Scale and Elasticity Properties of Turkish Agricultural Production Function: Political Economy Approach

Abstract

In this study, factor elasticities, value of marginal products, and the return to scale are estimated for Turkish agricultural production function by employing Turkish Regional Statistics for the period of 1994-2003. Results imply that there is an increasing return to scale, land has highest factor elasticity, and tractor has highest value of marginal product. We claim that the presence of increasing returns to scale is related to fragmented and scattered land, and small-scale farming in Turkey. Moreover, we claim that the high output and employment share of agriculture are related to populist corporatist politics. In this study, we also emphasize that reasons behind rural areas to be overpopulated are also reasons behind fragmented and small-scale farming, and sluggish movement of agricultural labor to other sectors.