Development strategies as articulated by international financial institutions and
bilateral donors appear to omit consideration of urban economies as drivers of
economic growth in developing and transition economies. This paper highlights that
omission and argues that donor assistance programmes and host government policies
should be oriented toward strengthening urban economies by fostering linkages among
industrial firms. A study of industrial firms in Yerevan, Armenia seems to indicate
linkages among Yerevan′s industrial firms are beginning to form and are
associated with growth in the Armenian economy. Policies to strengthen and deepen
those linkages should be encouraged.
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