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The spatial division of labor in Nepal

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  • Fafchamps, Marcel
  • Shilpi, Forhad

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.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2845.

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Date of creation: 31 May 2002
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Handle: RePEc:wbk:wbrwps:2845

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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;

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