The spatial division of labor in Nepal

Marcel Fafchamps and Forhad Shilpi

No 2845, Policy Research Working Paper Series from The World Bank

Abstract: the authors examine how economic activity and market participation are distributed across space. Applying a nonparametric von Thunen model to Nepalese data, the authors uncover a strong spatial divisionof labor. Nonfarm employment is concentrated in and around cities, while agricultural wage employment dominates villages located further away. Vegetables are produced near urban centers. Paddy and commercial crops are more important at intermediate distances. Isolated villages revert to self-subsistence. The findings of the study are consistent with the von Thunen model of concentric specialization, corrected to account for city size. Spatial division of labor is closely related to factor endowments and household characteristics, especially at the local level.

Keywords: Environmental Economics&Policies; Housing&Human Habitats; Urban Housing and Land Settlements; Agricultural Knowledge&Information Systems; National Urban Development Policies&Strategies; Environmental Economics&Policies; Housing&Human Habitats; Urban Housing and Land Settlements; National Urban Development Policies&Strategies; Crops&Crop Management Systems (search for similar items in EconPapers)
Date: 2002-05-31
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Citations: View citations in EconPapers (24)

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Journal Article: The spatial division of labour in Nepal (2003)
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