The Influence of Financial Markets on the Arable Farmland Markets in Türkiye
Harun Tanrıvermiş, Monsurat Ayojimi Salami, Yesim Tanrıvermiş
Our study, with its practical implications, delves into the influence of financial market indicators, such as bank credit volume (BCV), loan-to-land value (LTV), and GNP per capita (GNP), on the Arable farmland markets in Türkiye. Using robust quantitative research methods and annual data from 1970-2022, we employ the ARDL model and Granger causality for analysis. The study variables include Turkish arable farmland in hectares, Agriculture loan volume medium and long-term credit land, Agricultural loan volume annual operating credit, and Farm loan interest rate medium and long-term credit land. Our findings reveal a significant negative relationship between financial market loans and credit financing Turkish Arable farmland. GNP per capita contributes relatively little to the national economy during the study period. Despite the modest impact of farm interest loans, the interest rate indirectly influences Turkish Arable farmland. These findings, with their practical implications, are poised to significantly inform government land policy decisions, providing policymakers with invaluable insights into land and financial markets in Türkiye. Policymakers and stakeholders can leverage these insights in their decision-making processes.
Event: World Bank Land Conference 2024 - Washington
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