The Spatial Division of Labor in Nepal

Fafchamps, Marcel ; Shilpi, Forhad

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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 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.

Document type: Working paper
Place of Publication: Washington, D.C.
Date: 2002
Version: Secondary publication
Date Deposited: 27 May 2015
Number of Pages: 62
Faculties / Institutes: Miscellaneous > Individual person
DDC-classification: Economics
Controlled Keywords: Nepal, Beschäftigung, Räumliche Disparität
Uncontrolled Keywords: Nepal, Erwerbstätigkeit, Räumliche Disparität / Nepal, Employment, Spatial Disparity
Subject (classification): Economics
Countries/Regions: Nepal
Additional Information: © World Bank. https://openknowledge.worldbank.org/handle/10986/14796 License: CC BY 3.0 Unported