Hazelnut export function of Turkey: Application of 1980-2007 period

Parlaktuna I.

IKTISAT ISLETME VE FINANS, vol.24, no.277, pp.61-84, 2009 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 24 Issue: 277
  • Publication Date: 2009
  • Doi Number: 10.3848/iif.2009.277.6127
  • Journal Indexes: Social Sciences Citation Index (SSCI)
  • Page Numbers: pp.61-84
  • Eskisehir Osmangazi University Affiliated: No


Turkey is the main producer and exporter of hazelnut in the world. Therefore Turkey has a monopoly power on the production and export of hazelnut. Among the agricultural export commodities, compared with its share in Turkey's total export volume, hazelnut has the highest share in total export revenue of Turkey. By using its monopoly power on hazelnut, Turkey aims to maximize hazelnut export revenue. To accomplish this aim and also to increase hazelnut producers' revenue, Turkey has adopted a high price subsidy policy. This policy had positive results in the short term but in the long run it had created a negative pressure on the domestic and export price levels. Government tries to reduce the pressure by subsidy purchases. As a result of this policy, production and stocks of hazelnut have increased. These increases affect the export quantity and price in the long run. The aim of this study is to determine the mechanism how the market equilibrium is reached under the aforementioned market conditions. For this purpose, hazelnut export quantity and export price functions are estimated simultaneously with the data running from 1980 to 2007.