Modeling the determinants of Agriculture: an assessment and a report of Albania’s current situation with a future perspective

So far Albania has been in a continuous search for foreign investments mainly in the areas of tourism, construction and manufacturing sectors. However, little interest has been shown to agriculture although it is a promising sector in Albania. The share of agricultural land in total land is only 24 %, but it has even been providing for about 19 % of the total GDP, a share which is higher than other countries of the region. Similarly, the sector has been the main source of employment in rural areas. Despite being a promising sector with a large share in the active population and a contributor to economic growth and poverty easement, agriculture appears to be limited because of the survival nature of farming, the small farm size and the faulty functioning land market. The focus of this paper will be on a careful analysis of the current agricultural situation in fields of organic agriculture, agri-food industry, farm income and employment, food policies, rural development policies, agricultural trade etc. Simultaneously, the paper will constantly keep a record of the European Union policies functioning in Albania with the purpose of making the country a competitive factor in the international arena. Therefore, by having the big picture of agriculture and a careful analysis of each factor in it, the paper will accomplish to present useful strategies which will in return help the amelioration of agriculture in Albania.