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Can Direct Payments Facilitate Agricultural Commercialisation: Evidence from a Transition Country

Kostov, Philip, Davidova, Sophia, Bailey, Alastair, Gjokaj, Ekrem, Halimi, Kapllan (2020) Can Direct Payments Facilitate Agricultural Commercialisation: Evidence from a Transition Country. Journal of Agricultural Economics, . ISSN 0021-857X. E-ISSN 1477-9552. (doi:10.1111/1477-9552.12390) (Access to this publication is currently restricted. You may be able to access a copy if URLs are provided) (KAR id:82004)

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Abstract

We investigate the impact of direct payments on agricultural commercialisation in Kosovo. Kosovo is one of the poorest countries in Europe but, with European assistance, provides substantial funds to support agriculture, made up of many small and often semi‐subsistence farms. Thus, the effect of this support is a central policy issue. Identifying the effect of direct payments on market participation faces endogeneity issues arising from the possible simultaneous determination of participation in support programmes and market participation. In order to achieve proper identification of the endogenous direct payments, we use a strategy of targeted identification search that employs several different methodological approaches. We find that direct payments for fruit and vegetables, and those for cereals and oilseeds have a positive effect on market participation. However, we cannot identify any definite effect of livestock payments.

Item Type: Article
DOI/Identification number: 10.1111/1477-9552.12390
Uncontrolled keywords: Direct coupled payments; endogeneity; identification; Kosovo; market participation
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Sophia Davidova
Date Deposited: 06 Jul 2020 09:22 UTC
Last Modified: 17 Jul 2020 13:32 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/82004 (The current URI for this page, for reference purposes)
Davidova, Sophia: https://orcid.org/0000-0001-8653-8191
Bailey, Alastair: https://orcid.org/0000-0002-4682-3251
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