A Comparative Advantage Analysis of Kosovan Agriculture

John Lingard

Post-Communist Economies, 2003, vol. 15, issue 3, 417-434

Abstract: Following the 1999 ethnic conflict in Kosova between Serbs and Kosovar Albanians, the UN has been promoting agricultural and rural recovery in a war-torn, divided and vandalised country. A pillar of this effort is to provide loans to farmers and agri-businesses to re-establish agricultural production so as to encourage moves towards reconciliation and a peaceful future. Early loans were advanced to uncompetitive sectors like wine which had no realistic chance of making any repayments. A study was carried out in 2002 to assess the competitiveness of the various agricultural sectors to rapidly inform future lending programmes. This article reports this study and its findings. Credit should only be advanced to sectors in which Kosova has potential competitiveness in terms of its trade parity prices. It is shown that, contrary to common belief, domestic wheat production is competitive (Table 3) and other sectors with potential to substitute for imports include the milk industry and potato production, but Kosova has few real opportunities to export to competitive, international markets.

Date: 2003
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DOI: 10.1080/1463137032000139089

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