The Spatial Division of Labor in Nepal

  title={The Spatial Division of Labor in Nepal},
  author={Marcel Fafchamps},
This paper examines how economic activity and market participation are distributed across space. Applying a non-parametric von Thunen model to Nepalese data, we uncover a strong spatial division of labor. Non-farm employment is concentrated in and around cities while agricultural wage employment dominates villages located further away. Isolated villages revert to self-subsistence. Vegetable and cereal production for sale take place in the vicinity of urban centers while oilseeds and other… CONTINUE READING