The Informal Economy in the New Rural Economy

The research proposes to model the way households and their assets move back and forth between the informal rural economy and the formal economy, particularly financial equity, entrepreneurs and workers. Several hypotheses are tested to establish understanding about the functions of the informal economy in the co-evolution of rural and urban economies. This work should lead to strategic options for local rural economies to thrive within a global competitiveness framework which otherwise could marginalize them irreversibly. The research questions are posed in the context of globalization, deteriorating rural demographics, isolation from immigration and market frameworks for labour, finance and uncertainty/risk.