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Keywords:

  • C11;
  • C21;
  • Q18;
  • R11;
  • Agricultural output;
  • Bayesian spatial model;
  • Spatial heterogeneity;
  • Policy reform;
  • Turkey

Abstract

This study evaluates spatial variation in the relationship between agricultural output and input use across Turkey. The potential impact of the national agricultural policy reform introduced in 2001 on the spatial variation in agricultural output elasticities across the country was explored. By applying a spatial production function to the province-level data in 2000 and 2007, spatial heterogeneity in the variance of provincial total factor productivity and the input factor-output elasticities was identified across the country. Results show that the disparities in agricultural activities and geographic conditions affected return from input factors. Empirical findings from a spatial spillover model also suggest that changes in the input factor-output elasticities varied significantly across Turkey between 2000 and 2007, after the policy reform. Results suggest that future policy reform that recognizes regional comparative advantage through understanding the geographic heterogeneity of the agricultural sector is important for enhancing Turkey's agricultural output.