This paper examines and compares institutional arrangements addressing market failures endemic to rural areas. It argues that rural market failures cannot be satisfactorily addressed by for-profit firms and thus require the operation of third sector organizations, such as NGOs, cooperatives, and...

Purpose: Despite the worldwide importance of third sector organizations in rural areas, the theoretical connection between the third sector and rural development remains largely unexplored. The purpose of this paper is to develop a theoretical explanation of why and how third sector...