Rural economics

[5] Rural spaces add new challenges for economic analysis that require an understanding of economic geography: for example understanding of size and spatial distribution of production and household units and interregional trade,[6] land use,[7] and how low population density effects government policies as to development, investment, regulation, and transportation.

Increasingly rural tourism, niche manufacturers, and recreation have replaced resource extraction and agriculture as dominant economic drivers.

Rural communities are suffering from colossal market failures as the national grids fall short of their demand for electricity.

[14] Electrification typically begins in cities and towns and gradually extends to rural areas, however, this process often runs into obstacles in developing nations.

If countries are able to overcome these obstacles and reach nationwide electrification, rural communities will be able to reap considerable amounts of economic and social development.

People can also move into town to seek higher wages, educational access and other urban amenities; examples of pull factors.

The mechanization of agriculture has reduced the need for manual labor, leading to economic pressures on some villages and prompting young people to migrate to urban areas.

In the United States, niche tourism programs such as wine tours, agritourism, and seasonal events are prominent in rural areas.

These tourism activities contribute to rural community development and provide economic benefits, including job creation and support for local businesses.

A rural development academy in Bogra , Bangladesh. Many government and non-governmental agencies invest in capacity building and opportunities for rural communities to gain greater access to economic opportunities.
This graph shows the world rural electrification rate along with the electrification growth rate 1990–2016 and synthesizes data from the World Bank. [ 15 ]
Population age comparison between rural Pocahontas County, Iowa , and urban Johnson County, Iowa , illustrating the flight of young female adults (red) to urban centers in Iowa [ 16 ]
Gustave Courbet depicted nineteenth century rural poverty in this painting.
Many parts of rural Africa, such as this community in Mozambique, experience rural poverty. This woman was given access to a bicycle through a rural development program through a Bicycle poverty reduction program. Access to affordable transportation has been a key part of gaining access to greater economic mobility in many parts of the world. For example, distributing bicycles was one of the key strategies used by China to reduce rural poverty in the 20th century. [ 20 ]
Tourists visiting a rural area in Paraná , Brazil.