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Agricultural Trade and its Determinants: Evidence from Bounds Testing Approach for Turkey

Author

Listed:
  • Kamil Sertoglu

    (Department of Economics, Faculty of Business and Economics, Eastern Mediterranean University, Famagusta, North Cyprus)

  • Nezahat Dogan

    (Department of Business, Faculty of Economics and Administrative Sciences, British University of Nicosia, Kyrenia, North Cyprus)

Abstract

This paper empirically analyses the long run relationship between agricultural trade performance and real exchange rate in Turkey by using quarterly data covering 1994:Q1-2012:Q3. The other factors that are expected to effect agricultural trade balance such as ratio of export and import prices of agricultural goods, producer prices, real income of the country are also added to the model. For this purpose, bounds test approach for co-integration and autoregressive distributed lag method are used to show the existence of long-term relationship between agricultural trade balance and its determinants in Turkey. The results show that real exchange rate, real gross domestic product, and agricultural producer prices are highly significant and have negative impact on determining agricultural trade balances in Turkey. Consequently, findings suggest that the policies or reforms that reducing producer prices and using new technologies to increase productivity may help to create trade surplus in agricultural trade of Turkey

Suggested Citation

  • Kamil Sertoglu & Nezahat Dogan, 2016. "Agricultural Trade and its Determinants: Evidence from Bounds Testing Approach for Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 450-455.
  • Handle: RePEc:eco:journ1:2016-02-12
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    Citations

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    Cited by:

    1. Fassil Eshetu & Abule Mehare, 2020. "Determinants of Ethiopian Agricultural Exports: A Dynamic Panel Data Analysis," Review of Market Integration, India Development Foundation, vol. 12(1-2), pages 70-94, August.
    2. Kalpana Regmi & Jiajun Qiao & Jamal Hussain & Lochan Kumar Batala, 2022. "The effect of cereal production, cereal harvested area, and cereal yield, and forest on economic growth and environmental performance in Nepal," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 739-762, October.
    3. Mariusz Hamulczuk & Karolina Pawlak, 2022. "Determinants for international competitiveness of the food industry in 43 countries worldwide: evidence from panel models," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(3), pages 635-667, September.

    More about this item

    Keywords

    Agricultural Trade; Turkey; Bound Test Approach;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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