The role of the general factors in the formation of the agricultural land value

Abstract

The analysis of the agricultural land market for a relatively long period (about 20 years) in the Republic of Moldova reveals a major dependence between the value of the land and the social and economic situation in the country. We should note the role of the agricultural land value as the country’s greatest wealth in the implementation of economic policies such as fiscal policy, credit-banking policy, etc. The instability of the increase in the value of agricultural land leads directly to economic and social instability, especially when agriculture is the main branch of the country. The dependence of the agricultural land value on the economic situation in the country is an objective reality. We should identify the factors of influence on value and keep them at the level necessary for the social and economic development. Obviously, this reality creates a series of exploitation conditions, obligations, rules, which then turn into a legal framework and even into the traditions of the nation. In this context, it is important to know the natural potential, the dynamics of the agricultural land value in correlation (dependency) with the factors of influence on it. This research is based on the analysis of agricultural land transactions for the period mentioned above. The analysis period has been selected for several reasons. The main condition was the ability to gather and analyze information. This article doesn’t answer only one question: whether the obvious trends for the Republic of Moldova are equally real in another country with less agrarian economy.