WSEAS Transactions on Systems
Print ISSN: 1109-2777, E-ISSN: 2224-2678
Volume 24, 2025
(Special Issue: Financial Systems and Administration Science) The Impact of Economic Factors on Agricultural Production in the Case of a Developing Country
Authors: , ,
Abstract: This paper aims to identify the key economic factors that boost agricultural activity in a developing country such as Albania. The comprehensive literature review reveals that this study area is lacking in our country. After identifying the main factors that significantly impact the level of total farm production, a multiple regression analysis is employed as a statistical technique widely used in cases where the dependent variable is influenced by more than one independent variable. For this purpose, we develop a regression equation using secondary data regarding agricultural production, business freedom, credit, remittances, and foreign direct investments over 20 years with annual frequency retrieved from the World Bank and the National Institute of Statistics of Albania. The regression model results show that the independent variables are statistically significant in impacting the dependent variable. We conclude that business freedom and credit positively impact on agricultural production, whereas remittances and foreign direct investments have the opposite impact.
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Keywords: Agriculture Production, Developing Country, Business Freedom, Credit, Remittance, FDI, Economy
Pages: 413-423
DOI: 10.37394/23202.2025.24.36