The role and importance of agriculture in Turkey's development

Abstract

Agriculture is an important sector for both developed and developing countries all over the world. This study examines the role of agricultural value added, agricultural employment and agricultural exports in determining GDP of Turkey. For this purpose, we used annual data which covers over the period of 1970-2010, and employed Dynamic OLS (DOLS) approach developed by Stock and Watson (1993). Our empirical findings show that the variables being examined are co-integrated and, while agricultural value added has a statistically significant positive effect on GDP, both agricultural employment and agricultural exports have statistically significant negative effects on GDP.