AGRICULTURAL INSURANCE ADOPTION IN ALBANIA: EVIDENCE FROM EMPIRICAL ANALYSIS

Autores/as

  • Altin Gjini Universiteti “Aleksandër Moisiu”
  • Etmond Shkembi Universiteti “Aleksandër Moisiu”
  • Luljeta Gjoni Universiteti “Aleksandër Moisiu”

DOI:

https://doi.org/10.18623/rvd.v23.n4.4896

Palabras clave:

Agricultural Insurance, Climate Risk, Institutional Trust, Premium Subsidization, Behavioral Perceptions

Resumen

Agricultural production in transition economies is increasingly exposed to climate-related risks, while the adoption of agricultural insurance remains limited despite its potential to enhance farm resilience and income stability. This study examines the key determinants of agricultural insurance adoption in Albania, a climate-vulnerable transition economy characterized by fragmented farm structures and evolving institutional frameworks. The main objective of the study is to identify the economic, institutional, and behavioral factors influencing farmers’ insurance decisions. The analysis is based on primary survey data collected from farmers across multiple regions of Albania and employs a binary logistic regression model to assess the impact of education, institutional trust, premium subsidization, climatic risk exposure, and behavioral perceptions on insurance adoption. The results reveal a significant gap between farmers’ willingness to insure and actual insurance uptake. While education and exposure to climatic risk increase awareness and willingness to adopt insurance, institutional trust emerges as the most decisive factor determining actual adoption. Premium subsidization positively influences insurance demand, although its effectiveness depends strongly on trust in insurance providers. Overall, the findings indicate that low insurance penetration reflects rational decision-making under institutional and economic constraints rather than a lack of information. The study concludes by emphasizing the need for integrated policy interventions combining financial education, trust-building measures, and stable subsidy schemes to strengthen agricultural resilience in transition economies.

Citas

Arrow, K. J. (1971). Essays in the theory of risk-bearing. Markham Publishing Company.

Beck, T., & Demirgüç-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943.

https://doi.org/10.1016/j.jbankfin.2006.05.009

Beck, T., & Demirgüç-Kunt, A. (2018). Financial inclusion and stability: A roadmap for policy. World Development, 101, 1–15. https://doi.org/10.1016/j.worlddev.2017.08.003

Binswanger-Mkhize, H. P. (2012). Is there too much hype about index-based agricultural insurance? Journal of Development Studies, 48(2), 187–200.

https://doi.org/10.1080/00220388.2011.625411

Cai, J., & Song, C. (2017). Insurance take-up in rural China. Journal of Development Economics, 129, 1–15. https://doi.org/10.1016/j.jdeveco.2017.08.006

Cai, J., de Janvry, A., & Sadoulet, E. (2015). Social networks and insurance take-up. American Economic Journal: Applied Economics, 7(2), 81–114. https://doi.org/10.1257/app.20130442

Carter, M. R., Cheng, L., & Sarris, A. (2017). Where and how index insurance can boost resilience. World Development, 93, 1–15. https://doi.org/10.1016/j.worlddev.2016.12.007

Carter, M. R., Janzen, S. A., & Barrett, C. B. (2021). Climate risk and insurance demand. World Development, 140, 105259. https://doi.org/10.1016/j.worlddev.2020.105259

Cole, S., Giné, X., & Vickery, J. (2013). How does risk management influence production decisions? Evidence from a field experiment. Review of Financial Studies, 26(1), 11–44. https://doi.org/10.1093/rfs/hhs095

Cole, S., Stein, D., & Tobacman, J. (2017). Dynamics of demand for index insurance: Evidence from a long-run field experiment. American Economic Review, 107(5), 282–286.

https://doi.org/10.1257/aer.p20171055

Dercon, S., Hill, R., Clarke, D., Outes-Leon, I., & Taffesse, A. S. (2019). Offering insurance to the poor: Evidence from Ethiopia. World Bank Economic Review, 33(1), 1–20.

https://doi.org/10.1093/wber/lhw039

Dillman, D. A., Smyth, J. D., & Christian, L. M. (2014). Internet, phone, mail, and mixed-mode surveys: The tailored design method (4th ed.). Wiley.

Field, A. (2018). Discovering statistics using IBM SPSS statistics (5th ed.). Sage.

Giné, X., & Yang, D. (2009). Insurance, credit, and technology adoption: Field experimental evidence. Journal of Development Economics, 89(1), 1–11.

https://doi.org/10.1016/j.jdeveco.2008.09.007

Greene, W. H. (2018). Econometric analysis (8th ed.). Pearson.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage.

Harizi, A., & Trebicka, B. (2023). The integration of social media in integrated marketing communication: A systematic review and theoretical framework. Academic Journal of Interdisciplinary Studies, 12(6), 159–171. https://doi.org/10.36941/ajis-2023-0146

Hazell, P., Pomareda, C., & Valdés, A. (2010). Crop insurance for agricultural development: Issues and experience. Johns Hopkins University Press.

Hosmer, D. W., Lemeshow, S., & Sturdivant, R. X. (2013). Applied logistic regression (3rd ed.). Wiley.

IPCC. (2022). Sixth Assessment Report: Impacts, adaptation and vulnerability. Intergovernmental Panel on Climate Change.

Jensen, N., Barrett, C. B., & Mude, A. G. (2018). Cash transfers and index insurance: A comparative impact analysis. Journal of Development Economics, 134, 1–15.

https://doi.org/10.1016/j.jdeveco.2018.04.004

Kahneman, D. (2011). Thinking, fast and slow. Farrar, Straus and Giroux.

Karlan, D., Ratan, A. L., & Zinman, J. (2016). Savings by and for the poor: A research review and agenda. Review of Income and Wealth, 62(4), 759–780.

https://doi.org/10.1111/roiw.12228

Kullolli, T., Trebicka, B., & Fortuzi, S. (2024). Understanding customer satisfaction factors: A logistic regression analysis. Journal of Educational and Social Research, 14(2), 218–231.

https://doi.org/10.36941/jesr-2024-0038.

Kume, E., & Trebicka, B. (2016). Is there any connection between poverty and informality? International Journal of Economics, Commerce and Management, 4(2), 732–740.

http://ijecm.co.uk/

Lohr, S. L. (2022). Sampling: Design and analysis (3rd ed.). Chapman & Hall/CRC.

Mahul, O., & Stutley, C. J. (2015). Government support to agricultural insurance: Challenges and options for developing countries. World Bank.

Myftaraj, E., & Trebicka, B. (2023). Analyzing the impact of loyalty card programs on customer behavior: Insights from the Albanian market. F1000Research, 12, 1028.

https://doi.org/10.12688/f1000research.137190.1

North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press.

Römer, U., Mußhoff, O., & Odening, M. (2022). Behavioral determinants of agricultural insurance demand. European Review of Agricultural Economics, 49(2), 371–402.

https://doi.org/10.1093/erae/jbab031

Tartaraj, A., Avdyli, D., & Trebicka, B. (2024). Accessing the TikTok influencer marketing on consumer behavior: An econometric examination. Journal of Educational and Social Research, 14(2), 346–360. https://doi.org/10.36941/jesr-2024-0068

Trebicka, B. (2014). The size of underground economy in Albania. Academic Journal of Interdisciplinary Studies, 3(4), 503–510. https://doi.org/10.5901/ajis.2014.v3n4p503

Trebicka, B. (2015). Does fiscal policy matter for economic growth? Empirical study of Albanian situation. Interdisciplinary Journal of Research and Development, 2(2), 9–12.

Trebicka, B. (2023). Understanding governance dynamics and success factors in family-owned businesses: A focus on corporate governance in family firms. In M. Tutino, V. Santolamazza, & A. Kostyuk (Eds.), New outlooks for the scholarly research in corporate governance (pp. 99–104). Virtus Interpress. https://doi.org/10.22495/nosrcgp19

Trebicka, B., Harizi, A., Krasniqi, M., Kalaja, R., & Tartaraj, A. (2024). Financial development and economic growth: Exploring the impact of financial systems, stability, and institutional quality on economic performance. Risk Governance & Control: Financial Markets & Institutions, 14(3), 76–85. https://doi.org/10.22495/rgcv14i3p8

Wooldridge, J. M. (2020). Introductory econometrics: A modern approach (7th ed.). Cengage.

World Bank. (2015). Agricultural insurance development in transition economies. World Bank Group.

Descargas

Publicado

2026-02-16

Cómo citar

Gjini, A., Shkembi, E., & Gjoni, L. (2026). AGRICULTURAL INSURANCE ADOPTION IN ALBANIA: EVIDENCE FROM EMPIRICAL ANALYSIS. Veredas Do Direito, 23, e234896. https://doi.org/10.18623/rvd.v23.n4.4896

Número

Vol. 23 (2026): Veredas do Direito, v. 23, 2026

Sección

Articles

Licencia

I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.

I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.

 

Licença Creative Commons Attribution 3.0