The Role of Weekly Rural Markets on Economic Development of Villages in Tehran Province of Iran

The goal of this study is to explain the economic impacts of weekly rural markets during the period 2004-2006. It examines the lack of direct access to sale markets, and also the absence of full and organized formation of commercial units in them; the problems that enforced the villagers to take long distances to reach to city, imposed higher transport costs on them, and transferred their productive benefits to cities. The study findings showed that the main reason for providing materials from wholesalers in Tehran and province city centers was the lack of seed capital and absence of bank loans, which imposed transport costs to suppliers and was a main barrier to direct provision of materials from rural production resources. Also, due to financial dependence of stall holders on Tehran wholesalers, their suppliable agricultural and non agricultural production surplus has no role in the formation and development of the markets; however markets formation has led to the reduction of rural buyers transport cost. Vendor's record has influenced their level of sales and incomes as well as the level of direct supply of rural agricultural and non agricultural products.