Knowledge Diffusion and Modernization of Rural Industrial Clusters: A Paper-manufacturing Village in Northern Vietnam

Yuichi Kimura

World Development, 2011, vol. 39, issue 12, 2105-2118

Abstract: This article tests the role of social learning in the modernization of a rural nonfarm industry, using data from a paper-manufacturing village that was transformed from a traditional handicraft industry into a modern industrial cluster. Knowledge diffusion through kinship networks is shown to have played a significant role in the dissemination of mechanized production by helping the followers to overcome subjective risk during the initial investment stage. The financial support through kinship networks also had a demonstrably positive impact on the diffusion of the technology, which removed financial constraints on the initial fixed investments.

Keywords: technology diffusion; social learning; rural nonfarm sector; Asia; Vietnam (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:39:y:2011:i:12:p:2105-2118

DOI: 10.1016/j.worlddev.2011.04.017

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