Sustainable rural economies, evolutionary dynamics and regional policy

The sustainability of rural economies that are closely tied to agricultural industries has been the subject of considerable academic scrutiny over the past two decades. The combination of increasing global competition, market liberalisation and socio-technical transformations have resulted in significant adjustments to both the structure and functioning of rural economies. Specifically, the cost-price squeeze facing farmers has contributed to processes of farm amalgamation and expansion, the substitution of capital for labour, farmer and farm worker outmigration, and the concomitant contraction of local service economies. All of this has consistently raised questions about the resilience and long-term sustainability of rural localities.