Analysis of the Relationships Between Agricultural Producer Protection and Macroeconomic Variables in Fragile Five Countries by Bootstrap Panel Causality Test

Şerif Canbay

Makale detayları

Analysis of the Relationships Between Agricultural Producer Protection and Macroeconomic Variables in Fragile Five Countries by Bootstrap Panel Causality Test

Yazarlar:

Şerif Canbay

Yayıncı:

Ankara University

Dergi:

Journal of Agricultural Sciences Vol.29 Issue 2, pp.380-394

Belge Tipi:

Makale

Yayın Tarihi:

3/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001285916

pISSN:

1300-7580

Anahtar kelimeler:

Özet:

 Agriculture is a leading sector that provides capital accumulation to sustain the economic development processes of developing countries economies. The low supply and demand elasticity of agricultural products cause fluctuations in agricultural product prices and producer income. Therefore, the first negative reflection of price instability that may arise from fluctuations is generally observed in farmers. Hence, policymakers intervene in the agricultural sector to reduce the instability in agricultural product prices and protect agricultural producers against these effects, as well as the capital accumulation needed for growth and development. Based on this background, this study analyzes the causality relationship between agricultural producer protection PP and the macroeconomic variables of Brazil, Indonesia, India, Türkiye, and South Africa, which are referred to as the Fragile Five countries, using the panel bootstrap panel causality test developed by Kónya 2006 with the data between 2000 and 2020. The study findings differ among the countries in the sample. It was determined that there are causality relationships between agricultural PP and economic growth, economic development and inflation variables in all countries involved in this study. Although it is difficult to generalize the main findings of the study to all countries in the sample, it can be concluded that economic growth, economic development and inflation, and agricultural PP variables interact with one another. The study also concludes that the protective and supportive measures for agriculture, a significant sector for the macroeconomic performance indicators of the countrys economies, are too important to be neglected.

 Agriculture is a leading sector that provides capital accumulation to sustain the economic development processes of developing countries economies. The low supply and demand elasticity of agricultural products cause fluctuations in agricultural product prices and producer income. Therefore, the first negative reflection of price instability that may arise from fluctuations is generally observed in farmers. Hence, policymakers intervene in the agricultural sector to reduce the instability in agricultural product prices and protect agricultural producers against these effects, as well as the capital accumulation needed for growth and development. Based on this background, this study analyzes the causality relationship between agricultural producer protection PP and the macroeconomic variables of Brazil, Indonesia, India, Türkiye, and South Africa, which are referred to as the Fragile Five countries, using the panel bootstrap panel causality test developed by Kónya 2006 with the data between 2000 and 2020. The study findings differ among the countries in the sample. It was determined that there are causality relationships between agricultural PP and economic growth, economic development and inflation variables in all countries involved in this study. Although it is difficult to generalize the main findings of the study to all countries in the sample, it can be concluded that economic growth, economic development and inflation, and agricultural PP variables interact with one another. The study also concludes that the protective and supportive measures for agriculture, a significant sector for the macroeconomic performance indicators of the countrys economies, are too important to be neglected.

 Agriculture is a leading sector that provides capital accumulation to sustain the economic development processes of developing countries economies. The low supply and demand elasticity of agricultural products cause fluctuations in agricultural product prices and producer income. Therefore, the first negative reflection of price instability that may arise from fluctuations is generally observed in farmers. Hence, policymakers intervene in the agricultural sector to reduce the instability in agricultural product prices and protect agricultural producers against these effects, as well as the capital accumulation needed for growth and development. Based on this background, this study analyzes the causality relationship between agricultural producer protection PP and the macroeconomic variables of Brazil, Indonesia, India, Türkiye, and South Africa, which are referred to as the Fragile Five countries, using the panel bootstrap panel causality test developed by Kónya 2006 with the data between 2000 and 2020. The study findings differ among the countries in the sample. It was determined that there are causality relationships between agricultural PP and economic growth, economic development and inflation variables in all countries involved in this study. Although it is difficult to generalize the main findings of the study to all countries in the sample, it can be concluded that economic growth, economic development and inflation, and agricultural PP variables interact with one another. The study also concludes that the protective and supportive measures for agriculture, a significant sector for the macroeconomic performance indicators of the countrys economies, are too important to be neglected.

 Agriculture is a leading sector that provides capital accumulation to sustain the economic development processes of developing countries economies. The low supply and demand elasticity of agricultural products cause fluctuations in agricultural product prices and producer income. Therefore, the first negative reflection of price instability that may arise from fluctuations is generally observed in farmers. Hence, policymakers intervene in the agricultural sector to reduce the instability in agricultural product prices and protect agricultural producers against these effects, as well as the capital accumulation needed for growth and development. Based on this background, this study analyzes the causality relationship between agricultural producer protection PP and the macroeconomic variables of Brazil, Indonesia, India, Türkiye, and South Africa, which are referred to as the Fragile Five countries, using the panel bootstrap panel causality test developed by Kónya 2006 with the data between 2000 and 2020. The study findings differ among the countries in the sample. It was determined that there are causality relationships between agricultural PP and economic growth, economic development and inflation variables in all countries involved in this study. Although it is difficult to generalize the main findings of the study to all countries in the sample, it can be concluded that economic growth, economic development and inflation, and agricultural PP variables interact with one another. The study also concludes that the protective and supportive measures for agriculture, a significant sector for the macroeconomic performance indicators of the countrys economies, are too important to be neglected.

Makale detayları

Analysis of the Relationships Between Agricultural Producer Protection and Macroeconomic Variables in Fragile Five Countries by Bootstrap Panel Causality Test

Yazarlar:

Şerif Canbay

Yayıncı:

Ankara University

Dergi:

Journal of Agricultural Sciences Vol.29 Issue 2, pp.380-394

Belge Tipi:

Makale

Yayın Tarihi:

3/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001285916

pISSN:

1300-7580

Agricultural economics

Support policy

Subsidies

Food shortages

Economic growth

Inflation

Sayı

Makale detayları

Analysis of the Relationships Between Agricultural Producer Protection and Macroeconomic Variables in Fragile Five Countries by Bootstrap Panel Causality Test

Yazarlar: Şerif Canbay

Yayıncı: Ankara University

Dergi: Journal of Agricultural Sciences Vol.29 Issue 2, pp.380-394

Belge Tipi: Makale

Yayın Tarihi: 3/2023

Belge Dili: İngilizce

Document ID (Org No.): 2001285916

pISSN: 1300-7580

Agricultural economics

Support policy

Subsidies

Food shortages

Economic growth

Inflation

Sayı

Yazarlar:

Şerif Canbay

Yayıncı:

Ankara University

Dergi:

Journal of Agricultural Sciences Vol.29 Issue 2, pp.380-394

Belge Tipi:

Makale

Yayın Tarihi:

3/2023

Belge Dili:

İngilizce

Document ID (Org No.):

2001285916

pISSN:

1300-7580