One of the main challenges facing researchers
trying to understand the urban-rural shift
has been to develop a conceptual framework
capable of accommodating such empirical
diversity. Existing perspectives have tended to
fall into two main groups. First, during the
1980s, a number of theories were put forward
which each emphasised one particular aspect
of the rural environment in their respective
readings of the superior performance of rural
manufacturing enterprises compared with their
urban rivals (see North 1998, for a comprehensive
review). For example, in their Production
Cost Hypothesis, Tyler et al. (1988) focused on
spatial disparities in operating costs; while
Fothergill et al.’s (1985b) Constrained Location
Hypothesis leant towards the paucity of urban
industrial floorspace compared with that available
in small towns and rural areas. By contrast,
Gould & Keeble (1984) developed a Residential
Preference Thesis, which directed attention to
the appeal of the countryside – to potential
entrepreneurs – as a place in which to live and
work; while Massey’s (1984) Labour Cost Hypothesis
highlighted the tendency for (generally large) firms to exploit a relatively cheap, predominantly
female, rural labour force through
their adjustment strategies.