experience of Zhejiang Province. My presentation will include these seven parts: 1.Introduction The economic literature on industrial districts and clusters emphasizes the economic advantages that result from the close proximity of the different firms that are involved in the various stages of production. However, little research has focused on the role of specialized markets. In examining the case studies of four clusters included within the Zhejiang model, this paper highlights the interaction between specialized markets and industrial clusters. The fieldwork for this paper focused on examining high-growth localities of Zhejiang Province, in both well-known and uninvestigated industrial areas, identifying economic development patterns at the provincial and sub-provincial level, and defining these development patterns inner foundations and external influences. A multidisciplinary approach was adopted, that considered the growth of market relationships and the transition under an institutional, social, and economic perspective. 2.Theoretical background on specialized markets and industrial clusters We examine several schools of economic thought on the formation of market frameworks and use these concepts to determine the pre-reform rural roots of those frameworks. Empirical research on the relationships between Chinese specialized markets and local industrial clusters has a strong basis in concepts derived from the literature on industrial districts. The industrial cluster is conceived as a set of firms in close geographical proximity to one another that form a system based on contractual ties. The study of the growth of m