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Taking advantage of new data on a high migration country, the main goal of this paper isto investigate the impact of migration on resource allocation to, and income from,agricultural production of farm households. The main channels through which theseimpacts can be expected to materialize are via the allocation of labor and capitalresources of the households, as modified by the loss of ‘resident’ family workforce tomigration and the gain in access to working capital or credit made possible by the inflowof remittances or simply by an improved economic and financial status of the householdassociated with migration.Our results suggest that migration of one or more household members is being used byrural households in Albania as part of a strategy to move out of agriculture. The impactof family labor is unequivocal: members of households with migrants abroad worksignificantly fewer hours in agricultural production, both in total and on a per capitabasis. Also, women in migrant households work proportionately more than men, whencompared with their counterparts in non-migrant households. Contrary to expectation,and despite sizable remittances, migrant households do not appear to invest more inproductivity-enhancing and time-saving farm technologies in crop production such aschemical fertilizers and farm equipment. Despite the reduced labor effort, however,agriculture income does not seem to decline as a result of migration, and total income (asexpected) increases significantly.Although a relative decline of agriculture is an inevitable part of the developmentprocess, a stagnating agriculture ought to be a matter of concern to policy makers, giventhe number of Albanian households still relying on farming as main source of income,and the pervasive lack of non-farm income opportunities for rural households. Also, thelack of productivity growth and investment in agriculture that the evidence presented inthis paper seems to be hinting to, can be interpreted as signals of a foregone opportunityparticularly in areas of the country with higher farming potential.

Subject(s): Farm Management

Issue Date: 2007

Publication Type: Conference Paper/ Presentation

PURL Identifier:

Total Pages: 31

Series Statement: 103rd EAAE Seminar 'Adding Value to the Agro-Food Supply Chain in the Future Euromediterranean Space'

Record appears in: European Association of Agricultural Economists (EAAE) > 103rd Seminar, April 23-25, 2007, Barcelona, Spain

Autor: Miluka, Juna ; Carletto, Calogero ; Davis, Benjamin ; Zezza, Alberto


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