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The spatial division of labor in Nepal, Volume 1
Author:Fafchamps, Marcel; Shilpi, Forhad; Country:Nepal;
Date Stored:2002/07/26Document Date:2002/05/31
Document Type:Policy Research Working PaperSubTopics:Agricultural Knowledge and Information Systems; Environmental Economics & Policies; Housing & Human Habitats; Urban Housing and Land Settlements; National Urban Development Policies & Strategies; Crops and Crop Management Systems
Language:EnglishMajor Sector:Social Protection
Region:South AsiaReport Number:WPS2845
Sub Sectors:SECollection Title:Policy, Research working paper series ; no. WPS 2845
Volume No:1  

Summary: 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 division of 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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