Status quo bias of agrarian land structures in rural Albania

Abstract

This article provides a micro-analysis of land market development after two decades of Albanian transition. We use data from a survey conducted in four Albanian villages during May 2013. The results indicate that land markets are highly rigid with almost no structural changes occurring over the last two decades. Sale markets are almost non-existent owing to formal and informal regulations and prevalence of subsistence farming in rural Albania. The status quo established by the 1991 land reform determines the present ownership structure. Rental markets are more sizable but, owing to property rights insecurity and monitoring problems of absentee landowners, the vast majority of rental arrangements are between family relatives.