Impact Of Agricultural Intervention Programs On Income And Employment: Evidence From Vegetable Sector In Kosovo

The paper aims to analyse the feasibility of the vegetable crop production in Kosovo by developing a model used to measure the impact of agricultural intervention programs. For this purpose, we have used combination of direct costing (DC) and activity based costing (ABC) to assess the production costs schemes comparing the two crop modalities extended in the two different regions using different cultivars and different production technologies. This study uses a DC and ABC approach in calculating costs in the pepper and tomatoes’ production sectors and in the related agro-processing industries based on five case studies. The results derived from the adopted DC and ABC model in the vegetable sector provide more details and precise cost information that assist various managerial decisions, but are primarily used here to evaluate the impact of agricultural programmes on employment and income generation. It helps government and donors to decide between types of funding intervention programs and to see their impact on agricultural development and employment. Results, which referred to one-hectare area, showed both a higher economic and financial sustainability of good agricultural practice with respect to conventional farming, while the opposite was true in terms of employment effects of intervention programs. The study provides policy implications for both, policy makers and donors when estimating impact of interventions on employment and income levels.