Agriculture in Kosovo: Can agriculture sector generate economic growth in Kosova?

AuthorFatmir Gashi
PositionNLB Prishtina
ISSN 2410-759X
Acces online at
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Tirana-Albania Vol. 1 No. 2
September 2015
Agriculture in Kosovo: Can agriculture sector generate economic growth
in Kosova?
Fatmir Gashi
NLB Prishtina
Economic growth in Kosovo during the last decades has been very low, and that is
reflected through the main macroeconomic indicators, such as low gross domestic
product-GDP, high trade deficit, high unemployment rate, lowforeign direct investments
and otherindicators which have limited the country’s economic development. Therefore
in order to solve these macroeconomic problems within last years, especially negative
trade balance, the government undertook measures in order to find the model that will
lead toeconomic growth and bring country out of stagnation.One of the sectors that is
seen as potential sector for development is agriculturesector? But the question that arises
is can agriculture sector be priority sector that will generate economic growth and
development in country? Which are comparative advantages as well as barriers for
development ofagricultural sector. The findings of this study, lead to conclusions that
agriculture has potential to generate economic growth and development in Kosovo.
Therefore, the government and other national and international institutions should
increase support for this sector, as one of the main economic sectors that will contribute
to development of Kosova.
Keywords: agriculture sector, economic growth, gross domestic product, trade deficit,
The potential contribution of agriculture to economic growth has been an on-
going subject of many controversy discussions among many economists duringlast
decades. Many authors believes that agriculture can promote economic development,
especially in low income nations. (Shultz 1964, Gollin, Parente and Rogerson 2002).
While other group of authors believe thatno country can rely in agriculture as a
main economic activity, and agriculture can be only as a supportive activity. (Lewis
,1954, Hirschman ,1958, Fei and Ranis, 1961, Jorgenson 1961), (TitusO.Awokuse,
Does agriculture really matter for economic growth in developing countries, 2009,5).
According to the World Bank, in the 21st century, agriculture continues to be a
fundamental sector for sustainable development and poverty reduction. Agriculture
sector contributes to development as an economic activity, as a livelihood, and as a
provider of environmental services, making the sector a unique instrument for
development. It can be source of growth for the national economy, a provider for
investment opportunities for the private sector and a prime drive of agriculture
related industries and the rural nonfarm economy. Agriculture can work in concern
with other sectors to produce faster growth, reduce poverty, and sustain the
environment. (The World Bank Report 2008, Agriculture for development,3)
In Kosovo, especially in the first years after the war, agriculture was not seen as
priority sector from government, and there were lack of financial support, due to
reduction of capacities in this sector before and during the war. The lack of

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