SavedAdd your journal

Journals / Tarım Ekonomisi Dergisi / 2026 / Cilt: 32 Sayı: 1

The impact of agricultural loans on economic growth and financial development

Tarımsal kredilerin ekonomik büyüme ve finansal gelişme üzerindeki etkisi

Adalet Hazar(Başkent Üniversitesi)0000-0002-1483-8360
Mesut Doğan(Bilecik Şeyh Edebali Üniversitesi)0000-0001-6879-1361
Şenol Babuşcu(Başkent Üniversitesi)0000-0003-2870-6358
Zeycan Yalçıner(Başkent Üniversitesi)0009-0005-3418-4527
Pages
109–118
Publication Date
2026-06-26
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Findings: The results indicate a bidirectional and mutual causal relationship between agricultural credit, financial development, and economic growth.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Purpose: This study aims to analyze the effects of agricultural loans on economic growth and financial development based on data obtained from 20 different countries for the period 2005-2022.
📊
Key Findings & Data:Agricultural credit contributes significantly to deepening the financial system and accelerating economic growth by increasing the production capacity of the agricultural sector.
💡
Conclusion & Impact:Findings: The results indicate a bidirectional and mutual causal relationship between agricultural credit, financial development, and economic growth.
🔬Design:Araştırma Makalesi
📍Scope:2005-2022 Verileri
⚙️Variables:Tarımsal krediler · ekonomik büyüme · finansal gelişme

Abstract

Purpose: This study aims to analyze the effects of agricultural loans on economic growth and financial development based on data obtained from 20 different countries for the period 2005-2022. The main objective of the study is to reveal how agricultural loans play a role at the macroeconomic level, not limited to increasing agricultural production. Design/methodology/approach: The Dumitrescu-Hurlin panel causality analysis method was applied to the panel data set. This method allows for a detailed examination of the causality relationships between variables, taking into account cross-country heterogeneity. Findings: The results indicate a bidirectional and mutual causal relationship between agricultural credit, financial development, and economic growth. Agricultural credit contributes significantly to deepening the financial system and accelerating economic growth by increasing the production capacity of the agricultural sector. Similarly, financial development and economic growth are also observed to affect the volume of agricultural credit. Originality/value: This study gives significant contributions to the literature by examining the macroeconomic effects of agricultural credit from a multifaceted approach across 20 different countries. It has unique value in revealing the two-way relationship between the role of agricultural credit in economic growth and financial development. Furthermore, it highlights the importance of considering short-term dynamics for policymakers.

Özet

Amaç: Bu çalışma, 2005-2022 yılları arasındaki dönem için 20 farklı ülkeden elde edilen veriler doğrultusunda, tarımsal kredilerin ekonomik büyüme ve finansal gelişme üzerindeki etkilerini analiz etmeyi amaçlamaktadır. Tarımsal kredilerin yalnızca tarımsal üretimi artırmakla sınırlı kalmayıp, makroekonomik düzeyde nasıl bir rol üstlendiğini ortaya koymak çalışmanın temel hedefidir. Tasarım / metodoloji / yaklaşım: Çalışmada, panel veri seti üzerinde Dumitrescu-Hurlin panel nedensellik analizi yöntemi uygulanmıştır. Bu yöntem sayesinde ülkeler arası heterojenlik dikkate alınarak, değişkenler arasındaki nedensellik ilişkileri yönleriyle birlikte detaylı bir şekilde incelenmektedir. Bulgular: Elde edilen bulgular, tarımsal krediler ile finansal gelişme ve ekonomik büyüme arasında karşılıklı etkileşime dayalı çift yönlü bir nedensellik ilişkisinin mevcut olduğunu göstermektedir. Tarımsal krediler, tarım sektörünün üretim kapasitesini artırarak, finansal sistemin derinleşmesine ve ekonomik büyümenin hızlanmasına anlamlı katkılar sunmaktadır. Aynı şekilde, finansal gelişme ve ekonomik büyümenin de tarımsal kredi hacmini etkilediği gözlenmektedir. Özgünlük / değer: Bu çalışmada, tarımsal kredilerin makroekonomik etkilerinin çok yönlü bir yaklaşımla ele alınıp, 20 farklı ülke üzerinden incelenmesi literatüre önemli katkılar sunmaktadır. Tarımsal kredilerin ekonomik büyüme ve finansal gelişme üzerindeki rolüne dair çift yönlü ilişkiyi ortaya koyması bakımından özgün bir değer taşımaktadır. Ayrıca, politika yapıcılar için kısa vadeli dinamiklerin göz önünde bulundurulmasının önemine dikkat çekmektedir.

🔖

Cite This Article

Hazar, A., Doğan, M., Babuşcu, Ş., Yalçıner, Z. (2026). The impact of agricultural loans on economic growth and financial development. Tarım Ekonomisi Dergisi, Cilt: 32 Sayı: 1, 109–118. https://doi.org/10.24181/tarekoder.1799418

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (39)

  1. Abbasi, R., Martinez, P., & Ahmad, R. (2022), The digitization of agricultural industry - A systematic literature review on agriculture 4.0. Smart Agricultural Technology, 2, 100042.
  2. Anthony, Enoma, (2010), Agricultural Credit and Economic Growth in Nigeria: An Empirical Analysis. Business and Economics Journal, Vol:2010 No: BEJ-14.
  3. Balana, B. B., & Oyeyemi, M. A. (2022), Agricultural credit constraints in smallholder farming in developing countries: Evidence from Nigeria. World Development Sustainability, 1, 100012.
  4. Cole, S. (2009). Fixing market failures or fixing elections? Agricultural credit in India. American Economic Journal: Applied Economics, 1(1), 219-250.
  5. Cömertler Şimşir, N. (2012), An econometric analysis of the relationships between economic growth and agricultural credits for propoor growth in Turkey. International Journal of Social Sciences and Humanity Studies, 4(2), pp.355-364.
  6. Das, A., Senapati, M., & John, J. (2009), Impact of agricultural credit on agriculture production: an empirical analysis in India. Reserve Bank of India Occasional Papers, 30(2), pp.75-107.
  7. Dumitrescu, E. I., & Hurlin, C. (2012), Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), pp.1450–1460. https://doi.org/10.1016/j.econmod.2012.02.014
  8. FAO (Food and Agriculture Organization). (2017), The future of food and agriculture-Trends and challenges. Rome: FAO, available at: https://www.fao.org/3/i6583e/i6583e.pdf
  9. FAO (Food and Agriculture Organization). (2024), Credit to Agriculture: Global and Regional Trends 2015–2024. FAOSTAT Analytical Briefs. Rome: Food and Agriculture Organization of the United Nations.
  10. Feder, G., Lau, L. J., Lin, J. Y., & Luo, X. (1990), The relationship between credit and productivity in Chinese agriculture: A microeconomic model of disequilibrium. American Journal of Agricultural Economics, 72(5), pp.1151–1157.
  11. Goldsmith, R. W. (1969), Financial structure and development. Yale University.
  12. Goodhart, C. A. E. (1998), Financial Development and Economic Growth.
  13. Guo, J., Chen, L., & Kang, X. (2024), Digital inclusive finance and agricultural green development in China: A panel analysis (2013–2022). Finance Research Letters, 69, 106173.
  14. Hartarska, V., Nadolnyak, D., & Shen, X. (2015), Agricultural credit and economic growth in rural areas. Agricultural Finance Review, 75(3), pp.302-312.
  15. Hussain, A., & Thapa, G. B. (2012). Smallholders' access to agricultural credit in Pakistan. Food Security, 4, 73-85.
  16. ILO, Agriculture; plantations; Other Rural Sectors, International Labor Organization, 2021. Retrieved from Agriculture; plantations; other rural sectors (ilo.org) on April 5, 2022.
  17. Jia, X., Xiang, C., & Huang, J. (2013), Microfinance, self-employment, and entrepreneurs in less developed areas of rural China. China Economic Review, 27, pp.94-103.
  18. Khan, Naushad et al. (2011), Review of Past Literature on Agriculture Credit in Rural Area of Pakistan. Sarhad Journal of Agriculture, 27(1), pp.103-110.
  19. Khandker, S. R., & Koolwal, G. B. (2015), How has microcredit supported agriculture? Evidence using panel data from Bangladesh. Agricultural Economics. http://dx.doi.org/10.1111/agec.12185.
  20. Khwaja, A. I., & Mian, A. (2005). Do lenders favor politically connected firms? Rent provision in an emerging financial market. The Quarterly Journal of Economics, 120(4), 1371-1411.
  21. King, R. G., & Levine, R. (1993), Finance and growth: Schumpeter might be right. The Quarterly Journal of Economics, 108(3), pp.717–737.
  22. Kitole, F. A., Mkuna, E., & Sesabo, J. K. (2024), Digitalization and agricultural transformation in developing countries: Empirical evidence from Tanzania agriculture sector. Smart Agricultural Technology, 7, 100379.
  23. Levine, R. (2005), Finance and growth: Theory and evidence. In P. Aghion & S. Durlauf (Eds.), Handbook of Economic Growth (Vol. 1A, pp. 865–934). Elsevier.
  24. Narayanan, S. (2016), The productivity of agricultural credit in India. Agricultural Economics, 47(4), pp.399-409.
  25. Okafor, C. A. (2020), Commercial banks credit and agricultural development in Nigeria. International Journal of Business & Law Research, 8(3), pp.89-99.
  26. Owuor, G., & Shem, A. O. (2012), Informal credit and factor productivity in Africa: does informal credit matter?
  27. Parivash, G. H., & Torkamani, J. (2008), Effects of financial markets development on growth of agricultural sector.
  28. Peng, Y., Latief, R., & Zhou, Y. (2021), The relationship between agricultural credit, regional agricultural growth, and economic development: The role of rural commercial banks in Jiangsu, China. Emerging Markets Finance and Trade, 57(7), pp.1878-1889.
  29. Pesaran, M. H. (2004), General diagnostic tests for cross section dependence in panels. CESifo Working Paper Series No. 1229. https://doi.org/10.2139/ssrn.572504
  30. Pesaran, M. H. (2007), A simple panel unit root test in the presence of cross‐section dependence. Journal of Applied Econometrics, 22(2), pp.265–312. https://doi.org/10.1002/jae.951
  31. Saleem, M. A., & Jan, F. A. (2011), The impact of agricultural credit on agricultural productivity in Dera Ismail Khan (District) Khyber Pakhtonkhawa Pakistan. European Journal of Business and Management, 3(2), pp.38-44.
  32. Shoji, M., Aoyagi, K., Kasahara, R., Sawada, Y., & Ueyama, M. (2012), Social capital formation and credit access: Evidence from Sri Lanka. World development, 40(12), pp.2522-2536.
  33. Solow, R. M. (1956), A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), pp.65-94.
  34. Soubbotina, T. P., & Sheram, K. (2000), Beyond economic growth: Meeting the challenges of global development. World Bank Publications, World Bank, Washington DC.
  35. Sriram, M. S. (2007), Productivity of rural credit: A review of issues and some recent literature. International Journal of http://dx.doi.org/10.1177/097300520800300204 Rural Management, 3(2), pp.245-268.
  36. Von Pischke, J. D., & Adams, D. W. (1980). Fungibility and the design and evaluation of agricultural credit projects. American Journal of Agricultural Economics, 62(4), 719-726.
  37. World Bank, Agriculture and Food, (2022). Retrieved on April 17, 2022, available at: https://www.worldbank.org/en/topic/agriculture/overview#1.
  38. Yadav, P., & Sharma, A. K. (2015), Agriculture credit in developing economies: A review of relevant literature. International Journal of Economics and Finance, 7(12), pp.219-244.
  39. Zhang, H., Wang, Y., & Wang, X. (2024), The impact of financial deepening on agricultural production: A household-level analysis of BigTech finance. Economic Analysis and Policy, 84, pp.57-77.