Do Agricultural Supports Affect Production? A Panel ARDL Analysis of Turkey

One of the controversial issues in trade negotiations carried out with World Trade Organization deals agricultural supports related to production, which is claimed disrupt market system by creating an imbalance supply and demand domestic cause world contraction. In this context, aim study examine production effect deficiency payments land-based direct widely used Turkey. The conducts a panel autoregressive distributed lag analysis for 11 selected products (wheat, corn, sunflower, seed cotton, paddy, soybean, canola, safflower, tea, dried beans, olives) 2002-2019 period. findings from are as follows: i) Increases increase short long run production. However, have less on ii) While increases input prices negative opposite. iii) Agricultural product price not important indicator producers. This finding can be explained fact that farmers accept complement variable their decisions. iv) minimum wage added model based Turkey’s structural characteristics impact v) No statistically significant relationship exists between number tractors represent mechanization amount