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DISCUSSION PAPER Leibniz Institute of Agricultural A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Meyer, Wiebke; Möllers, Judith; Buchenrieder, Gertrud Working Paper Does non-farm income diversivication in Northern Albania offer an escape from rural poverty? Discussion Paper, No. 119 Provided in Cooperation with: Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Halle (Saale) Suggested Citation: Meyer, Wiebke; Möllers, Judith; Buchenrieder, Gertrud (2008) : Does non- farm income diversivication in Northern Albania offer an escape from rural poverty?, Discussion Paper, No. 119, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), Halle (Saale), http://nbn-resolving.de/urn:nbn:de:gbv:3:2-11375 This Version is available at: http://hdl.handle.net/10419/28453 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu DISCUSSION PAPER Leibniz Institute of Agricultural Development in Central and Eastern Europe DOES NON-FARM INCOME DIVERSIFICATION IN NORTHERN ALBANIA OFFER AN ESCAPE FROM RURAL POVERTY? WIEBKE MEYER, JUDITH MÖLLERS, GERTRUD BUCHENRIEDER DISCUSSION PAPER NO. 119 Theodor-Lieser-Straße 2, 06120 Halle (Saale), Germany Phone: +49-345-2928 110 Fax: +49-345-2928 199 E-mail: [email protected] Internet: http://www.iamo.de Wiebke Meyer is a research associate at the department External environment for Agriculture and Policy Analysis at the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO). Her research work focuses on non-farm income diversification in Albania. Dr. Judith Möllers is a senior research associate at the department External environment for Agriculture and Policy Analysis at the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO). Her research mainly focuses on rural development in south-eastern Europe, rural livelihoods, non-farm diversification and structural change. Gertrud Buchenrieder is professor for Agricultural Policy and Institutions at the Martin-Luther-University Halle-Wittenberg, furloughed to the Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO), where she is head of the department External Environment for Agriculture and Policy Analysis. Mailing address: Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO) Theodor-Lieser-Straße 2 06120 Halle (Saale) Germany Phone: 0049-345-2928-333 Fax: 0049-345-2928-199 E-mail: [email protected] Internet: http://www.iamo.de Discussion Papers are interim reports on work of the Institute of Agricultural Development in Central and Eastern Europe and have received only limited reviews. Views or opinions expressed in them do not necessarily represent those of IAMO. Comments are welcome and should be addressed directly to the author(s). The series Discussion Papers is edited by: Prof. Dr. Alfons Balmann (IAMO) Dr. Stefan Brosig (IAMO) Prof. Dr. Gertrud Buchenrieder (IAMO) Prof. Dr. Thomas Glauben (IAMO) Dr. Kathrin Happe (IAMO) Prof. Dr. Heinrich Hockmann (IAMO) Dr. Martin Petrick (IAMO) ISSN 1438-2172 Does non-farm income diversification in Northern Albania offer an escape from rural poverty? 3 ABSTRACT The paper uses up-to-date household data from two Northern-Albanian regions. It summarises socio-economic facts on taking up remunerative non-farm employment and identifies the determinants of non-farm income diversification at the farm household level based on a binary logistic regression. Furthermore, the paper provides insight in the northern-Albanian farming structure, migration patterns, attitudes towards and reasons for income diversification into the non-farm sector. Income diversification indeed has a positive impact on the welfare of the households: A statistically significant increasing trend in incomes with rising diversification level was observed. JEL: Q12, R23, F22, P36 Keywords: Non-farm income diversification, farm households, migration, Albania. ZUSAMMENFASSUNG STELLT AUßERLANDWIRTSCHAFTLICHE EINKOMMENSDIVERSIFIZIERUNG EINEN AUSWEG AUS DER ARMUT FÜR LANDWIRTSCHAFTLICHE HAUSHALTE IN NORDALBANIEN DAR? Dieser Beitrag fasst mit Hilfe von aktuellen Haushaltsdaten aus zwei nordalbanischen Unter- suchungsregionen das sozioökonomische Umfeld und insbesondere die einkommenschaffenden Tätigkeiten im außerlandwirtschaftlichen Sektor zusammen. Eine binäre logistische Regression zeigt die maßgeblichen Einflussfaktoren außerlandwirtschaftlicher Einkommensdiversifizierung auf der Ebene landwirtschaftlicher Haushalte. Außerdem gibt diese Arbeit Einsicht in die Agrar- struktur Nordalbaniens, Merkmale der dort vorgefundenen Migrationsmuster, die Einstellungen zu und Gründe für die außerlandwirtschaftliche Einkommensdiversifizierung. Die Analyse zeigt einen positiven Einfluss von Einkommensdiversifizierung auf den Wohlstand der Haushalte: Es konnte ein statistisch signifikanter Trend bestätigt werden, der zeigt, dass mit steigendem Diversifikationsniveau das Haushaltseinkommen steigt. JEL: Q12, R23, F22, P36 Schlagwörter: Außerlandwirtschaftliche Einkommensdiversifizierung, landwirtschaftliche Haushalte, Migration, Albanien. Does non-farm income diversification in Northern Albania offer an escape from rural poverty? 5 TABLE OF CONTENTS Abstract.................................................................................................................................. 3 Zusammenfassung................................................................................................................. 3 List of tables ........................................................................................................................ 6 List of figures ...................................................................................................................... 6 List of acronyms.................................................................................................................. 6 Introduction ....................................................................................................................... 7 1 Rural non-farm diversification ........................................................................................ 7 2 The study area of Northern Albania................................................................................ 10 Albania’s present economic situation.............................................................................. 10 The research areas: Shkoder and Kukes.......................................................................... 12 3 Methodology................................................................................................................... 13 4 Empirical results............................................................................................................ 15 Household demographics ................................................................................................ 15 Infrastructure ................................................................................................................... 16 Agriculture....................................................................................................................... 17 Migration ......................................................................................................................... 18 Household income........................................................................................................... 18 Diversity of income ......................................................................................................... 19 Attitudes towards the income generating activities......................................................... 22 Reasons for diversification into RNFE............................................................................ 22 Determinants of non-farm income diversification .......................................................... 24 5 Sumary and conclusions................................................................................................ 26 References .......................................................................................................................... 27 6 Wiebke Meyer, Judith Möllers, Gertrud Buchenrieder LIST OF TABLES Table 1: Demand-pull and distress-push variables.......................................................... 10 Table 2: Variables used in the estimation of the level of income diversification with more than 50% of income from non-farm sources..................................
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