The concept of rural economy refers to the branch of economía that studies rural economies. These types of economies are those related to agricultural activities, to the study of agricultural enterprise mechanisms and to helping to define the rural-agricultural sector in the corresponding economic context.
For further information, rural economies include agricultural and non-agricultural industry; the study of economic growth, development and change in these areas; space distribution; the use of housing and non-housing land according to supply-demand; population migration ... In addition, it takes into account aspects such as finances related to the sector and government policies that may affect development, regulation and transportation.
It is worth mentioning that rural development has led to the development of the rural economy concept more frequently in recent decades. The irruption of technology and new forms of cultivation, movement or society have created a new economic system worth studying.
However, rural economies present a problem: they depend on primary agricultural production, so they do not enter into the development plans of developing countries. This is where the International Labor Organization (ILO) which indicates that a transformation is necessary in production systems to make them efficient and generate decent jobs in this regard.
And, with decent jobs, according to the ILO, they must be those that attract people to perform agricultural or livestock activities, with increasing profitability, entrepreneurial dynamism and taking advantage of the investments of the States in education to receive a return in sustainable development and in economic opportunities.