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AUTHOR(S): Ines Nurja, Ledia Thomo
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TITLE Challenges and Possibilities in Accessing Finance for Albania's Agricultural Sector |
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ABSTRACT The sector of agriculture plays a vital role in the economy of Albania and employment. However, the sector has not seen significant growth over the years and one of the factors that directly undermine the sector’s development is lack of access to finance. While access to finance is essential to improve and accelerate growth of the sector, it appears that the sector of agriculture remains heavily underfinanced by financial institutions. The aim of this paper is to study the factors that significantly affect the access to loans for agribusinesses. The data collected were derived from a unique loan referral system in Albania and these primary data included 158 agribusinesses in a period of 6 years. A multivariate linear regression was used in this paper to study several independent factors. The results of the regression model showed that eight factors significantly contributed to the loan amount an agribusiness can obtain namely revenues, number of employees, collateral, export, year, region, type of investment and the COVID-19 situation. All factors seem to be positively correlated to the loan amount, except for exports and COVID-19. This study and the respective results have significant value to the policymakers and the banking industry which may better target their policies and procedures according to regions and needs of agribusinesses. |
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KEYWORDS agriculture, loans, banks, revenues, collateral, Albanian economy, development, financial sector |
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Cite this paper Ines Nurja, Ledia Thomo. (2025) Challenges and Possibilities in Accessing Finance for Albania's Agricultural Sector. International Journal of Agricultural Science, 10, 95-105 |
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