Impact of agricultural supports on competitiveness of agricultural products

Hasan Arisoy

Agricultural Economics, 2020, vol. 66, issue 6, 286-295

Abstract: The agricultural sector is being supported in Turkey, as well as in the world. The issue of competitiveness is observed in agriculture, despite supports. This study aims at investigating the impact of agricultural supports in Turkey on competitiveness of agricultural products. Vector autoregression (VAR) model has been adopted in the study. The internal terms of trade (TOT), percentage producer support estimate (PSE), and the producer nominal protection coefficient (NPC) variables have been included in the model. The internal terms of trade in Turkey have developed over time against the benefit of agricultural sector. PSE has had a significant impact on TOT. Therefore, the use of PSE as a political variable has been concluded as a significant. Means of support must be discussed in Turkey more than the amount of supports. In particular, supports that will provide farmers with competitive advantage and boost up product farmyard prices will be more efficient and beneficial for farmers.

Keywords: agricultural protectionism; internal terms of trade; trade advantage; Turkey; vector autoregression analysis (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:66:y:2020:i:6:id:416-2019-agricecon

DOI: 10.17221/416/2019-AGRICECON

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