The Impacts of Renewable Energy, Exchange Rate, and Inflation on Agricultural Sector Employment in Turkey

Abstract

The Autoregressive Distributed Lag (ARDL) bounds test approach is used in this study to provide empirical evidence about the impact of renewable energy usage, exchange rate, and inflation rate on agricultural sector employment in Turkey from 1990 to 2019. According to the study’s findings, a 1% increase in renewable energy usage will raise agricultural sector employment by 1.06% in the short run, a 1% inflation will reduce agricultural sector employment by 0.12%, and a 1% Turkish Lira appreciation will raise agricultural sector employment by 0.4%. The long-run ARDL model results show a 1.06% decrease in agricultural sector employment for every 1% increase in renewable energy use, whereas inflation shows a 0.09% decrease in agricultural employment for every 1% inflation rate, while every 1% Turkish Lira appreciation increases agricultural employment by 0.08%. Based on these study findings, renewable energy promotes agricultural employment in the short run. In the meantime, long-term renewable energy development cannot accommodate agricultural sector employment. As a result, Turkey must devise a long-term renewable energy development strategy that will increase employment while keeping inflation and exchange rates stable and not harming agricultural employment.

Keywords

• tarımsal istihdam
• ardl sınır testi yaklaşımı
• döviz kuru
• enflasyon
• yenilenebilir enerji
• agricultural employment
• ardl bounds test approach
• exchange rate
• inflation
• renewable energy