IMPACTS OF AGRICULTURAL SUPPORTS ON EXPORTS OF INDIVIDUAL AGRICULTURAL PRODUCTS IN TURKEY

Abstract

Our paper empirically investigates the effects of agricultural supports on the exports of eighteen Turkish agricultural commodities to 72 countries over the 1965 - 2010 period. As we use PSE (Producer Support Estimate) and NRA (Nominal Rate of Assistance) as indicators of agricultural supports, our study considers not only agricultural subsidies but also all the efforts of government to support agriculture through both domestic and border measures. Our estimation results show that agricultural supports alon g with border measures have mixed effects on the export of Turkish agricultural commodities, and agricultural supports are as important as exchange rates in the determination of the export patterns of Turkish agricultural commodities. We also investigate t he effects of real exchange rate and its volatility on the exports of Turkish agricultural commodities. Although they are generally positive, our estimated coefficients on real exchange rates in the analysis exhibit mixed results.