Agricultural Loan and Agricultural Production Value in Turkey

Abstract

One of the major tools in agricultural finance is agricultural loans. Therefore, it is important to investigate the relationship between agricultural loans and agricultural production. In this study we aim to determine whether there is a causality relationship between the agricultural loan and agricultural production value. For this purpose we use the time series data for the years of 2005- 2018. In the study, we use Phillips-Perron unit root test to determine the stationarity levels of the variables examined. After we examine the stationary levels of time series, we perform Granger causality test to detect the causality relationship between agricultural loans and agricultural production. As a result of the Granger causality test, we determine that there is a unilateral causality relationship from the agricultural loan variable to the agricultural production value variable, that is, it can be said that agricultural loans affect the value of agricultural production. For this reason, we can state that facilitating the use of loans in the agricultural sector, and increasing the lending institutions will contribute to the increase of agricultural production value in meeting the input needs of the producers effectively.

Keywords

• Agricultural production
• Turkey
• Agricultural loan

Kaynakça

1. Ansari, F. B., 2001. Agricultural development bank of Pakistan to promote innovative technology. House J. Agro. Bankers Adbp, Islamabad, Pakistan.
2. Azimi, H., 2013. Role of bank credits in development of agriculture sector. Life Science Journal 10(1): 1386-1391.
3. Boeri, T., and Guiso, L. 2007. The first global financial crisis of the 21st Century. Felton, Andrew ve Reinhart, Carmen (edt.), The Subprime Crisis: Greenspan’s Legacy, CEPR, London, pp. 37-39.
4. Chandio, A. A., Yuansheng, J., Sahito, J. G. M., and Larik, S. A., 2016. Impact of formal credit on agricultural output: Evidence from Pakistan. African Journal of Business Management 10(8): 162-168.
5. Chandio, A. A., Magsi, H., Rehman, A., and Sahito, J. G. M., 2017. Types, sources and importance of agricultural credits in Pakistan. Journal of Applied Environmental and Biological Sciences 7(3): 144-149.
6. Doğan, B., Eroğlu, Ö., and Değer, O., 2016. Enflasyon ve faiz oranı arasındaki nedensellik ilişkisi: Türkiye örneği. Çankırı Karatekin Üniversitesi 6(1): 405-425.
7. Duramaz, S., and Taş, T., 2018. Kamusal, özel ve yabancı sermayeli bankaların kullandırdıkları tarımsal kredilerin tarımsal üretime etkisi: Ege bölgesi’ne yönelik panel veri analizi. Uluslararası Yönetim İktisat ve İşletme Dergisi 14(1): 35-50.
8. Feder, G., Lau, L.J., Lin, J.Y., and Luo, X., 1990. The relationship between credit and productivity in chinese agriculture: A microeconomic model of disequilibrium. American Journal of Agricultural Economics, 72(5), Proceedings Issue (Dec., 1990), pp. 1151-1157.

9. Granger, C. W. J., 1969. Investigating causal relations by econometric models and cross-spectral methods. Econometrica 37(3): 24-438.
10. Guirkinger, C., and Boucher, S., 2007. Credit constraints and productivity in Peruvian agriculture. Giannini Foundation of Agricultural Economics Working Paper No. 07-005.
11. Gujarati, D. N., 1995. Basic econometrics. Literatür Yayıncılık, İstanbul.
12. Güneş, E., and Artukoğlu, M., 2010. Küresel kriz sürecinde Türkiye’de tarımsal kredi etkinlik ve uygulamaları. In: Türkiye IX. Tarım Ekonomisi Kongresi, 22-24 Eylül, Şanlıurfa, pp. 795-801.
13. Güneş, E., Keskin, B., and Albayrak, M., 2017. Agricultural credit marketing in Turkey. International Peer-Reviewed Journal of Humanities and Academic Science 20: 21-34. Hedlund, E., and Kahn, H., 2009. The subprime crisis. Chalmers University Of Technology, Gothenburg.
14. Johnston, B. F., and Cownie, J. 1969. The seed- fertilizer revolution and labor force absorption.‖ American Economic Review LIX: 4 Pp569-582
15. Karacan, A. R., 1991. Tarım işletmelerinin finansmanı ve tarımsal kredi. Ege Üniversitesi Ziraat Fakültesi Yayınları, Ege Üniversitesi Basım Evi, İzmir.
16. Mellor J. W., 1966. The economics of agricultural development. Cornell University of Credit Press, Ithaca.
17. Özden, F., Topuzoglu, İ., and Pıtır, S. (2012). 10. Ulusal Tarım Ekonomisi Kongresi, p. 713- 719. 5-7 Eylül, Konya.
18. Saboor, A., Maqsood, H., and Madiha M., 2009. Impact of micro credit in alleviating poverty: An Insight from rural Rawalpindi. Pakistan Journal of Life and Social Sciences 7(1): 90-97.
19. Saleem, M. A., and Jan, F. A., 2011. The impact of agricultural credit on agricultural productivity in Dera İsmail Khan (District) Khyber Pakhtonkhawa Pakistan. European Journal of Business and Social Sciences 2(13): 279-284.
20. Schultz, T. W., 1964. Transforming traditional agriculture. Yale University Press, New Haven.
21. Sjah, T., Cameron, D., and Russell, I., 2003, Acceptance and repayment of agricultural credit in Lombok Indonesia–Farmers’ perspectives. In the 14th IFMA Congress, 10-15 August, Perth.
22. Terin, M., Güler, İ. A, and Aksoy, A., 2014. Türkiye’de tarımsal üretim ile tarımsal kredi kullanımı arasındaki nedensellik ilişkisi. Iğdır Üniversitesi Fen Bilimleri Enstitü Dergisi 4(1): 67-72.
23. Turkey Agricultural Finance Summit, 2017. http://tarimsalfinanszirvesi.tarim.gov.tr/sonucrapor.pdf
24. TURKSTAT, 2018. http://www.tuik.gov.tr/UstMenu.do?metod=kategorist
25. Yapraklı, S., and Güngör, B., 2007. Ülke riskinin hisse senedi fiyatlarına etkisi: İMKB 100 endeksi üzerine bir araştırma. Ankara Üniversitesi SBF Dergisi 62(2): 199-218.
26. Yılmaz, M. K., 2008. Dünya’da ve Türkiye’de Tarımsal Finansman: Türkiye İçin Model Önerisi. http://sites.khas.edu.tr/tez/MustafaKemalYilmaz_izinli.pdf.
27. Zandi, M., 2008. Financial shock, FT Press, New Jersey.
28. Zuberi, H. A., 1989. Production function, institutional credit and agricultural development in Pakistan. The Pakistan Development Review 28(1): 43–56.