Determination of the relationship between organic farming area and agricultural added value in some european union countries with panel ARDL analysis

Abstract

In the current study, the relationship between organic farming area and agricultural added value in some European Union countries was examined for the period of 2010-2018. Germany, Austria, France, Spain, Italy, Greece, the Netherlands, Denmark and Sweden were included in the study. Dynamic panel ARDL model was used. In the countries examined according to the Pooled Mean-Group (PMG) estimator, a significant positive relationship was found between organic farming area and agricultural added value in the long-term. Since a positive correlation was found between organic farming area and agricultural added value in the study, it was concluded that that organic farming areas, correspondingly, organic agricultural production should be increased in order to increase agricultural added value. In the study, a bidirectional causality relationship was also determined between agricultural added value and organic farming area