Abstract:

The aim of this study is to determine the relationship between the real agricultural gross domestic product, which is one of the economic indicators of rural development and total agricultural loans among agricultural financing instruments. The study covers the years of 1998-2018. The real agricultural gross domestic product and the total agricultural loans data are included in analysis. In this study, to make the right model selection, the Advanced Dickey-Fuller unit root test is used. After determining the unit root levels of the variables by the Advanced Dickey-Fuller unit root test, the Engle-Granger two-stage cointegration analysis is performed to determine whether there is cointegration relationship between the real agricultural gross domestic product and total agricultural loans. As a result of the analysis, it can be stated that the total agricultural loans and the real agricultural gross domestic product variables act together. In other words, it is determined that the real agricultural gross domestic product and the agricultural loans are in a the long-term relationships.

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