An Empirical Analysis on Agricultural Productivity and Area-Based Supports in Turkey Cover Image

Türkiye’de Tarımsal Verimlilik ve Alan Bazlı Desteklemeler Üzerine Ampirik Bir Uygulama
An Empirical Analysis on Agricultural Productivity and Area-Based Supports in Turkey

Author(s): Hakan Uslu, Ferhat Apaydın
Subject(s): National Economy, Agriculture, Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today)
Published by: Hitit Üniversitesi
Keywords: Agricultural Productivity; Area Based Supports; Agricultural Incentives; Agricultural Production; Agricultural Lands;

Summary/Abstract: Since 2002, the field-based support given to the agricultural sector in Turkey has increased by an average of 3 times throughout the country, while this increase has increased up to 18 times in some regions. The impact of these supports, which are vital for the sector, on agricultural activities has not received enough attention in the national and international literature. However, it is extremely important for the country's economy and the future of the sector to analyze and interpret the supports given to the agricultural sector, which is considered as a locomotive in developing economies such as Turkey. For this purpose, the current study empirically analyzes the effect of field-based agricultural supports on agricultural productivity, production and agricultural areas in Turkey. Specifically, based on a panel dataset covering the 81 provinces of the country and the period 2002-2020, the study examines the relationship between area-based agricultural supports and agricultural productivity with econometric methods using Driscoll-Kraay estimator. The findings of the study report that area-based supports affect agricultural production and agricultural areas negatively, and when the supports are recalculated in terms of US dollars or purchasing power, they have no effect on agricultural productivity. The findings of the study also report the importance of mechanization in agricultural operations, the monetary values of the products harvested in the past periods and the amount of precipitation on agricultural productivity in the country.

  • Issue Year: 14/2021
  • Issue No: 2
  • Page Range: 477-499
  • Page Count: 23
  • Language: Turkish