EXPLORING THE ASSOCIATION BETWEEN TRUST AND CONTRACTING IN AGRIBUSINESS SECTOR: EVIDENCE FROM ALBANIA
EXPLORING THE ASSOCIATION BETWEEN TRUST AND CONTRACTING IN AGRIBUSINESS SECTOR: EVIDENCE FROM ALBANIA

Summary/Abstract: This paper seeks to explore the associationbetween trust in the main buyer and contract farming inthe agribusiness sector. Despite numerous studies in thisfield, there is no consensus among scholars, which is themotivation behind undertaking the present study. Theresearch is based on primary data collected through astructured survey in Albania (640 respondents) duringDecember 2019 and January 2020. Several methods wereused to examine the relationship between trust andcontract farming, including factor analysis, a reliabilitytest, and a non-parametric statistical technique. Theresults show that trust and contracting have a significantrelationship in the context of the agribusiness sector.Moreover, the findings demonstrate that there is apositive correlation, meaning that those with a verbal orwritten contract exhibit higher trust than those withoutany prior agreement to sell the product. The scientificcontribution of this study is that it presents furtherarguments and justifications to a controversial discussionand sheds light on a little-studied context such as Albania.

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