The Relationship Between Real Agricultural Gross Domestic Product and Agricultural Loans
Abstract
The aim of this study is to determine the relationship between the real agricultural gross domestic product, which is one of the economic indicators of rural development and total agricultural loans among agricultural financing instruments. The study covers the years of 1998-2018. The real agricultural gross domestic product and the total agricultural loans data are included in analysis. In this study, to make the right model selection, the Advanced Dickey-Fuller unit root test is used. After determining the unit root levels of the variables by the Advanced Dickey-Fuller unit root test, the Engle-Granger two-stage cointegration analysis is performed to determine whether there is cointegration relationship between the real agricultural gross domestic product and total agricultural loans. As a result of the analysis, it can be stated that the total agricultural loans and the real agricultural gross domestic product variables act together. In other words, it is determined that the real agricultural gross domestic product and the agricultural loans are in a the long-term relationships.
Keywords
References
- Anetor, F. O., Ogbechie, C., Kelikume, I. and Ikpesu, F. 2016, Credit Supply and Agricultural Production in Nigeria: A Vector Autoregressive (VAR) Approach”, Journal of Economics and Sustainable Development, 7(2), 131-143.
- Artık, S. and Abay, C. 2014, Türkiye’de Tarımsal Büyümenin Kaynakları: 1980- 2010 Dönemi, XI. Ulusal Tarım Ekonomisi Kongresi, 3- 5 Eylül, Samsun.
- Azimi, H. 2013, Role of Bank Credits in Development of Agriculture Sector, Life Science Journal, 10(1), 1386-1391.
- Awotide, B. A., Abdoulaye, T. Y., Alene, A. and Manyong, V. M. 2015, Impact of Access to Credit on Agricultural Productivity: Evidence from Smallholder Cassava Farmers in Nigeria, The International Conference of Agricultural Economists (ICAE) Milan, Italy August 9-14.
- Burgess, R. and Pande R. 2002, Do Rural Banks Matter? Evidence from The Indian Social Banking Experiment’, https://econ.lse.ac.uk/staff/rburgess/wp/aer.pdf, Accessed Date: 22.08.2019.
- Carter, M. R. 1984, Identification of The Inverse Relationship between Farm Size and Productivity: An Empirical Analysis of Peasant Agricultural Production, Oxford Economic Papers, 36(1), 131-145.
- Carter, M. R. and Olinto, P. 2003, Getting Institutions “Right” for Whom? Credit Constraints and The Impact of Property Rights on the Quantity and Composition of Investment, American Journal of Agricultural Economics, 85(1), 173–186.
- Chandio, A. A., Jiang, Y., Wei, F. and Guangshun, X. 2018, Effects of Agricultural Credit on Wheat Productivity of Small Farms in Sindh, Pakistan, Agricultural Finance Review, 78(5), 592-610.
Details
Primary Language
English
Subjects
Agricultural Engineering
Journal Section
Research Article
Publication Date
December 31, 2019
Submission Date
November 13, 2019
Acceptance Date
November 29, 2019
Published in Issue
Year 2019 Volume: 25 Number: 2