How do diesel price fluctuations affect economic convergence over agriculture sector among OECD countries?
Yükleniyor...
Tarih
2020
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Mehmet Songur
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
Energy/oil trade has formed large part of the World trade since its usage has been increased in time and became an important factor of production in the World via an important input in agricultural sector along with usage of intensive mechanization in it. Therefore, fluctuations in diesel prices in the World have influenced the cost of production up and down. In oil importing developed and developing countries, another reason of the fluctuations in diesel prices following up increases in world oil price has been induced by higher tax on oil levied by incumbent governments. On the one side, higher tax on oil increases tax income for government; however, this high tax rate negatively can affect agricultural sector in terms of agricultural products’ export and import rate, added value, prices of these products etc. In regard of our case in the paper, levied tax rate creates different diesel prices in the member countries of the OECD. The aim of this study initially is to test the relationship between diesel prices and agricultural productivity and then, to search for another chain relationship between the productivity and economic growth rate in developed and developing countries in the OECD. In short, we propose a study which analysis how diesel price fluctuations can affect economic convergence across OECD countries in terms of agricultural productivity in a multifaceted sense. For this reason, we assemble data for a panel of OECD countries for 19982009 to test the variables such as diesel prices, tax rates on diesel, quantity indices of agricultural products’ export and import, agricultural good prices, and economic growth rates. It is important to determine how agricultural policy convergences have affected macroeconomic convergences with the sample covering before and after the crises period (from the early 1990s to 2008). We use the World Bank, Eurostat, and FAO databases from different sources. However, by any account, conventional economic wisdom suggests that growth and increasing integration in the body of OECD leads to some sort of economic convergence. This convergence should occur in terms of percapita output and other important macroeconomic variables, at least in the conditional sense of Barro and Sala-i-Martin (1992, 1995), i. e. controlling for heterogeneity across countries. We conclude that tax levy on diesel oil has affected agricultural products export and import ratios of some countries in the OECD. Hence, this study carries out an important role for policy guidance for future.
Açıklama
Anahtar Kelimeler
Diesel price fluctuations, Economic convergence, Sector of agriculture, OECD
Kaynak
Bulletin of Economic Theory and Analysis
WoS Q Değeri
Scopus Q Değeri
Cilt
5
Sayı
2
Künye
Aktaş, E., Değirmen, S., Sofracı, İ., E. & Songur, M. (2020). How do diesel price fluctuations affect economic convergence over agriculture sector among OECD countries?. Bulletin of Economic Theory and Analysis, 5(2), 115-131
