The Spatial Division of Labor in Nepal.

This article examines how economic activity and market participation are distributed across space. Applying a nonparametric von Thuumlnen model to Nepalese data, we uncover a strong spatial division of labour. Non-farm employment is concentrated in and around cities while agricultural wage employmen...

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Detalles Bibliográficos
Main Authors: Fafchamps, M, Shilpi, F
Formato: Journal article
Idioma:English
Publicado: Routledge 2006
Descripción
Summary:This article examines how economic activity and market participation are distributed across space. Applying a nonparametric von Thuumlnen model to Nepalese data, we uncover a strong spatial division of labour. Non-farm employment is concentrated in and around cities while agricultural wage employment dominates villages located further away. Vegetables are produced near urban centres; paddy and commercial crops are more important at intermediate distances. Isolated villages revert to self-subsistence. Findings are consistent with the von Thuumlnen model of concentric specialisation, corrected to account for city size. Spatial division of labour is closely related to factor endowments and household characteristics, especially at the local level.