The Effects of Agricultural Liberalization on Sectoral Water Use: A CGE Model for Turkey

Abstract

The aim of this study is to construct a water-CGE model for Turkey in order to examine the effects of a reduction in agricultural tariff rates on Turkey’s international trade and on agricultural water use. With agricultural trade liberalization Turkey becomes a net importer of the agricultural products. The agricultural production declines resulting in a reduction in the agricultural water use. The same simulation is considered with an increase in agricultural productivity. The trade distortions resulted from tariff reductions are compensated. Water use in fruit sector increases while in other agricultural sectors it declines although the production and net exports in all agricultural sectors increase.