Abstract

Cluster development policies have become increasingly popular as a tool for promoting development in developing countries. However, impact evaluations of cluster policies are scarce in the literature. This paper analyzes the impact of a tourism cluster policy in the region of Colonia, Uruguay, applying a synthetic control method. This method of identifying the counterfactual is especially useful in comparative case studies where there are a limited number of control units. The estimations show a positive impact of the cluster program on the inflow of international tourists to Colonia of 30% in the period 2008–2015; however, no significant impact on total expenditure was found.

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