Purpose- The present study aims at establishing border markets with the purpose of legalizing the deals and economic boom, employment, and promoting life standards in border areas. The main purpose of the present study is to analyze the physical and economic effects of border markets on the development of rural areas. Design/methodology/approach- The present study is an applied study with regard to nature, and descriptive-analytic with regard to methodology. The population of this study includes the villages in the city of Agh-Ghala; 7 villages were selected as the sample, and the data was collected through researcher made questionnaires (383 questionnaires according to Cochran formula). Data analysis was done using Friedman, Chi square, Wilcoxon, and one sample t-tests in SPSS. Findings: Developing border markets leads to improvement in economic and physical indices in rural areas. The most effects were found on the quality of new-built houses, and the fewest effects were found on rural facilities and infrastructures. Border markets had important effects both on economy and culture of rural residents. The only component indicating insignificance was the effect of border markets on the reduction of unemployed people in the society, which is because of lower market boom during recent years and lack of free zones. Research limitations/implications- Spatial dispersion of the villages, limitations in obtaining information, and concerning about questionnaires being completed are some of the issues. Practical implications- Through planning and shift in attitudes in economic issues, sufficient attention will be paid to less considered needs of the residents of border areas; and the rural physical and economic indices will be improved through creating border markets. Originality/value- Border markets and their development can lead to the improvement and promotion of life quality of the residents of border areas and the population willingness to stay.
