International Congress on Sustainable Agriculture, Iğdır, Türkiye, 1 - 03 Mart 2024, ss.186-203
The agricultural sector is important for economic growth and
development in developing countries. Therefore, it is necessary to support the
agricultural sector financially, and agricultural loans provide this support.
Through agricultural loans, farmers can sustain their agricultural activities
by accessing the necessary capital.The aim of this study is to investigate the
effect of agricultural loans provided by public, private, and foreign banks on
agricultural GDP in Turkey. The quarterly time series data has obtained cover
the period from 2005:Q1 to 2023:Q3 for this purpose. The time series that have
included seasonality have been incorporated into the model after being adjusted
for seasonal effects. Initially, the stationarity of the series has been
examined using the Augmented Dickey-Fuller unit root test. Then, the short run
and long run relationships have been assessed using the Autoregressive
Distributed Lag Bound Test approach. According to the findings obtained from
the study, a positive relationship has been identified between agricultural
loans provided by both public banks and foreign banks and the agricultural GDP.
On the other hand, no significant relationship has been found between loans
provided by private banks and agricultural GDP. Moreover, the error correction
model coefficient has been found negative and significant statistically. This
result indicates that short run deviations have converged to the long ruın
coefficient in 2.33 periods. Also, agricultural GDP has increased by 0.12% when
agricultural loans provided by public banks have increased by 1%. Similarly, a
1% increase in foreign bank loans has resulted in a 0.03% increase in
agricultural GDP. Furthermore, the impact of agricultural loans provided by
public banks on agricultural GDP has been higher compared to loans provided by
foreign banks. It is suggested that increasing the share of agricultural loans
provided by foreign banks and encouraging private banks has been necessary for
the agricultural sector.