15th International Congress on Eurasian Economies, İzmir, Türkiye, 19 - 20 Eylül 2023, ss.321-330
Recently, the rising food prices have contributed to
inflation in Turkey. It has been crucial to analyze the interconnections
between the food sector and other sectors of the economy to understand these
price dynamics. The aim of this study is to determine the production structure
and linkages of the Turkish food sector with other sectors utilizing
input-output analysis. The input-output table for the study has provided by the
World Input-Output Database. The findings indicate that the food sector
requires 0.6477 units of input from other sectors to produce one unit of
output. The direct forward linkage coefficient, which measures the input
required by other sectors from the food sector, is estimated at 0.4385. The
“hosting and catering service activities” sector is identified as the most
demanding sector for the food sector’s output, after its own sector, with a
share of 0.1267. This finding demonstrates a significant input flow from the
food sector to the “accommodation and food service” sector. The total backward
and forward linkages for the food sector are computed as 2.0381 and 1.6833 respectively.
Therefore, indicating changes in food sector production has significantly
influenced other sectors. Both the total backward linkage index value (1.3409)
and the total forward linkage index value (1.1075) exceed a certain threshold.
This result reveals that the food sector key role in the Turkish economy with
push and pull effect on other sectors. It is recommended that prioritize
incentive policies that have strong linkages with the food sector and evaluate
investment decisions accordingly.