Rural nonfarm income and its impact on agriculture: evidence from Albania |
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Authors: | Talip Kilic Calogero Carletto Juna Miluka Sara Savastano |
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Affiliation: | Development Research Group, Mail Stop: MC3-306, The World Bank, 1818 H Street NW Washington, DC 20433, USA;Development Research Group, Mail Stop: MC3-306, The World Bank, 1818 H Street NW, Washington, DC 20433, USA;Department of Economics, Roper Hall, American University, 4400 Massachusetts Avenue NW, Washington, DC 20016, USA;Department of Economics and CEIS, University of Rome "Tor Vergata," Via Columbia 2, 00133, Rome, Italy |
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Abstract: | Using data from the 2005 Albania Living Standards Measurement Study (ALSMS05) survey, this article analyzes the overall impact of household nonfarm income-generating activities (RIGA) on agricultural expenditures as well as technical efficiency of rural farm households. We also differentiate the impact for subsistence and commercial farmers, who are in the top 25% of the distribution of value of annual agricultural sales. Our results show that on the whole, Albanian rural households utilize their nonfarm earnings not to invest in time-saving, efficiency-increasing technologies, but to move out of crop production. We derive similar findings when we try to estimate the same relation separately for commercial and subsistence farmers. However, for commercial farmers, we find a positive impact of household nonfarm earnings on livestock expenditures. |
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Keywords: | C21 C24 C67 O13 P20 Q12 |
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