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From Wikipedia, the free encyclopedia. A traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and the services the economy produces, as well as the rules and manner of their distribution. Countries that use this type of economic system are often rural and farm-based.
Quick Answer. According to Econedlink.org, traditional economies are found in parts of the Middle East, Asia, Africa and South America. Traditional economies are found in developing countries; many of these countries rely on gathering, hunting and farming. These countries have an economic system that involves cooperative decisions in social communities based on tradition or customs. The people that live in these countries work collectively to meet daily needs and produce goods.