The effect of institutional constraints and business network on trust in government: An institutional perspective

Determinants of trust in institutions have been investigated by scholars mostly at individual level by using different theoretical perspectives. However, the ways in which changes in institutional environment affect business trust in government have not received adequate attention from researchers. The current paper sets out to contribute to existing literature by examining closely the role of business enabling policies, institutional constraints, and business networks on institutional trust in the context of a transition country like Albania. The study adopts an institutional perspective and the analysis is administrated on a firm-level data collection. Stratified sample technique was applied in selecting the respondents. To test the proposed linkages an ordinal regression was performed on an original data-set comprising 210 small and medium-sized enterprises. The results revealed that business enabling policies positively influence trust in government, whereas institutional constraints such as courts and corruption, and tax and labor regulations–related constraints negatively affect it. Hence, the higher the institutional constraints, the lower the institutional trust. Moreover, being a member of a business association diminished trust in government. Nevertheless, an interesting finding was that old firms in business association were less skeptic toward government as compared to the other ones. This paper offers useful insights for scholars into the linkage between trust in governmental agencies and entrepreneurship in institutional transformation contexts, and it unquestionably adds to the knowledge on transition countries. © 2019, Bucharest University of Economic Studies Publishing House. All rights reserved

Characteristics of farming systems in Albania

This report is based on information collected from a face-to-face survey of more than 1 000 farmers from three regions of Albania (namely Berat, Elbasan and Lezhë To identify a representative sample of Albanian farming systems, a three-step sample design was used. A group of 11 variables dealing with the socio-economic characteristics of farms was selected to build up the farming system typology. Two typologies are used: one for the whole sample (three regions) and a second one for each region. The differences between the two typologies are considered to be a proxy indicator of different characteristics of farming systems in each region. The farm types identified are (1) poly-culture, mainly for the market; (2) leisure farms; (3) arable crops; (4) fruit trees; (5) self-sufficient; and (6) livestock. The farm typology is slightly different for the regions of Berat and Lezhë. The farm types’ strategies are constructed according to the land, infrastructure facilities and the investment availability of farms. Non-agricultural incomes (remittances, income from the construction, trade, pensions, etc.) appear to provide an important economic support for the farm household. Farming structures in rural areas are characterised by the use of more labour and lower inputs. The farm types that tend to specialise in one activity are not always those that make the best use of labour and land. Farming does not provide enough income to repay the work put in at the official minimum wage level. Non-agricultural work is better paid. Albanian farms provide at least a minimal income that is enough to keep the household members above the threshold of extreme poverty. The farm types that base their incomes on agricultural activities are poorer than those that base their income on non-agricultural activities. Income structures and the low incomes generated by work in agriculture suggests that rural migration towards urban areas and abroad is a phenomenon that will persist into the future.JRC.J.4-Agriculture and Life Sciences in the Econom

Characteristics of farming systems in Albania

International audienceIt aims to provide evidence-based scientific support to the European policy-making process. The scientific output expressed does not imply a policy position of the European Commission.Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of this publication