The changing spatial distribution of activities and people in Europe is leading to difficultics and uncertainties in the rural areas. Therefore the issue of rural development has become increasingly acute and is a matter of concern for policymakers and scientists. This paper aims at presenting the theoretical and methodological aspects of rural development by examining the economic factors which portray the space structuration and its change over time. It stresses the role of aggregation and despersion forces, the effect of organisational factors, the analytical framework which is available to shed light on the economic mechanisms involved. Econometric and synthetic models that are available for quantifying rural development are also discussed and some conclusions for research are emphasised.