Toda-yamamoto causality test among agricultural employment, agricultural foreign investment incentives and agricultural domestic investment incentives in Turkey

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Sönmez H.

XXII. International Balkan and Near Eastern Congress Series on Economics, Business and Management, Ohrid, Makedonya, 12 - 13 Ekim 2024, ss.1-10, (Tam Metin Bildiri)

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Basıldığı Şehir: Ohrid
  • Basıldığı Ülke: Makedonya
  • Sayfa Sayıları: ss.1-10
  • Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

Investment incentives are important not only for economic growth and development but also for agricultural employment. The significance of agricultural investment incentives, which is growing for both developed and developing countries, is especially crucial with the increasing global population. It also encourages foreign and domestic investors to invest in specific sectors. The main objective of this study is to investigate the causal relationship between agricultural employment and investment incentives for agricultural projects with certified domestic and foreign capital in Turkey for the years 2001-2023. The stationarity levels of the variables are being assessed using two different unit root tests. The causal relationship between variables is analyzed using the Toda Yamamoto causality test, which are determined to be stationary at different levels according to both unit root tests. Causality test results indicate that a bidirectional causal relationship between agricultural employment and domestic capital-based agricultural investment incentives. This finding indicates that agricultural investment incentives, which are based on domestic capital, play a role in increasing agricultural employment in Turkey. However, there is no causal relationship between agricultural investment incentives based on foreign capital and agricultural employment. This finding denotes that agricultural investment incentives based on foreign capital are not effective on agricultural employment. According to the results of the study, it is thought that the proportion of agricultural investment incentives based on foreign capital should be increased to enhance agricultural employment. Furthermore, it is believed that agricultural investment incentive policies based on foreign capital should be reconsidered. The effectiveness of investment incentives provided to the agricultural sector on a national scale should be increased, provided that they are compatible with the competitive structure of the agricultural sector.