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Agriculture is a main part of the rural economy and has an important role in ensuring incomes for rural population and poverty reduction. In Moldova, the largest share of the rural population is employed in agriculture, which contributes to about 50% of their total incomes. The aim of this research was to analyze the importance of the agricultural sector of Moldova and its contribution to poverty reduction of rural population. The paper estimated the time series from 20012015 provided by the National Bureau of Statistics. Also, the data of the General Agricultural Census (NBS, 2011) and the World Bank Report on poverty reduction (2016) were used. Nowadays, agricultural sector, despite the registered decline has an important role in the economic development of Moldova. The agricultural sector registered a decline of its share in GDP from 30% in 2005 to 12% in 2015. Also, the employment in the agricultural sector diminished from 50% in 2001 to 28% in 2015. A boost in investments in the agricultural sector would allow an alleviation in rural poverty and an increase in the population standards of living. But the problem in attracting investments is related to the fact that the large corporate farms prevail other small subsistence households which manage 60% and 40% from the useable agricultural area.

POVERTY REDUCTION IN RURAL AREAS THROUGH AGRICULTURAL DEVELOPMENT: EVIDENCE FROM MOLDOVA