Economics and Business
ISSN 2775-9237 (Online)
Published: 01 June 2021
Examining the Effects of Food and Product Production Values and Production Added Value on Inflation Over the Years: Empirical Evidence for Turkey
Isil Tellalbasi Menguc
Bolu Abant İzzet Baysal University
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Keywords: Inflation, Food, Product, Production
In this study, it is aimed to examine the effects of food and product production values on inflation. In the study, the variables of the World Bank Country Reports between 1991-2019 Consumer Price Index, Wholesale Price Index, Food Production Index, Product Production Index and Production Value Added were used. According to the results obtained from the study, there is a statistically significant relationship between TUFE and TOFE and GUE, UUE and UKD variables (p <0.01). According to the results of controlled correlation analysis, the effects of food and product production indexes on consumer and wholesale inflation level are not statistically significant (p> 0.05). The effect of UKD and GUE parameters on inflation is statistically significant (p <0.05). Explanation power of both models is very high. According to the regression coefficients, UKD has a negative effect, and GUE has a positive effect. The results show that production has a positive effect on inflation, while production value added has a decreasing effect on consumer and wholesale prices. These results show that the production in our country is actually high cost and its added value is low.
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