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Knowledge Diffusion and Modernization of Rural Industrial Clusters: A Paper-manufacturing Village in Northern Vietnam

  • Kimura, Yuichi
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    This article tests the role of social learning in the modernization of a rural nonfarm industry, using data from a paper-manufacturing village that was transformed from a traditional handicraft industry into a modern industrial cluster. Knowledge diffusion through kinship networks is shown to have played a significant role in the dissemination of mechanized production by helping the followers to overcome subjective risk during the initial investment stage. The financial support through kinship networks also had a demonstrably positive impact on the diffusion of the technology, which removed financial constraints on the initial fixed investments.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X11000878
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    Article provided by Elsevier in its journal World Development.

    Volume (Year): 39 (2011)
    Issue (Month): 12 ()
    Pages: 2105-2118

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    Handle: RePEc:eee:wdevel:v:39:y:2011:i:12:p:2105-2118
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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