The Spatial Division of Labor in Nepal
AbstractThis paper examines how economic activity and market participation are distributed across space. Applying a non-parametric von Th�nen model to Nepalese data, we uncover a strong spatial division of labor. Non-farm employment is heavily concentrated in and around cities while agricultural wage employment dominates villages located further away. Vegetable production take place primarily in the vicinity of urban centers while paddy and other commercial crops are more important at intermediate distances. Isolated villages revert to self-subsistence. These findings are consistent with the von Th�nen model of concentric specialization, except that they also show the importance of city size. Spatial division of labor is closely related to asset and human capital accumulation, especially at the local level. We discuss the policy implications for road construction and the placement of rural development projects.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 44.
Date of creation: 01 Dec 2000
Date of revision:
economic geography; market participation; spatial specialization;
Other versions of this item:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
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