Linking Farmers' Bargaining Power in Trade to their Plans for Future Economic Activities

Abstract

This paper aims to examine the relationship between the bargaining power of farmers in trade and their plans for future economic activity. While there is existing evidence shedding light on the factors influencing trading power and its consequences, there remains a compelling exigency for scientific substantiation clarifying the aforementioned nexus. A questionnaire was designed and utilized to collect primary data from farmers in Albania (with a sample size of 640). Factor analysis, reliability test and non-parametric statistical methods were used. Evidence was found in support of the aforesaid relationships. Hence, farmers who have plans for investments reflect a higher bargaining power in trading, as opposed to those without such plans. Moreover, interest in increasing farm activity is significantly associated with improved bargaining power in trade. This study enriches the literature, especially in the agribusiness field, by offering additional insights from a transition and developing country.