The impact of economic crisis on agricultural macroeconmic variables in turkey for the period of 1980-2008.

Abstract

This study explores the impact of the economic crisis on the agricultural sector of Turkey. The data used covers the period of 1980-2008. This study employs some agricultural macro variables namely, gross value added of the agricultural sector, quantity index of agricultural export and import values, relative prices of agricultural goods and the reel exchange rate. The framework of the analysis is a five variables VAR model. Via this VAR model the study try to assess the impact of the economic crisis that occurred after the 1980’s on the agricultural sector of Turkey. Applying the VAR model a robust relationship is found between agricultural GDP, import, export, relative prices and exchange rates. The assessment of the effect of the economic crisis is being captured by adding a dummy variable to the model. The results show that there is no robust relationship between agricultural GDP and the indicator of the years of the (dummy) crisis. Moreover, there seems to be a positive relationship between the dummy and agricultural export and exchange rate while a negative one between import and relative prices.Economic Crisis, VAR, Agricultural Macro-Variables, Turkey