Abstract
ABSTRACT: Agriculture is an indispensable activity for all countries. Depending on the increasing population, food needs can be met by increasing agricultural production. In this respect, it is of great importance to investigate the value of agricultural production and the factors affecting agricultural production. This study aimed to examine the impact on the agricultural production value of agricultural bank credit in Turkey. In the study, with the aim of examining the relationship between agricultural credit and agricultural production value in Turkey, 1998-2016 real agricultural loans and agricultural real gross domestic product annual data covering the period given above were used. The statistical analysis tool is ordinary least squares (OLS) techniques. According to OLS regression, the purposed model explains 83.94% of total variance. Regression coefficients show that effect of term is higher than effect of agricultural credits. The reason for this difference may be explained as dependency of credits on macroeconomic indicators and political structure of the country. This study proposes that agricultural credit mechanism in the country needs to be developed to increase the financing opportunities for the realization of technology and modernization investments by farmers.
Highlights
Regarding its emergence and development, agriculture is known to be as old as humanity
A 10% real increase in agricultural credits leads to a 0.5% increase in real agricultural gross domestic product (AGDP) in the current year
While a significant portion of total loans in Turkey is composed of credits for consumption, the role of agricultural credits is increasingly essential in the growth of the agricultural sector, which directly supports country production
Summary
Regarding its emergence and development, agriculture is known to be as old as humanity. Agricultural activities have become a practice of modern production techniques while inputs have continued to evolve further from primitive activities such gathering of wild plants as harvesting of trees, the collection of insects, and other small animal species and hunting. Today agriculture is an area of activity for many countries, where high export revenues are obtained. Due to technology and innovation, the development process continues, and production techniques nearly integrated with computers are widely available. Agriculture, like all countries in the world, has pivotal importance both in terms of its necessity for vitality and economical value for Turkey. In addition to meeting the need for food of people living in a country, agriculture is essential as it provides inputs to other sectors operating in the economy, contributes to employment. As well as with the vast agricultural land, has climate and other favorable conditions that enable agricultural activities
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