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Does Agricultural Support Policy Affect Crop Production in Turkey?

Year 2021, Volume: 12 Issue: 23, 130 - 140, 31.05.2021
https://doi.org/10.47129/bartiniibf.896106

Abstract

One of the most basic requirements of humanity is the need for nutrition. Therefore, the demand for food products that do not have a substitute for human life is quite heavy. To this end, the agricultural sector becomes prominent to meet the need for nutrition but puts economic units in a great search. In this context, the agricultural sector is an important dynamic of the country’s economies. This study seeks to answer how support and incentives for the agricultural sector affect agricultural crop production. In this context, the ARDL bounds test with a structural break was conducted using Turkey’s 1995-2018 data to determine the effects of agricultural supports on agricultural crop production. According to the analysis results, it was found out that agricultural supports in Turkey positively affect agricultural crop production in both the short and long term.

References

  • Akyol, M. (2018). An Examination of the Relationship Between Agricultural Incentives and Agricultural Added Value: Panel Simulated Equations System Analysis for New Industrialized Countries, The Journal of International Scientific Researches, 3(3), 226-236.
  • Bezlepkina, I. V. & Lansink, A. O. (2006). Impact of Debts and Subsidies on Agricultural Production: Farm-Data Evidence, Quarterly Journal of International Agriculture, 45(1), 7–34.
  • Demiryürek, K. (2011). The Concept of Organic Agriculture and Current Status of in the World and Turkey, GOÜ, Ziraat Fakültesi Dergisi, 28(1), 27-36.
  • Doğan, Z., Arslan, S. & Berkman, A. N. (2015). Development and Problems of Agricultural Sector in Turkey: A Historical Outlook, Niğde Üniversitesi İİBF Dergisi, 8(1), 29-41.
  • Gollin, D., Lagakos, D. & Waugh, M.E. (2011). The Agricultural Productivity Gap in Developing Countries, International Growth Center Working Paper.
  • Gu, Z. (2014). Evolution of Post-War Agricultural Support Policiesin China’s Taiwan, Asian Agricultural Research, 6(11), 58-61.
  • Hennessy, D. A. (1998). The production effects of agricultural income support polices under uncertainty, American Journal of Agricultural Economics, 80(1), 46–57.
  • Işık, H. B. & Bilgin, O. (2016). The effects of agricultural support policies on agricultural production: The case of Turkey, RSEP International Conferences on Social Issuesand Economic Studies, 2nd Multidisciplinary Conference Madrid SPAIN 2-4 November, 111-119.
  • Kumbhakar, S. C. & Lien, G. (2010). Impact of Subsidies on Farm Productivity and Efficiency, The Economic Impact of Public Support to Agriculture, Studies in Productivity and Efficiency 7, ed. by V. Eldon Ball, Roberto Fanfani, Luciano Gutierrez, Springer, 109-124.
  • McCloud, N. & Kumbhakar, S. C. (2008). Do subsidies drive productivity? A cross-country analysis of Nordic dairy farms, In: Bayesian econometrics. Emerald Group Publishing Limited, ed. by Siddhartha Chib, William Griffiths, Gary Koop, Dek Terrell. Emerald Group Publishing Limited, 23, 245-274.
  • Nastis, S. A., Papanagiotou, E. & Zamanidis, S. (2012). Productive Efficiency of Subsidized Organic Alfalfa Farms, Journal of Agricultural and Resource Economics, 37(2), 280-288.
  • OECD (2021), Agricultural Support (indicator). doi: 10.1787/6ea85c58-en [Accessed on 08 March 2021]
  • OECD (2021), Crop Production (indicator). doi: 10.1787/49a4e677-en [Accessed on 08 March 2021]
  • Pesaran, M. H., Shin, Y. & Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships, Journal of Applied Econometrics, 16(3). 289-326.
  • Roe, T., Somwaru, A. & Diao, X. (2003). Do Direct Payments Have Intertemporal Effects on U.S.’s Agriculture? in Government Policy and Farmland Markets: The Maintenance of Farmer Wealth, ed. by Charles B. Moss and Andrew Schmitz, Iowa State Press, 115-140.
  • Skuras, D., Kostas, T., Dimara, E. & Tzelepis, D. (2006). The Effects of Regional Capital Subsidies on Productivity Growth: A Case Study of The Greek Food and Beverage Manufacturing Industry, Journal of Regional Science, 46, 355-381.
  • Şaşmaz, M.Ü. & Özel, Ö. (2019). Effect of Agricultural Incentives on the Development of Agricultural Sector: Example of Turkey, Dumlupınar University Journal of Social Sciences, 61, 50-65.
  • The World Bank (2021). Agriculture, Value Added (% of GDP) Database, https://databank.worldbank.org/reports.aspx?source=2&series=NV.AGR.TOTL.ZS&country=[ Accessed on 10.02.2021]
  • Vozarova, I. K. & Kotulic, R. (2016). Quantification of the Effect of Subsidies on the Production Performance of the Slovak Agriculture, Procedia Economics and Finance, 39, 298-304.
  • Wickramasinghe, G.A. U. (2017). Fostering Productivity in the Rural and Agricultural Sector for Inclusive Growth in Asia and the Pacific, Asia-Pacific Development Journal, 24(2), 1-22.
  • Yıldız, F. (2017). The Effect of Agricultural Support Payments Made from the Central Government Budget on Agricultural Production in Turkey: The Period of 2006-2016, Sayıştay Dergisi, 104, 45-63.
Year 2021, Volume: 12 Issue: 23, 130 - 140, 31.05.2021
https://doi.org/10.47129/bartiniibf.896106

Abstract

References

  • Akyol, M. (2018). An Examination of the Relationship Between Agricultural Incentives and Agricultural Added Value: Panel Simulated Equations System Analysis for New Industrialized Countries, The Journal of International Scientific Researches, 3(3), 226-236.
  • Bezlepkina, I. V. & Lansink, A. O. (2006). Impact of Debts and Subsidies on Agricultural Production: Farm-Data Evidence, Quarterly Journal of International Agriculture, 45(1), 7–34.
  • Demiryürek, K. (2011). The Concept of Organic Agriculture and Current Status of in the World and Turkey, GOÜ, Ziraat Fakültesi Dergisi, 28(1), 27-36.
  • Doğan, Z., Arslan, S. & Berkman, A. N. (2015). Development and Problems of Agricultural Sector in Turkey: A Historical Outlook, Niğde Üniversitesi İİBF Dergisi, 8(1), 29-41.
  • Gollin, D., Lagakos, D. & Waugh, M.E. (2011). The Agricultural Productivity Gap in Developing Countries, International Growth Center Working Paper.
  • Gu, Z. (2014). Evolution of Post-War Agricultural Support Policiesin China’s Taiwan, Asian Agricultural Research, 6(11), 58-61.
  • Hennessy, D. A. (1998). The production effects of agricultural income support polices under uncertainty, American Journal of Agricultural Economics, 80(1), 46–57.
  • Işık, H. B. & Bilgin, O. (2016). The effects of agricultural support policies on agricultural production: The case of Turkey, RSEP International Conferences on Social Issuesand Economic Studies, 2nd Multidisciplinary Conference Madrid SPAIN 2-4 November, 111-119.
  • Kumbhakar, S. C. & Lien, G. (2010). Impact of Subsidies on Farm Productivity and Efficiency, The Economic Impact of Public Support to Agriculture, Studies in Productivity and Efficiency 7, ed. by V. Eldon Ball, Roberto Fanfani, Luciano Gutierrez, Springer, 109-124.
  • McCloud, N. & Kumbhakar, S. C. (2008). Do subsidies drive productivity? A cross-country analysis of Nordic dairy farms, In: Bayesian econometrics. Emerald Group Publishing Limited, ed. by Siddhartha Chib, William Griffiths, Gary Koop, Dek Terrell. Emerald Group Publishing Limited, 23, 245-274.
  • Nastis, S. A., Papanagiotou, E. & Zamanidis, S. (2012). Productive Efficiency of Subsidized Organic Alfalfa Farms, Journal of Agricultural and Resource Economics, 37(2), 280-288.
  • OECD (2021), Agricultural Support (indicator). doi: 10.1787/6ea85c58-en [Accessed on 08 March 2021]
  • OECD (2021), Crop Production (indicator). doi: 10.1787/49a4e677-en [Accessed on 08 March 2021]
  • Pesaran, M. H., Shin, Y. & Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships, Journal of Applied Econometrics, 16(3). 289-326.
  • Roe, T., Somwaru, A. & Diao, X. (2003). Do Direct Payments Have Intertemporal Effects on U.S.’s Agriculture? in Government Policy and Farmland Markets: The Maintenance of Farmer Wealth, ed. by Charles B. Moss and Andrew Schmitz, Iowa State Press, 115-140.
  • Skuras, D., Kostas, T., Dimara, E. & Tzelepis, D. (2006). The Effects of Regional Capital Subsidies on Productivity Growth: A Case Study of The Greek Food and Beverage Manufacturing Industry, Journal of Regional Science, 46, 355-381.
  • Şaşmaz, M.Ü. & Özel, Ö. (2019). Effect of Agricultural Incentives on the Development of Agricultural Sector: Example of Turkey, Dumlupınar University Journal of Social Sciences, 61, 50-65.
  • The World Bank (2021). Agriculture, Value Added (% of GDP) Database, https://databank.worldbank.org/reports.aspx?source=2&series=NV.AGR.TOTL.ZS&country=[ Accessed on 10.02.2021]
  • Vozarova, I. K. & Kotulic, R. (2016). Quantification of the Effect of Subsidies on the Production Performance of the Slovak Agriculture, Procedia Economics and Finance, 39, 298-304.
  • Wickramasinghe, G.A. U. (2017). Fostering Productivity in the Rural and Agricultural Sector for Inclusive Growth in Asia and the Pacific, Asia-Pacific Development Journal, 24(2), 1-22.
  • Yıldız, F. (2017). The Effect of Agricultural Support Payments Made from the Central Government Budget on Agricultural Production in Turkey: The Period of 2006-2016, Sayıştay Dergisi, 104, 45-63.
There are 21 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Makaleler
Authors

Şerif Canbay 0000-0001-6141-7510

Publication Date May 31, 2021
Submission Date March 12, 2021
Acceptance Date May 3, 2021
Published in Issue Year 2021 Volume: 12 Issue: 23

Cite

APA Canbay, Ş. (2021). Does Agricultural Support Policy Affect Crop Production in Turkey?. Bartın Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi, 12(23), 130-140. https://doi.org/10.47129/bartiniibf.896106

Bartın Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Mayıs ve Kasım aylarında olmak üzere yılda iki defa yayımlanan, beş yılını doldurmuş çift kör hakemli uluslararası bir dergidir. Dergimiz 06.04.2015 tarihinden itibaren EBSCO Host’ta, Akademia Sosyal Bilimler İndeksi (ASOS), SOBIAD ve Google akademik indeksinde taranmaktadır. TR Dizin indeksinde taranması için de girişimlerde bulunulmuş olup değerlendirilme süreci devam etmektedir. 

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