The relation between foreign trade and water resources: Turkey case

Many countries are faced with water famine problem at world scale in recent years. Global warming, wrong and extensive use of water resources and degradation of renewal capacity itself of water ecosystem accordingly, not forming water management concept and its application at national level and extensive population increase can be given for reasons of this situation. Water is used in production input in many production areas. Especially, agricultural production activities are made in water-intensive area. These production activities can be affected from shortage or abundance of water resources at national and international level because of reasons aforementioned and import and export of countries? agricultural products display differences depending on the state of their water resources. Some countries restrict the export of some products and some countries also increase the import of some agricultural products according to their water resources. In this study, it is determined by Granger causality test whether a relation between countries foreign trade and shortage and abundance of water resources exist or not. The effect of export, import, price and water resources on production of agricultural products has been tested by using Linear Demand Function and finally the relation between the growth rate of agricultural production and growth rate of water resources has been examined using constant growth model.