Year 2020, Volume 5 , Issue 2, Pages 115 - 131 2020-12-31

How Do Diesel Price Fluctuations Affect Economic Convergence over Agriculture Sector among OECD Countries?

Erkan AKTAŞ [1] , Süleyman DEĞİRMEN [2] , İhsan Erdem SOFRACI [3] , Mehmet SONGUR [4]

Energy/oil trade has formed large part of the World trade since its usage has been increased in time and became an important factor of production in the World via an important input in agricultural sector along with usage of intensive mechanization in it. Therefore, fluctuations in diesel prices in the World have influenced the cost of production up and down. In oil importing developed and developing countries, another reason of the fluctuations in diesel prices following up increases in world oil price hasbeen induced by higher tax on oil levied by incumbent governments. On the one side, higher tax on oil increases tax income for government; however, this high tax rate negatively can affect agricultural sector in terms of agricultural products’ export and import rate, added value, prices of these products etc. In regard of our case in the paper, levied tax rate creates different diesel prices in the member countries of the OECD. The aim of this study initially is to test the relationship between diesel prices and agricultural productivity and then, to search for another chain relationship between the productivity and economic growth rate in developed and developing countries in the OECD. In short, we propose a study which analysis how diesel price fluctuations can affect economic convergence across OECD countries in terms of agricultural productivity in a multifaceted sense.

Diesel price fluctuations, Economic convergence, Sector of Agriculture, OECD
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Primary Language en
Subjects Management
Journal Section Original Articles

Orcid: 0000-0002-7068-2807
Author: Erkan AKTAŞ (Primary Author)
Institution: Mersin Üniversitesi İktisadi İdari Bilimler Fakültesi İktisat Bölümü
Country: Turkey

Author: Süleyman DEĞİRMEN
Country: Turkey

Author: İhsan Erdem SOFRACI
Country: Turkey

Orcid: 0000-0003-4763-9314
Author: Mehmet SONGUR
Country: Turkey


Application Date : November 27, 2019
Acceptance Date : July 24, 2020
Publication Date : December 31, 2020

APA Aktaş, E , Değirmen, S , Sofracı, İ , Songur, M . (2020). How Do Diesel Price Fluctuations Affect Economic Convergence over Agriculture Sector among OECD Countries? . Bulletin of Economic Theory and Analysis , 5 (2) , 115-131 . Retrieved from