University of agribusiness and rural development, Fiscal policy, globalization and economic growth: sustainable development challenges and perspectives

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Rezear Kolaj, Petar Borisov, Teodor Radev, Adela Osmani Ergen

Last modified: 2020-02-27


Farmers in peri-urban areas despite the closeness to the city markets and important urban centers, paradoxically find it difficult to sell their agricultural products. Functioning of markets in urban areas is related with agricultural supply, affecting to the increase of income and potentially of social capital of farmers in peri-urban areas. Social capital and farmers' incomes can affect the functioning of markets in urban areas. The literature supports the influence between the functioning of markets and factors such as social capital and farmers' incomes. This study’s objective is the potential impact testing of possible influence between social capital and income of farmers in the first largest peri-urban area in central Albania near Tirana (Kamza, Paskuqan) to the functioning of markets in capital city of Tirana. The results of the statistical model used suggest that while social capital has no impact, farmers' income has a significant impact to the functioning of the market. Incentives for contemporary market innovations and production standards would have a two fold effect: for the consumer protection and for increase of competitive advantages of peri-urban agricultural products and it fits with the integration process.


Functioning of markets, social capital, income, farmers, peri-urban agriculture, Albania