The impact of agricultural supports on economic growth in OECD countries: A dynamic panel analysis from the perspective of the national economy model

Doğan, Emrah; Akbay, Hatice; Alihodžić, Almir

doi:10.22059/jcountst.2026.411668.1456

The impact of agricultural supports on economic growth in OECD countries: A dynamic panel analysis from the perspective of the national economy model

Document Type : Original

Authors

¹ Department of International Trade and Finance; Faculty of Economic, Administrative and Social Sciences; Istanbul Gelisim University; Istanbul; Türkiye.

² Department of Finance and Accounting, Faculty of Economics, Gaziantep University, Gaziantep, Türkiye.

³ Department of Finance and Accounting, Faculty of Economics, University of Zenica, Zenica, Bosnia and Herzegovina.

10.22059/jcountst.2026.411668.1456

Abstract

This study examines the impact of agricultural supports on economic growth using a dynamic panel data approach and a comprehensive dataset covering OECD countries from 2000 to 2021. Recognizing the lagged effects associated with economic growth, the analysis emphasizes the long-term and sustained influence of agricultural support measures. The findings reveal that agricultural subsidies have a positive and statistically significant effect on economic growth. These results demonstrate that public support for the agricultural sector not only increases sectoral production but also functions as a crucial policy tool for stimulating overall economic activity and growth. The findings are consistent with the National Economic Model (NEM) developed by Baş (2018), which, within a production-oriented growth framework, identifies the agricultural sector as strategic and advocates for the sustainable strengthening of domestic production, income growth, and domestic demand through public support. Thus, the study corroborates the multiplier effect of agricultural supports on national income growth and highlights the importance of active state involvement in the production process to foster economic growth. The empirical evidence suggests that agricultural policies should be incorporated into comprehensive growth strategies.

Keywords

Main Subjects

Economics

حوزة موضوعی: کشورهای عضو OECD

Scope: OECD countries

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