Kosovo is transforming and reforming its national economy to meet EU standards and requirements. In the country is observed economic growth, but the trade balance and international competitiveness remain a major concern. Agriculture plays a significant role in the integration process and it is considered a source of employment and income for the majority of the rural population. However, the sector is experiencing difficulties in global markets.
The study analyzes the agricultural competitiveness of Kosovo to identify the main barriers and formulates conclusion and recommendation for future agricultural development. Several of the commonly used indicators for the assessment of competitive advantages have been applied such as the Relative index of export advantages – RXA, the Relative trade advantage – RTA and Related competitiveness – RC.
The results indicate that Kosovo has potential and could have competitive advantages in several agricultural sectors, but needs to overcome many challenges and difficulties. The Kosovar agricultural competitiveness could be improved by increasing productivity, administrative and infrastructure capacity and resolve the issues with land fragmentation.
Keywords: competitive advantages, trade balance, agricultural development.