THE RELATIONSHIP BETWEEN AGRICULTURE, INDUSTRY, SERVICE SECTORS AND ECONOMIC GROWTH IN TURKEY: BOOTSTRAP TODA-YAMAMOTO CAUSALITY TEST

Many countries undergo economic structural changes over time, and these structural changes are generally from agriculture to industry and from industry to the service sector. While the importance of the agricultural sector decreases with the economic structural change process, the increase in the level of per capita income, the industrial sector begins to come to the fore, but the industrial sector retains its place in the service sector, which is constantly increasing. Turkey, which is a developing country, is also experiencing an economic structural change. From this perspective, the study examines the relationship between economic growth and agriculture, industry, and service sector in the period 1968-to 2020. According to the results of the Bootstrap Toda-Yamamoto causality test used in the study, there is a one-way causality relationship between the agricultural sector and economic growth, while there is a bidirectional causality relationship between economic growth and the service sector. However, according to the results of this study, there is no causal relationship between the industrial sector and economic growth. Considering the results obtained, we recommend that policymakers and practitioners take steps regarding some incentives and aid policies such as taxes and subsidies, to develop the agriculture and service sector.