We analyze the impact of land fragmentation on production diversification in rural Albania. Albania represents a particularly interesting case for studying land fragmentation as the fragmentation is a direct outcome of land reforms. The results indicate that land fragmentation is an important driver of production diversification of farm households in Albania.
A case study from rural Albania
We find that land fragmentation stimulates significantly more diversification for subsistence farm households than for market-oriented households. Our findings have two key policy implications: (i) the consolidation policies that relocate and enlarge plots would have a significant impact on reducing agricultural production diversification; and (ii) land fragmentation contributes to the nutritional security improvement by increasing the variety of foodstuffs produced by subsistence farm households.