Economic Blocs

Concept and Characteristics

Abstract

This research aims to explore the phenomenon of institutional clusters in the modern economy and their impact on economic growth and competitiveness. The main objective is to analyze how small economic units transform into giant entities through processes of consolidation, which manifest in forms such as competitive capitalism and monopoly capitalism. The findings indicate that large economic clusters enhance production capacity and achieve significant economic progress. These clusters also contribute to improving market competitiveness by enhancing product quality, reducing costs, and increasing profits, leading to widespread economic benefits. The movement of economic clusters began in the United States at the end of the 19th century and continued to influence the global economy into the 20th century.