The Relationship Between Agricultural Fixed Capital Investment and Agricultural Growth in Turkey

Abstract

The purpose of this study is to examine the effects of fixed capital investments on agricultural growth in Turkey. For this purpose, in the study, agricultural growth, agricultural private fixed capital, agricultural public fixed capital investments and agricultural employment variables were analysed with the help of VAR Analysis and Granger Causality Test using annual data between 1995-2018. According to the results of variance decomposition and impact response functions obtained from the VAR Model, variables were interacted and agricultural growth was affected by fixed capital investments and employment variables. Granger causality analysis is that there is a two-way causality between agricultural growth and employment and one-way causality from public fixed capital investments to agricultural growth.

Keywords

• agricultural growth
• agricultural private fixed capital investments
• agricultural public fixed capital investments
• var analysis