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

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  • Kimura, Yuichi

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.

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  • Kimura, Yuichi, 2011. "Knowledge Diffusion and Modernization of Rural Industrial Clusters: A Paper-manufacturing Village in Northern Vietnam," World Development, Elsevier, vol. 39(12), pages 2105-2118.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:12:p:2105-2118
    DOI: 10.1016/j.worlddev.2011.04.017
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    2. Harris, John, 2014. "The Messy Reality of Agglomeration Economies in Urban Informality: Evidence from Nairobi’s Handicraft Industry," World Development, Elsevier, vol. 61(C), pages 102-113.
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    4. Fu, Xiaolan & Mohnen, Pierre & Zanello, Giacomo, 2018. "Innovation and productivity in formal and informal firms in Ghana," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 315-325.
    5. Masaki Nakabayashi, 2017. "Honesty, Diligence and Skill: Risk Sharing and Specialization in the Kiryu Silk Weaving Cluster, Japan," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1401-1424, November.

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