Time Series Analysis of Causal Relationship among Sectoral Labor Productivity in Turkey


  • Cevher Özden Department of Agricultural Economics, Faculty of Agriculture, Çukurova University, 01380 Adana, Turkey
  • Filiz Yetiz Department of Banking and Finance, Faculty of Economics and Administrative Sciences, Ömer Halisdemir University, 51240 Niğde,




causality, granger, labor productivity, agriculture, impulse-response, variance decomposition


In this paper, we investigate the causal relationship in terms of labor productivity among GDP and its constituent three main sectors, e.g. agricultural, industrial and services sectors, in Turkey for the period of 1988-2015. In the study we employed Granger causality/block exogeneity Wald test, Impulse Response and Variance Decomposition analysis. The results showed that both agriculture and industry have positive effects on the labor productivity in services sector, and industry has a positive effect on the labor productivity in agriculture sector, while industrial labor productivity is not affected by the others. The main aim of the paper is examine the question of whether agriculture could serve as an engine of growth. Accordingly, the results indicated that labor productivity in agriculture sector increased during the course of study, and contributed to the labor productivity in services sector, as well. To our knowledge, although this method has been applied in various areas, sectoral causality has not been studied for Turkey before.




How to Cite

Özden, C., & Yetiz, F. (2017). Time Series Analysis of Causal Relationship among Sectoral Labor Productivity in Turkey. Turkish Journal of Agriculture - Food Science and Technology, 5(6), 586–592. https://doi.org/10.24925/turjaf.v5i6.586-592.1030



Agricultural Economics