The Long-Run Impact of Financial Development on Agricultural Productivity: The case of Türkiye

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Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi
Sayı: 58
The Long-Run Impact of Financial Development on Agricultural Productivity: The case of Türkiye

The Long-Run Impact of Financial Development on Agricultural Productivity: The case of Türkiye

Authors : Serkan Varsak, Cüneyt Koyuncu, Halit Yalçın

Pages : 295-308

Doi:10.52642/susbed.1779239

View : 96 | Download : 174

Publication Date : 2025-12-30

Article Type : Research Paper

Abstract :The objective of this study is to figure out how financial development and agricultural productivity interacts in the long-run in Türkiye by using two distinct measures of agricultural productivity. Well-established and developed financial market enables farmers to reach funds at lower funding costs and in turn enhance agricultural productivity. The analyses are based on annual time series data of Türkiye for the years between 1980 and 2021. Firstly we checked the stationarity status of each variable by using Kwiatkowski-Phillips-Schmidt-Shin stationarity test. Secondly we conducted co-integration analysis by employing ARDL bounds test to see if our variables move together in the long-run. Lastly we estimated short-run and long-run coefficients by utilizing ARDL estimation technique. Positive statistically significant long-run coefficient estimation was obtained for financial development variable. According to the estimation results, if financial development index goes up by 1% then agricultural productivity per worker increases by 1.75% and agricultural productivity per capita augments by 0.87%. We also obtained positive statistically significant long-run coefficient estimations for control variables of fertilizer consumption and number registered tractors. The finding of positive association between financial development and agricultural productivity reveals the importance of developed financial market for enhancement of agricultural productivity in an economy. Therefore policy makers aiming to improve agricultural productivity should prioritize policies supporting the development of financial markets besides the other policies.
Keywords : Tarımsal Verimlilik, Finansal Kalkınma, Fintek, ARDL, Co-integration

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