Revisiting Rural Economic Structural Transformation from the Viewpoint of Regional Linkages

Abstract

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.