Analysis and Ranking of Factors Influencing Sustainable Economic Development in Rural Settlements of Fars Province

Introduction
Sustainable economic development is a cornerstone of rural development, aiming to enhance the quality of life and increase the income of rural communities. This concept emphasizes a balanced integration of economic, social, and environmental dimensions, seeking to meet present needs without compromising the ability of future generations to meet theirs. In rural settlements, sustainable development encompasses the efficient use of natural resources, infrastructure improvement, increased agricultural and livestock productivity, and access to new markets. Importantly, it extends beyond agriculture to include support for small and medium-sized enterprises (SMEs), the development of rural tourism, and digital-based economic activities. This holistic approach not only mitigates rural-to-urban migration but also promotes environmental sustainability, social equity, and local economic empowerment. Sustainable rural economic development involves a set of coordinated policies and actions designed to improve socioeconomic conditions. Sustainable agriculture—leveraging modern technologies and resource-efficient practices—plays a central role, while tourism and handicrafts contribute to income generation and cultural preservation. This study analyzes and ranks the key economic factors influencing sustainable development in rural settlements of Fars Province, Iran, providing critical insights for evidence-based decision-making and strategic planning by provincial authorities.
 
Methodology
This descriptive-analytical study employed a mixed-methods approach, integrating documentary analysis, library research, and expert surveys. Data were collected through a structured questionnaire administered to 30 domain experts with extensive experience in rural development, including specialists in agriculture, geography, rural planning, sociology, and relevant government agencies. In the first phase, a comprehensive set of economic indicators was identified from the literature and validated by experts. For the TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) method, experts rated the importance of each indicator on a 5-point Likert scale (1 = very low to 5 = very high). For the Analytic Hierarchy Process (AHP), pairwise comparisons were conducted using a 1–9 Saaty scale to determine relative weights. Data analysis and prioritization were performed using Expert Choice software, which facilitated the calculation of weights, consistency checks, and final ranking of indicators and economic sectors.
 
Findings
Twelve key indicators influencing sustainable economic development in rural settlements of Fars Province were identified and evaluated:

Access to markets (transport infrastructure and fair pricing)
Education and skill development
Availability of natural resources (water, soil, climate)
Support for sustainable agriculture
Establishment of production and distribution cooperatives
Use of technology and innovation
Investment and financing
Government support policies
Cultural and social awareness
Economic diversification
Essential infrastructure and public services
Quality of human resources

These were grouped into five economic sectors: agricultural, industrial, service, tourism, and digital activities. Using Shannon’s entropy method, weights were assigned to reflect each indicator’s relative importance. The results revealed that developing agricultural activities achieved the highest performance score (0.853), ranking first, while digital and internet-based activities scored the lowest (0.307). In the AHP analysis, natural resources (water and soil) emerged as the most influential factor, with a weight of 0.255, followed by essential infrastructure (0.187) and capital attraction (0.163). The consistency ratio (CR = 0.09) was below the acceptable threshold of 0.10, confirming the reliability and logical consistency of the pairwise comparisons.
 
Discussion and Conclusion
This study applies two complementary multi-criteria decision-making (MCDM) techniques—AHP and TOPSIS—to analyze and rank factors affecting sustainable economic development in rural Fars Province, yielding highly consistent results. Experts identified natural resources, particularly water and soil, as the most critical determinant, reflecting their foundational role in the livelihoods and identity of rural communities. Basic infrastructure and public services (e.g., electricity, water, internet) were ranked second, underscoring their enabling role in development. Access to investment and financing was also deemed vital for stimulating job creation and entrepreneurial activity. Lower-ranked factors such as cultural aspects and cooperatives indicate that while these areas are relatively strong, they require less immediate intervention. Sectoral prioritization shows agriculture as the top priority, followed by tourism and digital activities, highlighting the continued centrality of agriculture in the rural economy. These findings call for policy strategies that prioritize investment in natural resource management, infrastructure, and financial support systems. Ultimately, achieving sustainable rural development requires an integrated, balanced approach across economic, social, and environmental dimensions. This research provides a robust analytical framework for policymakers to design targeted, effective interventions that enhance rural welfare and long-term sustainability.