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Do coupled subsidies increase milk productivity, land use, herd size and income? Evidence from Kosovo

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  • Bajrami, Egzon
  • Wailes, Eric J.
  • Dixon, Bruce L.
  • Musliu, Arben
  • Durand-Morat, Alvaro

Abstract

This study assesses the effectiveness of the Subsidy per Head Scheme (SPHS) in increasing milk productivity, land use, herd size and income in dairy farms across the seven regions of Kosovo. SPHS represents one of the largest coupled subsidy programs in the agricultural sector of Kosovo in terms of farmer participation and budget allocation. We use a Propensity Score Matching approach to assess the impact of this program by comparing a group of participants with a group of non-participants during the 2013–2014 farming seasons. We test the robustness of the impact results using four different matching algorithms. Results reveal SPHS was not effective in increasing land use, gross income and farm size (number of cows), although SPHS had a limited impact on improving milk productivity. In addition, the study highlights the need to reformulate coupled subsidies and develop new, complementary strategies that address farmers’ needs more efficiently.

Suggested Citation

  • Bajrami, Egzon & Wailes, Eric J. & Dixon, Bruce L. & Musliu, Arben & Durand-Morat, Alvaro, 2019. "Do coupled subsidies increase milk productivity, land use, herd size and income? Evidence from Kosovo," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 121(3), pages 134-143.
    • Handle: RePEc:zbw:espost:265236
    DOI: 10.7896/j.1913
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    References listed on IDEAS

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    Cited by:

    1. Bajrami, Egzon, 2024. "Evaluating the agricultural policy in Kosovo: Lessons learnt and the pathway forward," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 299140, March.

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    More about this item

    Keywords

    coupled subsidy; propensity score matching; impact evaluation; Kosovo;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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