Toward Sustainable Input Pricing in Agriculture

The Sectoral Impact of Asymmetric Monetary Policy in Türkiye

Bibliographic Data

ID12308372
AuthorsHasan Gökhan Doğan (0000-0002-5303-1770, Department of Agricultural Economics, Faculty of Agriculture Kırşehir Ahi Evran University Kırşehir Türkiye, corresponding author), Emel Mirza (0000-0002-5009-2666, Department of Economics, Faculty of Economics and Administrative Sciences Selçuk University Konya Türkiye), Ali Ganiyusufoğlu (0000-0002-8737-4691, Doganhisar Vocational School, Selçuk University Konya Türkiye), Zeki Bayramoğlu (0000-0003-3258-3848, Department of Agricultural Economics, Faculty of Agriculture Selçuk University Konya Türkiye), Serhan Candemir (0000-0003-4248-7024, Department of Agricultural Economics, Faculty of Agriculture Malatya Turgut Özal University Malatya Türkiye), Ayşen Edirneligil (0000-0002-0851-1740, Department of Economics, Faculty of Economics and Administrative Sciences Selçuk University Konya Türkiye)
Year2025
Volume34
IssueS2
Pages493-504
Publication date2025-10-25
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSustainable Development (JOURNAL)
Journal identifiersISSN: 0968-0802 • E-ISSN: 1099-1719
PublisherWiley (PUBLISHER • GB)
DOI10.1002/sd.70365
OpenAlexW4415543389
LanguageEN
References cited49

This study investigates the asymmetric effects of monetary policy instruments on agricultural input prices in Türkiye, a developing economy. Using monthly data from 2015 to 2024, the analysis focuses on key variables including the exchange rate, consumer price index (CPI), policy rate, reserve requirement ratio, and rediscount rate. Asymmetric fully modified ordinary least squares (FMOLS) and impulse‐response analyses reveal that positive exchange rate shocks significantly and persistently increase input costs, highlighting the sector's import dependence and vulnerability. Inflation and policy rate hikes also raise costs, but declines in these variables do not produce equally strong reductions—indicating asymmetric effects. Similar patterns are observed for other monetary tools. The findings emphasize that both the direction and magnitude of macroeconomic shocks matter for agricultural input pricing. Therefore, monetary policy must account for sector‐specific sensitivities and transmission mechanisms. In critical sectors like agriculture, tailored policy designs are essential for stabilizing costs, supporting food security, and enhancing rural economic resilience

Agriculture · Exchange rate · Index (typography · Inflation (cosmology · Interest rate · Monetary policy · Monetary transmission mechanism · Ordinary least squares · Economics of Agriculture and Food Markets · Market Dynamics and Volatility · Monetary Policy and Economic Impact

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