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Abstract
This study analyses the impact of government subsidy schemes on farm production capacity, technical effi ciency and use of
idle production factors (land and labour) in the olive and vineyard sectors of Albanian agriculture. The paper uses a quasiexperimental
design by applying a propensity score matching method based on a structured survey conducted in 2013. The
results show that the government subsidy scheme had a net positive impact on areas planted with olives and grapevines, and
on part-time on-farm employment. On the other hand, no signifi cant net impact was observed regarding farm size and crop
yields. This is the fi rst time that such an in-depth impact assessment of government subsidies in the agriculture sector has been
carried out in Albania, thus the results will be useful both for scientists and policy makers in agriculture and rural development.