Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania

31 Pages Posted: 20 Apr 2016

See all articles by Klaus Deininger

Klaus Deininger

World Bank - Development Economics Group (DEC); World Bank - Development Research Group (DECRG)

Sara Savastano

International Fund for Agricultural Development (IFAD); University of Rome Tor Vergata - Faculty of Economics; World Bank

Calogero Carletto

World Bank; World Bank - Development Research Group (DECRG)

Date Written: April 1, 2012

Abstract

Albania's radical farmland distribution is credited with averting an economic crisis and social unrest during the transition. But many believe it led to a holding structure too fragmented to be efficient, and that public efforts to consolidate plots are needed to lay the foundation for greater rural productivity. This paper uses farm-level data from the 2005 Albania Living Standards Measurement Survey to explore this quantitatively. The analysis finds no support for the argument that fragmentation reduces productivity. However, producers fail to utilize about 10 percent of the country's productive land, and, in the majority of cases, this land has been idle for at least five years. Farmers quote inefficiently-small plots as the reason for this in few cases, casting doubt on the scope for land consolidation to solve this issue. Instead, the data are consistent with the notion of land market imperfections, which can be traced to gaps in the legal and policy framework, as well as inefficiencies in registry operations, leading to land abandonment on a large scale. To maintain the productive potential of Albania's rural economy and, if and when needed, the ability to conduct consolidation in a cost-effective and sustainable manner, it will be critical to complement the emphasis on consolidation with an effort to address those gaps and inefficiencies on a priority basis.

Keywords: Banks & Banking Reform, Rural Development Knowledge & Information Systems, Rural Land Policies for Poverty Reduction, Land Use and Policies, Municipal Housing and Land

Suggested Citation

Deininger, Klaus and Savastano, Sara and Carletto, Calogero, Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania (April 1, 2012). World Bank Policy Research Working Paper No. 6032, Available at SSRN: https://ssrn.com/abstract=2037686

Klaus Deininger (Contact Author)

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/kdeininger

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Sara Savastano

International Fund for Agricultural Development (IFAD) ( email )

Via Paolo di Dono
Rome, 00142
Italy

University of Rome Tor Vergata - Faculty of Economics ( email )

Via di Tor Vergata
Rome, Lazio 00133
Italy
+390672595639 (Phone)

World Bank

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Calogero Carletto

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
24
Abstract Views
410
PlumX Metrics