Turkish Journal of Agricultural and Natural Sciences

Öz

The primary purpose of the present study is to examine the impact of agricultural financialization on agricultural output in Türkiye. The reference period of the research consisted of 1994-2023 period. Variables were created with dataset of the Banks Association of Türkiye and the World Bank. In the empirical model, agriculture, forestry and fishing value added (% of GDP) (AGRVD) was selected as the dependent variable to represent agricultural output and agricultural specialized loans provided by banks (% of GDP) (AGRCD) was determined as the independent variable to represent agricultural financialization. Additionally, exports of goods and services (% of GDP) (XGS) was included in the model as a control variable. Standard diagnostic tests were used to determine the properties of the data. The Autoregressive Distributed Lag Bound Test (ARDL) and Error Correction Model (ECM) were used to estimate long and short run relationship respectively. The study found that agricultural financialization has a significant impact on agricultural output in Türkiye. It was found that series in the empirical model were cointegrated. Furthermore, Fully Modified Ordinary Least Squares (FMOLS) test results, conducted to verify the accuracy of the findings, indicated that a 1% increase in AGRCRD led to a 1.73% increase in AGRVD, while a similar increase in XGS resulted in a 0.36% decrease in AGRVD. In the direction of the evidence, this study recommends continuing policies that facilitate access to credit and other financial instruments for the agricultural sector to enhance agricultural output. The study recommends continuing policies that facilitate access to credit and other financial instruments for the agricultural sector to enhance agricultural output.