ECONOMIC VALUE OF THE USE OF CHEMICALS IN AGRICULTURE: THE CASE OF EUROPEAN COUNTRIES

Abstract

This study investigates the effects of chemical fertilizers, pesticides, and agricultural lands on gross domestic product. The primary purpose of this study; is to prove that conscious chemical support policies should be applied in agriculture to increase yield and quality in agricultural lands. The study's hypothesis is; when fertilizers and pesticides are used in fertile agricultural lands, the agricultural sector's contribution to the gross domestic product increases. Panel data analysis was conducted for 27 countries covering 2000-2020. In the analysis, the contribution of agriculture to the gross domestic product is taken as the dependent variable. Independent variables; the amount of chemical fertilizer used, hectares of agricultural lands, and pesticides used. The analysis concluded that chemical fertilizers and pesticides affected the dependent variable significantly and positively. In addition, it is understood that the dependent variable's most influential factor is agricultural land. As a result, to increase agriculture's contribution to the gross domestic product, countries should educate farmers about the effects and correct use of pesticides and fertilizers. Thus, agricultural productivity and product quality will be increased.