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Abstract

This paper analyses the impact of government subsidy schemes in the Medicinal and Aromatic Plants (MAPs) sector in Albania, applying the Propensity Score Matching Method combined with the “veteran” approach. This is the first time that “veteran” and comparative approach has been applied to research on policy impact assessment in Albania. The paper is based on a structured survey applied in 2015 in the region of Shkodra (northern Albania), the region where MAPs cultivation is concentrated. Results suggest that subsidies affect the planted area and yields but no impact on price (proxy for quality). The paper contributes to the literature not only in terms of the relevant empirical findings but also regarding the benefit of applying combined methods in policy impact assessment.

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