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Analysis of income determinants among rural households in Kosovo

Author

Listed:
  • Prespa Ymeri

    (Faculty of Economics and Social Sciences, Szent Istvan University, Gödöllő, Hungary)

  • Arben Musliu

    (Faculty of Agriculture and Veterinary Science, University of Prishtina, Prishtina, Kosovo)

  • Jehona Shkodra

    (Faculty of Agriculture and Veterinary Science, University of Prishtina, Prishtina, Kosovo)

  • Iliriana Miftari

    (Faculty of Agriculture and Veterinary Science, University of Prishtina, Prishtina, Kosovo)

  • Csaba Fogarassy

    (Climate Change Economics Research Centre Szent Istvan University, Gödöllő, Hungary)

Abstract

Kosovo is one of the poorest countries in Europe, despite the various poverty alleviation programs implemented by the authorities and the international funding community. This study aims to analyze income distribution inequality and factors behind rural households’ poverty in Kosovo. Data on farm income, nonfarm income, unearned income, and socio-economic characteristics were collected using a semi-structured questionnaire from 203 randomly selected households in Kosovo. Linear regression, one-way ANOVA, and different versions of poverty indexes were used to examine the data. One-quarter of households’ income comes from nonfarm activities. The middle-income households had the highest potential to find alternative employment in the nonfarm sector. Years of education, household size, number of family members above the age of 18, and total income had a positive impact on nonfarm revenues. The poorest rural households had the highest share of income from farm activities (77.52%). Nonfarm revenues have a positive impact on poverty alleviation; thus, the study suggests adopting suitable rural policies to enhance nonfarm employment for vulnerable rural households. The agro-tourism sector and circular economy approaches in agriculture with the focus on renewable energy can be considered as potential sources of nonfarm income, which could lead to sustainable poverty reduction.

Suggested Citation

  • Prespa Ymeri & Arben Musliu & Jehona Shkodra & Iliriana Miftari & Csaba Fogarassy, 2020. "Analysis of income determinants among rural households in Kosovo," Society and Economy, Akadémiai Kiadó, Hungary, vol. 42(4), pages 442-457, December.
    • Handle: RePEc:aka:soceco:v:42:y:2020:i:4:p:442-457
    DOI: 10.1556/204.2020.00021
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    Cited by:

    1. Manzoor Hussain Memon, 2023. "Poverty, Gap and Severity Estimates for Disaster Prone Rural Areas of Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(3), pages 645-663, April.

    More about this item

    Keywords

    diversified income; rural poverty; off-farm incomes; inequality; Kosovo;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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