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Overcoming urban-rural imbalances: the role of cooperatives and social enterprises

Author

Listed:
  • Andrea SALUSTRI

    () (Fondazione Economia-Università Tor Vergata, Roma, Italy)

  • Michele MOSCA

    () (Università Federico II Napoli, Napoli, Italy)

  • Federica VIGANÒ

    () (Libera Università di Bolzano - Free University Bozen - Freie Universität Bozen, Brixen-Bressanone, Italy)

Abstract

The paper introduces a theoretical model to show how in a spatial framework characterized by urban-rural imbalances, the production of goods and services decreases moving from urban to rural areas. Specifically in rural and peripheral areas, the market and the public sector might supply an insufficient level of goods and services due to higher distance costs and lack of financial resources. Cooperatives and nonprofit organizations, i.e. social enterprises, are able to overcome distance costs and therefore spatial inequalities, by developing a productive and distributive function in marginalized areas, ensuring a fair and equal treatment among residents. Moreover, cooperatives and nonprofit organizations endorse the inclusiveness of the labor market, and raise peoples’ intrinsic motivation.

Suggested Citation

  • Andrea SALUSTRI & Michele MOSCA & Federica VIGANÒ, 2015. "Overcoming urban-rural imbalances: the role of cooperatives and social enterprises," CIRIEC Working Papers 1512, CIRIEC - Université de Liège.
  • Handle: RePEc:crc:wpaper:1512
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    cooperative economics; nonprofit institutions and social enterprises; urban-rural development; size and spatial distributions of regional economic activity;

    JEL classification:

    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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