Service-Led Rural Development: Definitions, Theories, and Empirical Evidence

Abstract

Two opposing views of service-led development contend, on the one hand, that services can be a propulsive force in rural economic development and, on the other, that services are neither independent of, nor a replacement for, older forms of rural industrialization such as agriculture, mining, and manufacturing. Both views fail to account for the dualistic nature of rural services growth, which does not mirror the developmental experience commonly associated with services in the nation's cities. This article reviews the literature on services and economic development, summarizes definitions, discusses national growth of rural services and recent trends, examines models of spatial distribution of services, and identifies gaps in existing knowledge.