Alternative Spatial Structure for Sustainable Rural Economy

Abstract

In developed countries with declining population growth, sustainable rural economic growth is a problematic issue that is made more difficult by severe international cost-saving competition. Well-organized spatial and economic systems may play a key role in solving this specific problem. These systems can be achieved by spatial reorganization and agglomeration economies in less congested rural areas. However, rural areas typically have lower levels of social welfare partly as a result of the limited variety of goods and services, which further reduces centripetal forces on population and economic activity. Accordingly, in rural areas, it may be important to organize a spatial structure that sustains the distribution of a variety of goods and services in insufficient economies of scale and scope by coordinating a common local central place as an interregional spatial framework. This article examines a location model for forming an intermediate hierarchical center to maintain both efficiency and equity for economic agents in rural areas.