Journal of Agriculture Faculty of Ege University, cilt.61, sa.4, ss.475-486, 2024 (Scopus)
Objective: The objective of this paper was to investigate the relationship between pesticide consumption and exchange rate in Türkiye. Material and Methods: First, the stationarities of the variables were examined by applying the fractional-frequency Fourier ADF and traditional ADF unit root tests in the study, which cover the annual time series from 1981 to 2022. Then, the fractional-frequency Fourier ADL cointegration test was applied to evaluate the existence of the cointegration relationship between the variables. Results: The findings of the unit root tests showed that the stationarities of the variables were I (1). The cointegration test revealed that there is a negative relationship between pesticide consumption and exchange rate. A 1% increase in exchange rate causes a decrease of 0.37% and 0.10% in pesticide consumption in the long and short run, respectively. In addition, it was determined that the error correction mechanism established in the study worked. Conclusion: It can be clearly stated that one of the primary dynamics of the change in pesticide consumption in Türkiye is the increase in exchange rate. The increase in exchange rate negatively affects pesticide consumption. Türkiye's foreign dependency on pesticides should be reduced so that excessive fluctuations in exchange rate do not negatively affect pesticide consumption. Domestic production should be increased as much as possible by implementing incentive/subsidy mechanisms.