The impact of agricultural input costs on food prices in Turkey: A case study

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Isik S., ÖZBUĞDAY F. C.

AGRICULTURAL ECONOMICS-ZEMEDELSKA EKONOMIKA, cilt.67, sa.3, ss.101-110, 2021 (SCI-Expanded, SSCI, Scopus) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 67 Sayı: 3
  • Basım Tarihi: 2021
  • Doi Numarası: 10.17221/260/2020-agricecon
  • Dergi Adı: AGRICULTURAL ECONOMICS-ZEMEDELSKA EKONOMIKA
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, Agricultural & Environmental Science Database, CAB Abstracts, Food Science & Technology Abstracts, Veterinary Science Database, Directory of Open Access Journals
  • Sayfa Sayıları: ss.101-110
  • Anahtar Kelimeler: autoregressive-distributed lag (ARDL), food inflation, fully modified ordinary least square (FMOLS), structural breaks, time series analysis
  • Açık Arşiv Koleksiyonu: AVESİS Açık Erişim Koleksiyonu
  • Ankara Üniversitesi Adresli: Hayır

Özet

Food price inflation has been a significant subject of debate in Turkey since food prices soared in 2018. The study examines the linkage between agricultural input prices and food prices in Turkey by using quantitative method approaches with the monthly data spanning from 2015-M01 to 2020-M01. A co-integration analysis is performed using the autoregressive-distributed lag (ARDL) bounds test approach and Maki co-integration test with structural breaks. Additionally, the fully modified ordinary least square (FMOLS), dynamic ordinary least squares (DOLS), and canonical co-integrating regression (CCR) are applied to verify the results of the ARDL approach. The analysis demonstrates a significant, long-running relationship between agricultural input prices and food prices in Turkey. The long-run agricultural input price elasticities are found to be in the range of 1.30-1.36.