AN INVESTIGATION ON THE FACTORS AFFECTING AGRICULTURAL VALUE ADDED: THE CASE OF E7 COUNTRIES

In the structural transformation accompanying the development process of developing countries, it is necessary to switch from labor-intensive and low value-added agricultural production and natural resource based growth to growth process based on high value-added and advanced technology. Depending on the different value-added structures of the developed and developing countries in agricultural production, the main objective of the study is to determine the current situation of the emerging economies in agricultural production and the factors determining the effectiveness of these countries in the sector. In this context, the relationship between economic complexity index (ECI), political stability index, government efficiency index and agricultural value added is examined by causality analysis. As a result; while the government effectiveness index influenced both the ECI and the agricultural valueadded, causal relationship from political stability to government effectiveness was found. A causal relationship from ECI to the agricultural product valueadded has been found, as well as a causality from the agricultural value added to the government effectiveness index.