THE POTENTIAL OF RURAL TO URBAN LINKAGES FOR SUSTAINABLE DEVELOPMENT AND TRADE

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Rural–urban linkages play a crucial role in the generation of income, employment and wealth. Yet, for various reasons the importance of such linkages is not recognized and thus ignored in national economic and trade policies.The present article investigates infrastructure problems, institutional constraints and trade barriers that tend to discourage linkages between rural and urban regions and thus prevent a process of rural empowerment and economic development.

The findings of our review indicate that clustering rural and urban areas into regional planning units may create the necessary enabling environment for extended trade networks and knowledge exchange between the city and the countryside. As such, stronger rural–urban linkages could also play a crucial role in poverty reduction in developing countries.Agricultural produce is consumed in small urban centres, in addition to being transported tonational and international markets. The availability of physical infrastructure and the affordabilityof transport are crucial to connecting producer areas to local urban centres as well as to connectinglocal urban centres to national and international urban centres. Indeed, Dorosh and James (2013)find stronger linkages between agricultural production and small towns than cities. Thepositive impacts of small towns occur through market provision of agricultural products and inputs, and service of education, credit, health, and administrativefacilities. Furthermore, the expansion of markets for local produce.

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