Agricultural Financing and Farm Productivity in the Western Balkans: A Systematic Review and Lessons for Kosovo

¹PHD, Department Finance/ Accounting, Agricultural University of Tirana, Tirana, Albania
²Lecturer, Department Finance/ Accounting, Agricultural University of Tirana, Tirana, Albania ^*
Corresponding author; E-mail: foagashi@outlook.com

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Abstract

The issue of financing agriculture remains a challenge for policymakers in many countries around the world. The low level of investment in agricultural enterprises has hindered the full utilization of agricultural capacities and prevented them from reaching their potential. This study conducts a systematic literature review focusing on the Western Balkans and analyzes both financial and non-financial factors affecting agricultural productivity. A combined qualitative and quantitative approach was applied to 17 sources, including academic articles and institutional reports. The results show that agricultural finance plays a crucial role in increasing productivity in the Western Balkans, but access to finance remains limited due to numerous obstacles. The most frequently identified challenges include land
fragmentation, insufficient investment, and low levels of financial literacy among farmers. While public budget support has increased, limited institutional capacity continues to hinder progress. By contextualizing these international findings within the Kosovo framework, this study identifies key local gaps and provides practical recommendations to improve access to finance and boost agricultural productivity.

Keywords: agricultural financing, farm productivity, financial and non-financial barriers, Kosovo, Western Balkans