The Impact of Turkish Agricultural Policy on Competitiveness of Cotton Production

Abstract

This study applied Policy Analysis Matrix (PAM) to assess the competitiveness of cotton production in terms of profitability and to measure the effects of agricultural policies at national level which is produced under a set of various subsidies in Turkey. First, agricultural policies applied for cotton production in Turkey were examined. Policy transfers, resource utilization, costs, private and social profits resulting from these applications were also presented with PAM. Also some important indicators such as Domestic Resource Cost (DRC), Effective Protection Coefficient (EPC), and Nominal Protection Coefficient (NPC) were calculated from PAM framework to measure competitiveness. This method is widely used to analysis of the impact of policies on production economics and it is a very effective method. PAM is mainly based on benefit-cost analysis. Besides the secondary data analysis of the effects of policy, the data obtained through face to face interviews with producers selected through stratified sampling method in the 3 regions and 4 provinces with high productions.