Reconsidering agricultural credits and agricultural production nexus from a global perspective
Abstract Access to credit has been a key component in protecting a country's agriculture sector against uncertainties and climate‐related shocks. Agricultural credits may also increase both agribusiness sectors' and farming‐related commercial activities' exposure to world markets. Thi...
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| Format: | Article |
| Language: | English |
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Wiley
2024-01-01
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| Series: | Food and Energy Security |
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| Online Access: | https://doi.org/10.1002/fes3.504 |
| _version_ | 1827340712867266560 |
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| author | Dicle Ozdemir |
| author_facet | Dicle Ozdemir |
| author_sort | Dicle Ozdemir |
| collection | DOAJ |
| description | Abstract Access to credit has been a key component in protecting a country's agriculture sector against uncertainties and climate‐related shocks. Agricultural credits may also increase both agribusiness sectors' and farming‐related commercial activities' exposure to world markets. This study aims to investigate agricultural credits' short‐run and long‐run effects on agricultural production using control variables such as foreign direct investments, inflation rate, and government expenditures. We found that credits to agriculture affect value‐added agriculture positively in the long‐run; specifically, when agricultural credits increase by 1%, value‐added agriculture will increase by 0.19%; that is, an increase in credits to the agricultural sector leads to a significant increase in value‐added agriculture, while FDI and government size both reduce agricultural value‐added across countries. The findings of the pairwise causation test show that bidirectional causal links exist among almost all variables, validating feedback among agricultural value‐added, credit to agriculture, FDI, government expenditures, and inflation. |
| first_indexed | 2024-03-07T21:24:28Z |
| format | Article |
| id | doaj.art-03d500055cab4a098fcf2810b23f523c |
| institution | Directory Open Access Journal |
| issn | 2048-3694 |
| language | English |
| last_indexed | 2024-03-07T21:24:28Z |
| publishDate | 2024-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Food and Energy Security |
| spelling | doaj.art-03d500055cab4a098fcf2810b23f523c2024-02-27T06:19:25ZengWileyFood and Energy Security2048-36942024-01-01131n/an/a10.1002/fes3.504Reconsidering agricultural credits and agricultural production nexus from a global perspectiveDicle Ozdemir0Faculty of Economics and Administrative Sciences Mugla Sitki Kocman University Mugla TurkiyeAbstract Access to credit has been a key component in protecting a country's agriculture sector against uncertainties and climate‐related shocks. Agricultural credits may also increase both agribusiness sectors' and farming‐related commercial activities' exposure to world markets. This study aims to investigate agricultural credits' short‐run and long‐run effects on agricultural production using control variables such as foreign direct investments, inflation rate, and government expenditures. We found that credits to agriculture affect value‐added agriculture positively in the long‐run; specifically, when agricultural credits increase by 1%, value‐added agriculture will increase by 0.19%; that is, an increase in credits to the agricultural sector leads to a significant increase in value‐added agriculture, while FDI and government size both reduce agricultural value‐added across countries. The findings of the pairwise causation test show that bidirectional causal links exist among almost all variables, validating feedback among agricultural value‐added, credit to agriculture, FDI, government expenditures, and inflation.https://doi.org/10.1002/fes3.504agricultural creditsagricultural productionforeign direct investmentgovernment expenditures |
| spellingShingle | Dicle Ozdemir Reconsidering agricultural credits and agricultural production nexus from a global perspective Food and Energy Security agricultural credits agricultural production foreign direct investment government expenditures |
| title | Reconsidering agricultural credits and agricultural production nexus from a global perspective |
| title_full | Reconsidering agricultural credits and agricultural production nexus from a global perspective |
| title_fullStr | Reconsidering agricultural credits and agricultural production nexus from a global perspective |
| title_full_unstemmed | Reconsidering agricultural credits and agricultural production nexus from a global perspective |
| title_short | Reconsidering agricultural credits and agricultural production nexus from a global perspective |
| title_sort | reconsidering agricultural credits and agricultural production nexus from a global perspective |
| topic | agricultural credits agricultural production foreign direct investment government expenditures |
| url | https://doi.org/10.1002/fes3.504 |
| work_keys_str_mv | AT dicleozdemir reconsideringagriculturalcreditsandagriculturalproductionnexusfromaglobalperspective |