Rural Out Migration and Land Use in Moldova

Type Working Paper - Policy Research Reports
Title Rural Out Migration and Land Use in Moldova
Author(s)
Publication (Day/Month/Year) 2011
URL http://pdc.ceu.hu/archive/00006465/01/cps-research-report-rural-out-migration-moldova-2011.pdf
Abstract
Moldova has seen large flows of its citizens residing in rural areas migrating abroad in search of higher wages
and decent living conditions. This paper aims to investigate whether additional income from remittances enable
migrant households to invest more in their agricultural land, increase their farm efficiency and the labor resources
they allocate to agriculture in general. Furthermore, it aims to assess whether remittances lead to productive
investments in agriculture, particularly if there is any impact on the land consolidation, considering the substantial
drop in the economic activity rate in rural areas as less and less land is being cultivated by peasant farms.
This study found that rural out migration and depopulation has changed the structure of the agricultural
production with more agricultural areas being allocated to crops that require minimum resources.
Migration accelerated the decline of the agricultural sector as migrants and their family members reduce
the amount of land cultivated and invest less in new agricultural equipment or in productivity-enhancing
technologies; instead, they are using remittances to move out of agriculture by leasing parts of their land,
though retaining their ownership rights. Considering current land consolidation initiatives undertaken
by the state, the author advocates a careful and weighted approach considering the experience of the
neighboring countries which aimed to tackle high land fragmentation, ageing, and migration in rural areas.

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