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Cities and Agricultural Development

Author

Listed:
  • Linda Steinhuebel-Rasheed

    (International Food Policy Research Institute, Cairo, Egypt)

  • Luc Christiaensen

    (World Bank Group, Paris, France)

  • Bart Minten

    (International Food Policy Research Institute, Vientiane, Laos)

  • Johan Swinnen

    (International Food Policy Research Institute, Washington, DC, USA)

  • Joachim Vandercasteelen

    (World Bank Group, Thimphu, Bhutan)

Abstract

In recent decades, rapid urbanization in low- and middle-income countries (LMICs) has significantly affected agrifood systems and agricultural development. Innovations in transportation, storage, and value chains, as well as the expansion of nonfarm sectors, have transformed rural communities and reshaped agricultural production patterns. This review revisits the evolving link between cities and agriculture in LMICs, drawing on key theoretical frameworks and recent empirical findings. Three major pathways determining the interaction between urban centers and agricultural development emerge. First, transportation costs and access to urban markets continue to influence agricultural decision-making. Second, changing consumer preferences following urbanization and growing integration into global agrifood value chains drive lasting changes in local farming systems. Third, the expansion of urban nonfarm labor markets is shifting labor away from farms, with uncertain consequences for agricultural development. As a result, the empirical evidence is often context specific.

Suggested Citation

  • Linda Steinhuebel-Rasheed & Luc Christiaensen & Bart Minten & Johan Swinnen & Joachim Vandercasteelen, 2025. "Cities and Agricultural Development," Annual Review of Resource Economics, Annual Reviews, vol. 17(1), pages 401-421, October.
  • Handle: RePEc:anr:reseco:v:17:y:2025:p:401-421
    DOI: 10.1146/annurev-resource-101623-104546
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    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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