The Vanishing Farms? The Impact of International Migration on Albanian Family Farming
Taking advantage of new data on a high migration country, the main goal of this paper is to investigate the impact of migration on resource allocation to, and income from, agricultural production of farm households. The main channels through which these impacts can be expected to materialize are via the allocation of labor and capital resources of the households, as modified by the loss of "resident" family workforce to migration and the gain in access to working capital or credit made possible by the inflow of remittances or simply by an improved economic and financial status of the household associated with migration. Our results suggest that migration of one or more household members is being used by rural households in Albania as part of a strategy to move out of agriculture. The impact of family labor is unequivocal: members of households with migrants abroad work significantly fewer hours in agricultural production, both in total and on a per capita basis. Also, women in migrant households work proportionately more than men, when compared with their counterparts in non-migrant households. Contrary to expectation, and despite sizable remittances, migrant households do not appear to invest more in productivity-enhancing and time-saving farm technologies in crop production such as chemical 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 (as expected) increases significantly. Although a relative decline of agriculture is an inevitable part of the development process, a stagnating agriculture ought to be a matter of concern to policy makers, given the 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, the lack of productivity growth and investment in agriculture that the evidence presented in this paper seems to be hinting to, can be interpreted as signals of a foregone opportunity particularly in areas of the country with higher farming potential.
|Date of creation:||2007|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
- Funkhouser, Edward, 1992. "Migration from Nicaragua: some recent evidence," World Development, Elsevier, vol. 20(8), pages 1209-1218, August.
- Douglas Staiger & James H. Stock, 1997.
"Instrumental Variables Regression with Weak Instruments,"
Econometric Society, vol. 65(3), pages 557-586, May.
- Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
- Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-330, June.
- de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
- J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
- Cungu, Azeta & Swinnen, Johan F M, 1999. "Albania's Radical Agrarian Reform," Economic Development and Cultural Change, University of Chicago Press, vol. 47(3), pages 605-619, April.
- Ilahi, Nadeem & Jafarey, Saqib, 1999. "Guestworker migration, remittances and the extended family: evidence from Pakistan," Journal of Development Economics, Elsevier, vol. 58(2), pages 485-512, April.
- Flore Gubert, 2002. "Do Migrants Insure Those who Stay Behind? Evidence from the Kayes Area (Western Mali)," Oxford Development Studies, Taylor & Francis Journals, vol. 30(3), pages 267-287.
- Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittance Receipt and Business Ownership in the Dominican Republic," The World Economy, Wiley Blackwell, vol. 29(7), pages 939-956, 07.
- Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
- Gero Carletto & Benjamin Davis & Marco Stampini & Stefano Trento & Alberto Zezza, 2004. "Internal Mobility and International Migration in Albania," Working Papers 04-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- Jean-Paul Azam & Flore Gubert, 2005. "Those in Kayes. The Impact of Remittances on Their Recipients in Africa," Revue économique, Presses de Sciences-Po, vol. 56(6), pages 1331-1358.
- Jean-Paul Azam & Flore Gubert, 2002. "Those in Kayes. The impact of remittances on their recipients in Africa," Working Papers DT/2002/11, DIAL (Développement, Institutions et Mondialisation).
- Azam, Jean-Paul & Gubert, Flore, 2004. "Those in Kayes: The Impact of Remittances on their Recipients in Africa," IDEI Working Papers 308, Institut d'Économie Industrielle (IDEI), Toulouse.
- Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
- Azzarri, Carlo & Carletto, Calogero & Davis, Benjamin & Zezza, Alberto, 2006. "Choosing to Migrate or Migrating to Choose: Migration and Labor Choice in Albania," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25538, International Association of Agricultural Economists.
- Carlo Azzarri & Gero Carletto & Benjamin Davis & Alberto Zezza, 2006. "Choosing to Migrate or Migrating to Choose: Migration and Labour Choice in Albania," Working Papers 06-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-178, May.
- Taylor, J. Edward, 1992. "Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects," Journal of Policy Modeling, Elsevier, vol. 14(2), pages 187-208, April.
- Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, September.
- Lipton, Michael, 1980. "Migration from rural areas of poor countries: The impact on rural productivity and income distribution," World Development, Elsevier, vol. 8(1), pages 1-24, January.
- Nancy McCarthy & Gero Carletto & Benjamin Davis & Irini Maltsoglou, 2006. "Assessing the Impact of Massive Out-Migration on Agriculture," Working Papers 06-14, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). Full references (including those not matched with items on IDEAS)