Exports Development - Trends and Challenges, the Case of Albanian Agriculture

Abstract

Following the commitments at national and international strategic framework, especially European integration, the Government of Albania is engaged in improving the trade balance through export promotion strategies and policies. As a result, positive developments in exports, especially for agricultural products are evident. Export of agricultural products is substantially influencing the trade balance of the country, affecting at the same time its economic growth. According to the Ministry of Agriculture and Rural Development, in 2019 Albanian exports reached for the first time 300 million euros. Nowadays, agriculture and agro-processing industry have become the engine of the country's economy strongly contributing to GDP growth. This paper aims at providing a descriptive analysis of the current situation regarding foreign trade for agricultural products, the factors influencing exports increase as well as the barriers to trade. Under this study is also performed an analysis of the legal and institutional framework related to export promotion, fiscal incentives, governmental support, and their role in exports development in the country. Descriptive and SWOT analysis will serve as methodological instruments for this study. Comparison between 2020 trade data and past year will help to examine the impact of COVID 19 pandemic on trade in Albania. The findings of the paper will help to reveal the role of the export promotion policies in improving trade performance, the role of support schemes for increasing agriculture production, the barriers to exports in EU member states, etc. They will also help decision makers and research to better tailor appropriate strategies in order to improve trade balance in Albania.