Linkage to Dynamic Markets and Rural Territorial Development in Latin America

Abstract

Linkage to dynamic markets is a key factor in understanding why different rural territories in Latin America perform differently. This paper combines two conceptual frameworks (from the new economic geography and economic sociology) for an in-depth analysis of the mechanisms that operate in this linkage and to identify key factors that allow for inclusive economic development. This analysis considers three rural territories that exemplify market linkages frequently observed in Latin America, where, although high transaction costs and limited access to financial capital prevail, other types of capital (social, cultural, and human capital) available to rural dwellers can be mobilized.

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