Exploring the impact of agricultural price and trade policy reform under transition in Albania

Agricultural policy decision making in economies undergoing transition to m arket is in need of empirical tools for assessing the impact of alternative policy options. The econometric means available for such exercise, however , are limited for lack of data and structural breaks in economic behaviour. Synthetic, partial equilibrium, multi-market models offer a potential alte rnative. Such models have been used extensively, even in advanced economies , to offer valuable insights on the impact of alternative policy options. T his paper shows the use of such a partial equilibrium, multi-market, synthe tic-type model as a tool for agricultural policy analysis in a country in t ransition. The model is applied for Albania, a predominantly agricultural c ountry that, after a period of centralism and autarky, aims to re-join the international economic system. The model, albeit its many limitations, offe rs some useful insights on the impact of alternative options available for agricultural price and trade policy.