TOTAL FACTOR PRODUCTIVITY AND EXPORT RELATIONSHIP: THE CASE FOR AGRICULTURE SECTOR IN FOUR MEDITERRANEAN COUNTRIES

Abstract

This study investigates the export and productivity growth in agriculture sector for 4 selected Mediterranean countries (France, Italy, Spain and Turkey) during 1975-2007. Despite increasing interest in the relationship between trade and productivity, very limited studies have been conducted on the causal links between exports and productivity in agricultural sector. The causal relationship between productivity and export is a debate still; there has been a more reasonable approach in other sectors such as in industry. In this study, the empirical analysis results provide support to a long-term relationship between agricultural export and productivity only for Italy among the 4 countries. The results suggest that the relation between agricultural export and productivity has been ambiguous in the long term still.