Abstract
Farming has been regarded as the basic sector of rural economies. As a major source of both shortrun instability and long-run structural change, it has been the focus of many policy initiatives. However it is well recognized that sectoral interdependences mean that variation in the basic sector will spread to other sectors of the rural economy and that changes in non-farm sectors also affect the farm sector. Analysis of the economic structure of rural economies and of significant linkages among key sectors is needed to be able to direct policies that are effective in meeting rural economy objectives in terms of economic stabilization, job provision, the use and provision of infrastructure and services, and so on. The objectives and knowledge of intersectoral linkages will most likely indicate that the traditional policy response of providing support to the farm sector and relying on ‘trickle down’ effects to solve the rest of the problems will be inadequate.
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