Impact of Agricultural Supports on Agricultural Foreign Trade in Turkey: Spatial Panel Econometrics Modelling Approach

In an increasingly globalized and populous world, international trade of agricultural commodities is at the center of the agricultural economy. In order to ensure sustainability in the agricultural production, the importance of various agricultural supports/ subsidies or measures applied by the states is increasing. These supports are important both for the development of the agricultural sector and feeding the growing population, and also play an important role in the economic development of the countries. Therefore, this study aims to measure the effects of agricultural supports given by central governments on the foreign trade of agricultural products. Specifically, based on a panel dataset covering 81 provinces of Turkey for the time period 2002-2020 and spatial panel econometrics models, the current study empirically analyzes the associations between agricultural exports and the two main agricultural supports in Turkey, namely area-based supports and deficiency payments. The findings suggest that the overall effect of the supports on the export of agricultural commodities is negative in Turkey. Results further present that there is a strong spatial correlation of agricultural activities between neighboring provinces.

Keywords: Agricultural Foreign Trade, Agricultural Supports, Agricultural Products, Spatial Econometrics

Reference: Uslu, H. (2021). “Impact of Agricultural Supports on Agricultural Foreign Trade in Turkey: Spatial Panel Econometrics Modelling Approach”. Ed. Ferhat Çıtak. Current Studies in International Trade InTraders 2021 , ps. 53-82. İstanbul

For full Text: Current Studies in International Trade InTraders 2021