Browsing by Author "Keskin, Omer"

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Does Institutional Quality Shape Agricultural Credit Orientation? Evidence from D-8 Nations
(MDPI, 2025) Keskin, Omer; Medetoglu, Batuhan; Kavas, Yusuf Bahadir; Gun, Musa
The agricultural sector, which has long been overshadowed by industrialization, has reemerged with renewed strategic significance in the face of global crises, including pandemics and armed conflicts. This study examines the causal relationship between institutional quality and agricultural credit orientation in the Developing-Eight countries from 2002 to 2023. Using the agriculture orientation index for credit as a key indicator, this study investigates how disaggregated institutional dimensions-control of corruption, government effectiveness, political stability and absence of violence, rule of law, regulatory quality, and voice and accountability-affect the allocation of commercial bank credit to agriculture. Both the standard Konya panel causality test and its time-varying extension are employed to capture static and dynamic causal patterns. The findings demonstrate that institutional quality exerts a substantial effect on credit orientation, although the magnitude and characteristics of this influence differ across countries. Turkiye, Indonesia, Nigeria, and Egypt exhibit consistent causal relationships, whereas other countries reveal episodic or latent effects linked to specific political or legal shifts. By combining dynamic methodology with a policy-relevant indicator, this study offers novel insights into how governance shapes agricultural finance. The results underscore the need for country-specific and institution-sensitive credit strategies to increase resilience and equity in financial systems.
An Analysis of the Relationship Between Interest-Free Financing of Agricultural Production and Agricultural Growth Using Contemporary Econometric Methods
(Afyon Kocatepe Univ, 2024) Keskin, Omer; Cikiryel, Burak
Participation banks, operating on the principle of interest-free banking in the Turkish banking sector, have increasingly specialized in agricultural banking. Agricultural banking is a specialized sector of the banking industry that provides financial services to agricultural enterprises to help them manage their financial status, sustain their production activities, and further grow their businesses. Besides the financial gains accrued by banks, one of the primary objectives of providing financial services under agricultural banking is to enable agricultural enterprises to achieve high productivity per unit area, thereby contributing more significantly to growth in the agricultural sector. Hence, participation banks, similar to other banks, offer a diverse range of services to achieve this goal. Investigating the effects of participation banks' services is a noteworthy research topic. By employing time series analysis, this study examines the impact of participation banks' financing of the agricultural sector on agricultural gross domestic product (GDP) in Turkiye. The data sets used in the analysis include the agricultural financing supplied by participation banks and the agricultural GDP values. The period examined spans from 2005Q1 to 2023Q4. The methods applied in the analysis include the Fourier Augmented Dickey-Fuller (FADF) unit root test, the Fourier Autoregressive Distributive Lag (FADL) cointegration test, the Residual Augmented Least Squares-Fourier Autoregressive Distributive Lag (RALS-FADL) cointegration test, and the Fourier TodaYamamoto (FTY) causality test. According to the cointegration tests, a 1% increase in the agricultural financing provided by participation banks leads to a rise in agricultural GDP by 0.80% in the long-run and 0.15% in the short run. The results of the cointegration test are further supported by the findings of the causality test. Consequently, it is evident that the growth in funding allocated to the agricultural sector by participation banks in Turkiye triggers a surge in agricultural GDP. In this regard, it is recommended that all participation banks, particularly the publicly funded Ziraat Katilim Bankasi A.S., which receives support from the Treasury, continue to increase their financial support to the agricultural sector annually to ensure its sustainable growth.