Cities and Specialisation: Evidence from South Asia

28 Pages Posted: 2 Apr 2005

See all articles by Marcel Fafchamps

Marcel Fafchamps

Stanford University - Freeman Spogli Institute for International Studies

Forhad Shilpi

World Bank - Development Research Group (DECRG)

Abstract

Using survey data from Nepal, we examine the relationship between proximity to urban centres and the organisation of labour. We show that wards located in and near cities have more diversified and more market oriented activities. This suggests the presence of returns to market specialisation in cities. We also find some evidence of returns to hierarchical specialisation. These effects are felt up to four hours of travel time from large cities. Urbanisation is associated with lower female labour market participation and with a more pronounced specialisation of women either in market-related activities or in strictly home-based chores.

Suggested Citation

Fafchamps, Marcel and Shilpi, Forhad, Cities and Specialisation: Evidence from South Asia. Economic Journal, Vol. 115, No. 503, pp. 477-504, April 2005. Available at SSRN: https://ssrn.com/abstract=696972

Marcel Fafchamps (Contact Author)

Stanford University - Freeman Spogli Institute for International Studies ( email )

Stanford, CA 94305
United States

Forhad Shilpi

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-7476 (Phone)
202-522-1151 (Fax)

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