Toward an Economics of the Rural Third Sector

International Journal of Agricultural Resources, Governance, and Ecology, Vol.8, No.5-6, pp. 439-456, 2009

19 Pages Posted: 5 Apr 2010

See all articles by Constantine N. Iliopoulos

Constantine N. Iliopoulos

Agricultural Economics Research Institute; Agricultural Economics Research Institute

Vladislav L. Valentinov

Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Date Written: 2009

Abstract

Third sector organizations play a prominent role in rural development. Yet, such organizations have been largely neglected by existing economic research. This paper examines the potential role of standard theories of the third sector and collective action in explaining the motivations to form such organizations in rural settings. In doing so the paper outlines a research program on the economic theory of the rural third sector. It is argued that some rural third sector organizations emerge for reasons emanating from unique aspects of agriculture and rurality. Some of these reasons are related to rural areas’ characteristics that reduce the return on for-profit firms’ investment. Other reasons emerge from the need to overcome the organizational disadvantages of small-scale family farms, and the call for maintaining the balanced multifunctional character of agriculture. Illustrative examples from three European countries provide preliminary support to our arguments.

Keywords: Rurality, agriculture, governance, third sector, rural development, nonprofit sector

JEL Classification: L31, 013

Suggested Citation

Iliopoulos, Constantine N. and Valentinov, Vladislav L., Toward an Economics of the Rural Third Sector (2009). International Journal of Agricultural Resources, Governance, and Ecology, Vol.8, No.5-6, pp. 439-456, 2009, Available at SSRN: https://ssrn.com/abstract=1582920

Constantine N. Iliopoulos (Contact Author)

Agricultural Economics Research Institute ( email )

Terma Alkmanos Street
ATHENS, 11528
Greece
++30-210-275-5086 (Phone)

HOME PAGE: http://www.agreri.gr

Agricultural Economics Research Institute ( email )

Terma Alkmanos Street
Athens, 15235
Greece

HOME PAGE: http://www.agreri.gr

Vladislav L. Valentinov

Leibniz Institute of Agricultural Development in Transition Economies (IAMO) ( email )

Theodor-Lieser-Str.2
Halle, 06120
Germany

HOME PAGE: http://www.iamo.de

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