AGRICULTURAL DEVELOPMENT AND ECONOMIC GROWTH RELATIONSHIP IN TRANSITION COUNTRIES FROM AN EMPIRICAL PERSPECTIVE

Abstract

After the dissolution of Union of Soviet Socialist Republics, Central and Eastern Europe (CEE) and Commonwealth of Independent States (CIS) countries are started reforms in every aspect of economic life in order to transition to a privatized and open market economy. As a consequence, agricultural sector, which is constructed on the basis of centrally planned Soviet Agricultural Model, undergo a set of structural transformations and ultimately become the most important key sector especially in CEE countries. Thus, agricultural sector is closely linked with economic development. In this context, our study is aimed to investigate the causal relationship between agricultural sector and economic development for 24 transition countries for 1995 – 2015 period, applying Pesaran (2007) second generation panel unit root test and Dumitrescu – Hurlin (2012) heterogeneous panel causality testing procedure. Results indicate that there is homogeneous causality running from economic growth to agricultural development and heterogeneous causality running from agricultural development to economic growth.

 

Keywords

• Agricultural development,Economic growth,Transition Countries

AMPİRİK PERSPEKTİFTEN GEÇİŞ EKONOMİLERİNDEKİ ZİRAİ KALKINMA VE EKONOMİK BÜYÜME İLİŞKİSİ

Abstract

Sovyet Sosyalist Cumhuriyetler Birliğindeki çözülmenin ardından Orta ve Doğu Avrupa ve Bağımsız Devletler Topluluğu ülkeleri özelleştirilmiş ve serbest bir piyasa ekonomisine geçiş yapmak için ekonomik yaşamın her alanında reformlara başladılar. Neticede, merkezi planlamaya dayalı Sovyet Tarım Modeli üzerine kurulmuş tarım sektörü de yapısal dönüşümler geçirdi ve özellikle Orta ve Doğu Avrupa ülkelerinde en önemli “kilit sektörlerden” bir tanesi haline geldi.  Bu nedenle tarım sektörü ekonomik kalkınma ile yakından ilişkilidir. Bu bağlamda, çalışmamızda tarım sektörü ve ekonomik kalkınma arasındaki nedensellik ilişkisinin 24 geçiş ekonomisine ait 1995 – 2015 periyodunu kapsayan veriseti ile Pesaran (2007) ikinci nesil panel birim kök testini ve Dumitrescu – Hurlin (2012) heterojen panel nedensellik test prosedürleri uygulanarak incelenmesi hedeflenmiştir. Sonuçlar ekonomik büyümeden tarımsal gelişime doğru homojen nedensellik ilişkisi olduğunu, tarımsal gelişimden ekonomik büyümeye doğru ise heterojen nedensellik ilişkisi olduğunu göstermektedir.

Keywords

• Tarımsal gelişme,Ekonomik Büyüme,Geçiş Ülkeleri

References

1. Apostolidou, I., Mattas, K., Loizou, E., & Michailidis, A. (2015). Agriculture’s Role in Economic Growth: An Exploratory Study Among Southern and Northern EU Countries EU Crisis and the Role of the Periphery (pp. 147-162): Springer.
2. Awokuse, T. O., & Xie, R. (2015). Does agriculture really matter for economic growth in developing countries? Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 63(1), 77-99.
3. Breusch, T. S., & Pagan, A. R. (1980). The Lagrange Multiplier Test and Its Applications to Model-Specification in Econometrics. Review of Economic Studies, 47(1), 239-253. doi:Doi 10.2307/2297111
4. Bulagi, M., Hlongwane, J., & Belete, A. (2015). Causality relationship between agricultural exports and agricultures share of gross domestic product in South Africa: A case of avocado, apple, mango and orange from 1994 to 2011. African Journal of Agricultural Research, 10(9), 990-994.
5. Chebbi, H. E., & Lachaal, L. (2007). Agricultural sector and economic growth in Tunisia: Evidence from co-integration and error correction mechanism.
6. Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450-1460. doi:10.1016/j.econmod.2012.02.014
7. European Bank for Reconstruction and Development (2013). http://www.ebrd.com/documents/comms-and-bis/pdf-transition-report-2013.pdf
8. European Bank for Reconstruction and Development (2014). http://www.ebrd.com/documents/comms-and-bis/pdf-transition-report-2014.pdf

9. Food and Agriculture Organization of the United Nations (2015). http://www.fao.org/documents/card/en/c/383d384a-28e6-47b3-a1a2-2496a9e017b2/
10. Gardner, B. L. (2005). Causes of rural economic development. Agricultural Economics, 32(s1), 21-41.
11. Jorgenson, D. W. (1961). The development of a dual economy. The Economic Journal, 71(282), 309-334.
12. Kuznets, S. (1961). Economic growth and the contribution of agriculture: notes on measurement. Paper presented at the 1961 Conference, August 19-30, 1961, Cuernavaca, Morelos, Mexico.
13. Lerman, Z. (2001). Agriculture in transition economies: from common heritage to divergence. Agricultural Economics, 26(2), 95-114.
14. Lewis, W. A. (1954). Economic development with unlimited supplies of labour. The manchester school, 22(2), 139-191.
15. Matsuyama, K. (1992). Agricultural productivity, comparative advantage, and economic growth. Journal of economic theory, 58(2), 317-334.
16. Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels.
17. Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of Applied Econometrics, 22(2), 265-312.
18. Pesaran, M. H., & Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50-93. doi:10.1016/j.jeconom.2007.05.010
19. Self, S., & Grabowski, R. (2007). Economic development and the role of agricultural technology. Agricultural Economics, 36(3), 395-404.
20. Swamy, P. A. V. B. (1970). Efficient Inference in a Random Coefficient Regression Model. Econometrica, 38(2), 311-323. doi:10.2307/1913012
21. Thirtle, C., Lin, L., & Piesse, J. (2003). The impact of research-led agricultural productivity growth on poverty reduction in Africa, Asia and Latin America. World Development, 31(12), 1959-1975.
22. Tiffin, R., & Irz, X. (2006). Is agriculture the engine of growth? Agricultural Economics, 35(1), 79-89.
23. Timmer, C. P. (1995). Getting agriculture moving: do markets provide the right signals? Food Policy, 20(5), 455-472.
24. Timmer, C. P. (2002). Agriculture and economic development. Handbook of agricultural economics, 2, 1487-1546.
25. World Bank Development Indicators (2016).