Revisiting Rural Economic Structural Transformation from the Viewpoint of Regional Linkages
DOI:
https://doi.org/10.17059/ekon.reg.2022-2-1Keywords:
rural structural transformation, rural-urban linkages, regional linkages, spatial flows, economic structure, rural areas, structural change, non-farm activities, REST, structural transformation mechanismAbstract
Regional studies, particularly in rural areas, have attracted great attention from scholars and policy-makers. However, almost all existing literature focused on the growth of these areas while giving little consideration to converting economic activities or economic structural transformation, which plays the main role in sustainable development. Additionally, the studies about economic structural transformation mainly mention the factors, which are changes inside certain economic areas and ignore the outside effects while any geographical area also has spatial relationships. To fill this gap, this study blends the economic structure and regional linkages theories to supply a comprehensive view of the relationship between inside and outside factors that influence rural structural transformation by using systematic reviews and meta-analysis methods. The study’s findings consolidate the importance of urban areas and regional linkages, especially spatial interaction, in rural economic structural transformation. More specifically, this study shows that the motivation for structural transformation of rural areas is emanated from urban areas and is transmitted through spatial flows, which are then absorbed in rural areas. The mechanisms through which the motivation affects rural economic structure are productivity, income, and agricultural land. Based on the review, the study lists several further research questions regarding empirical research of rural economic structural transformation through the relationship between rural and urban areas.
References
Adam, C., Bevan, D. & Gollin, D. (2018). Rural-Urban Linkages, Public Investment and Transport Costs: The Case of Tanzania. World Development, 109(C), 497–510.
Adger, W. N., Kelly, P. M., Winkels, A., Huy, L. Q. & Locke, C. (2002). Migration, remittances, livelihood trajectories, and social resilience. AMBIO: A Journal of the Human Environment, 31(4), 358–366.
Aggarwal, S., Giera, B., Jeong, D., Robinson, J. & Spearot, A. (2018). Market access, trade costs, and technology adoption: Evidence from northern Tanzania. Working Paper No. w25253. National Bureau of Economic Research.
Akkoyunlu, S. (2015). The Potential of Rural-Urban Linkages for Sustainable Development and Trade. International Journal of Sustainable Development & World Policy, 4(2), 20–40.
Asher, S. & Novosad, P. (2020). Rural roads and local economic development. American economic review, 110(3), 797–823.
Atkinson, D. (2014). Rural-Urban Linkages: South Africa Case Study. Document No. 125. Working Group: Development with Territorial Cohesion. Territorial Cohesion for Development Program. Rimisp, Santiago, Chile.
Balisacan, A. M., Mapa, D., Fuwa, N., Abad-Santos, C. & Piza, S. (2011). Addressing infrastructure constraints to the development of the rural non-farm sector: Implications for poverty and rural development. World Bank Report.
Barrett, C. B., Reardon, T. & Webb, P. (2001). Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. Food policy, 26(4), 315–331.
Berdegué, J. A., Proctor, F. J. & Cazzuffi, C. (2014). Inclusive Rural–Urban Linkages. Document No. 123. Working Group: Development with Territorial Cohesion. Territorial Cohesion for Development Program. Rimisp, Santiago, Chile.
Berdegué, J., Rosada, T. & Bebbington, A. (2014). The Rural Transformation. In: International Development: Ideas, Experience, and Prospects. Oxford University Press. Retrieved from: https://clck.ru/3RagYr (Date of access: 28.06.2020).
Boudeville, J. R. (1966). Problems of regional economic planning. Edinburgh: Edinburgh UP, 192.
Briones, R. M. (2018). Transformation and diversification of the rural economy in Asia. IFAD Research Series 20, 45.
Bustos, P., Caprettini, B. & Ponticelli, J. (2016). Agricultural productivity and structural transformation: Evidence from Brazil. American Economic Review, 106(6), 1320–1365.
Castle, E. N., Wu, J. & Weber, B. A. (2011). Place orientation and rural–urban interdependence. Applied Economic Perspectives and Policy, 33(2), 179–204.
Dasgupta, P., Morton, J. F., Dodman, D., Karapinar, B., Meza, F., Rivera-Ferre, M. G., … Vincent, K. E. (2014). Rural areas. In: C. B. Field, V. R. Barros, D. J. Dokken, K. J. Mach, M. D. Mastrandrea, T. E. Bilir, … L. L. White (Eds.), Climate Change 2014: Impacts, Adaptation, and Vulnerability; Part A: Global and Sectoral Aspects. Contribution of Working Group II to the Fifth Assessment Report of the IPCC (pp. 613–657). New York: Cambridge University Press.
Deichmann, U., Shilpi, F. & Vakis, R. (2009). Urban proximity, agricultural potential and rural non-farm employment: Evidence from Bangladesh. World Development, 37(3), 645–660.
Diao, X., Magalhaes, E. & Silver, J. (2019). Cities and rural transformation: A spatial analysis of rural livelihoods in Ghana. World Development, 121, 141–157.
Diao, X., McMillan, M. & Rodrik, D. (2019). The recent growth boom in developing economies: A structural-change perspective. In: The Palgrave Handbook of Development Economics (pp. 281–334). Palgrave Macmillan, Cham.
Dinkelman, T., Kumchulesi, G. & Mariotti, M. (2017). Labor migration, capital accumulation, and the structure of rural labor markets. Work. Pap., Univ. Notre Dame, IN Google Scholar Article Location.
Douglass, M. (1998). A regional network strategy for reciprocal rural-urban linkages: an agenda for policy research with reference to Indonesia. Third world planning review, 20(1), 1–33.
Eppler, U., Fritsche, U. R. & Laaks, S. (2015). Urban-rural linkages and global sustainable land use. Globalands Issue Paper, Berlin, 64.
European Commission. (2010). Investing in Europe’s Future, Fifth Report on Economic, Social and Territorial Cohesion. Brussels.
Evans, H. E. (1990). Rural-urban linkages and structural transformation. Report INU 71, Infrastructure and Urban Development Department, The World Bank, Washington DC.
FAO. (2017). The State of Food and Agriculture: Leveraging Food Systems for Inclusive Rural Transformation. 2017. Food and Agriculture Organization of the United Nations. Retrieved from: http://www.fao.org/3/a-I7658e.pdf (Date of access: 08.04.2020).
Friedman, J. (1966). Regional development policy: A case study of Venezuela. Cambridge: The MIT Press, 279.
Gebre, T. & Gebremedhin, B. (2019). The mutual benefits of promoting rural-urban interdependence through linked ecosystem services. Global Ecology and Conservation, 20, e00707.
Glaeser, E. L., Kallal, H. D., Scheinkman, J. A. & Shleifer, A. (1992). Growth in cities. Journal of political economy, 100(6), 1126–1152.
Gollin, D. (2018). Rural-Urban Linkages and Frictions. Oxford University. World Bank Urbanization Conference.
Gollin, D., Parente, S. & Rogerson, R. (2002). The role of agriculture in development. American economic review, 92(2), 160–164.
Guastella, G. & Pareglio, S. (2016). Sustainable Development of Rural Areas: Using Urban Patterns to Map the Agricultural Systems. Agriculture and Agricultural Science Procedia, 8, 88–98.
Habitat, U. N. (2017). Implementing the new urban agenda by strengthening urban-rural linkages. Leave No One and No Space Behind. Kenya: UN Habitat, 100.
Haggblade, S., Hazell, P. & Reardon, T. (2010). The rural non-farm economy: Prospects for growth and poverty reduction. World development, 38(10), 1429–1441.
Hatcher, C. (2017). Rural-urban linkages in the context of sustainable development and environmental protection. Global Land Outlook, Working Paper; UNCCD: Bonn, Germany, 25.
Hazell, P., Haggblade, S, & Reardon, T. (2007). Structural transformation of the rural nonfarm economy. In: Transforming the rural nonfarm economy: Opportunities and threats in the developing world (pp. 83–89). Johns Hopkins University Press, Baltimore
Herrendorf, B., Rogerson, R. & Valentinyi, A. (2014). Growth and structural transformation. In: Handbook of economic growth, Vol. 2. (pp. 855–941). Elsevier.
Hirschman, A. O. (1958). The Strategy of Economic Development. New Haven, CN: Yale University Press, 230.
Hirway, I. & Singh, U. B. (2017). Migration and Development: Rural-to-Urban Temporary Migration to Gujarat. In: Rural Labour Mobility in Times of Structural Transformation (pp. 269–297). Palgrave Macmillan, Singapore.
Hossain, M. (2004). Rural non-farm economy in Bangladesh: A view from household surveys. CPD Working Paper No. 40. Centre for Policy Dialogue (CPD).
Howard, E. (2013). Garden cities of to-morrow. Routledge, 170.
Jennings, S., Cottee, J., Curtis, T. & Miller, S. (2015). Food in an urbanised world: the role of city region food systems. Urban Agriculture Magazine, 29, 5–7.
Kuznets, S. (1973). Modern economic growth: findings and reflections. The American economic review, 63(3), 247–258.
Lerner, A. M. & Eakin, H. (2011). An obsolete dichotomy? Rethinking the rural–urban interface in terms of food security and production in the global south. The Geographical Journal, 177(4), 311–320.
McMillan, M. S. & Rodrik, D. (2011). Globalization, structural change and productivity growth. Working Paper No. w17143. National Bureau of Economic Research.
Mellor, J. W. (2017). Capital Formation and the Exchange Rate. In: Agricultural Development and Economic Transformation (pp. 61–71). Palgrave Macmillan, Cham.
Miller, C., Saroja, V. N. & Linder, C. (2013). ICT uses for inclusive agricultural value chains. Food and Agriculture Organization of the United Nations, Rome.
Myrdal, G. (1957). Economic Theory and Underdeveloped Regions. London: Duckworth, 168.
OECD. (2013). Rural-Urban Partnerships: An Integrated Approach to Economic Development. OECD Rural Policy Reviews, OECD Publishing, Paris.
Partridge, M. D., Rickman, D. S., Ali, K. & Olfert, M. R. (2008). Employment Growth in the American Urban Hierarchy: Long Live Distance. The BE Journal of Macroeconomics, 8(1), 1–38.
Partridge, M., Olfert, M. R. & Alasia, A. (2007). Canadian cities as regional engines of growth: agglomeration and amenities. Canadian Journal of Economics/Revue canadienne d’économique, 40(1), 39–68.
Perroux, F. (1955). A note on the notion of growth pole. Applied Economy, 1(2), 307–320.
Redding, S. & Sturm, D. M. (2008). The costs of remoteness: Evidence from German division and reunifification. American Economic Review, 98(5), 1766–1797.
Reddy, D. N. (2017). Labor and Employment in the Emerging Rural-Urban Continuum in India: Toward a Cohesive Policy. In: Rural Labour Mobility in Times of Structural Transformation (pp. 35–64). Palgrave Macmillan, Singapore.
Renkow, M. (2007). Cities, towns, and the rural nonfarm economy. In: Transforming the rural nonfarm economy: Opportunities and threats in the developing world (pp. 183–198). Johns Hopkins University Press, Baltimore.
Rosegrant, M. & Hazell, P. B. (2000). Transforming the rural Asian economy: The unfinished revolution. Vol. 1. Hong Kong: Oxford University Press, 513.
Saha, P. & Verick, S. (2017). Casualization and shift of rural workers to non-farm activities. In: Rural labour mobility in times of structural transformation (pp. 127–150). Palgrave Macmillan, Singapore.
Sen, K. (2019). Structural Transformation around the World: Patterns and Drivers. Asian Development Review, 36(2), 1–31.
Shi, X. (2018). Heterogeneous effects of rural-urban migration on agricultural productivity: Evidence from China. China Agricultural Economic Review, 10(3), 482–497.
Sietchiping, R., Kago, J., Zhang, X. Q., Augustinus, C. & Tuts, R. (2014). Role of urban-rural linkages in promoting sustainable urbanization. Environment and Urbanization Asia, 5(2), 219–234.
Smętkowski, M. (2015). Spatial patterns of regional economic development in Central and Eastern European countries. Geographia Polonica, 88(4), 539–556.
Srivastava, N. & Shaw, R. (2016). Enhancing City Resilience through Urban-Rural Linkages. In: Urban Disasters and Resilience in Asia (pp. 113–122). Butterworth-Heinemann.
Syed, S. & Miyazako, M. (Eds.). (2013). Promoting investment in agriculture for increased production and productivity. Rome, Italy: CABI, 88.
Tacoli, C. (2003). The links between urban and rural development. Environment and Urbanization, 15(1), 3–12.
Tiffen, M. (2003). Transition in sub-Saharan Africa: agriculture, urbanization and income growth. World development, 31(8), 1343–1366.
Truong Cong, B. (2021). The impact of metropolises’ characteristics on provincial economic structure transformation: evidence from Vietnam. Cogent Economics & Finance, 9(1), 1937849.
von Braun, J. (2007). Rural-urban linkages for growth, employment, and poverty reduction. In: International Food Policy Research Institute, Washington, DC, USA. Ethiopian Economic Association Fifth International Conference on the Ethiopian Economy, June 7–9, 2007 (pp. 1–21).
Wiggins, S., Sabates-Wheeler, R. & Yaro, J. (2018). Rural Transitions, Economies and Rural-Urban Links. Working Paper 011, APRA, Future Agricultures Consortium. Retrieved from: https://opendocs.ids.ac.uk/opendocs/handle/123456789/13818 (Date of access: 03.05.2020).
Woods, M. & Heley, J. (2017). Conceptualisation of Rural-Urban Relations and Synergies. Aberystwyth University.
