Place Orientation and Rural-Urban Interdependence

An entire economic system cannot be understood unless there is reliable knowledge about both rural and urban sectors, including their interactions. In particular, there are two anomalies that cannot be rationalized satisfactorily by existing economic theory: the decentralizing economic activities that proceed from the city to the countryside; and the unequal per capita economic rewards between rural and urban people over time. This article presents empirical evidence on the two anomalies, proposes an integrated framework of rural-urban space, discusses the historic interdependence of rural and urban places from the perspective of the integrated framework, and looks at the implications for research and public policy.