Role of agriculture in economic growth of Pakistan (original) (raw)

The aim of the study was to investigate the contribution of agricultural sectors towards growth rate of gross domestic product (GDP) of Pakistan. The data ranged from 1996 to 2015 were used to achieve the objectives of the study. The Augmented Dickey Fuller test was applied to examine the stationarity of data and multiple regression models were used to check the impact of agricultural sector on GDP. The results revealed that agriculture sector significantly contributed towards GDP growth rate. One percent increase in the agriculture sector caused 5.56 percent increase in the growth of GDP. Agricultural crops like cotton (Gossypium hirsutum), sugarcane (Saccharum officinarum), maize (Zea mays), Lentil/masoor (Lens culinaris), mung bean (Vigna radiate), onion (Allium cepa) and chilies (Capsicum annuam) and subsector livestock significantly contributed to GDP. Other independent variables rice (Oryza sativa), wheat (Triticum aestivum), mash (Vigna mungo), potato (Solanum tuberosum) and subsectors forestry and fishery had not significant contribution in the GDP growth rate. Classification numbers (JEL) Q 10; Q19 Keywords: Gross Domestic Product, Agricultural Sector, Livestock, Forestry, Fishery.

The present study has been conducted in the year 2008 to make econometric analysis of the relationship between agriculture growth rate and GDP growth rate in Pakistan. Time series data ranging from 1961 to 2007 on the above variables has been taken from Economic Survey of Pakistan (Statistical Supplement, 2006-07) and Federal Bureau of Statistics (1998). Augmented Dickey Fuller (ADF) test has been used for checking the stationarity of the data. The Akaike Information Criterion (AIC) has been used to select the optimum ADF lag. Furthermore, the Johenson Co-integration test (Likelihood Ratio statistic) has been used to detect the long-term relationship among the series. The method of Ordinary Least Square has been used to show the contribution of agriculture growth rate towards GDP growth rate. The results revealed that 1% increase in the agriculture growth rate brings 0.34% increase in GDP growth rate. The explanatory variable (agriculture growth rate) is statistically significant at both 1% and 5% level of significance. It is recommended that the government should stimulate GDP growth rate through agriculture growth in the Pakistan.

In this study, we have analyzed the role of agriculture sector share in Gross Domestic Product (GDP) of Pakistan economy by using time series data from 1975-2012. Ordinary Least Square (OLS) an econometric method is used to estimate the model parameters. For this purpose the study considered several variables such as agriculture, industry, trade and GDP of Pakistan. The results of the study showed positive and significant relation between the GDP and agriculture in Pakistan. Moreover, variables like trade, industry and agriculture have positive relation with GDP growth rate. From the result discussion and conclusion, it may be suggest that Pakistan should make stronger efforts to improve agriculture sector as possible through the reliable policy measure.

The objective of the study is to measure the Impact of Agro-Industrial sector on Pakistan's economic growth. This economy is consisting of traditional agriculture sector and modern manufacturing sector. Pakistan is considered as agriculture country because more than 60% of its population is directly involved with this profession. Times series dataset from 1972 to 2012 is used to analyze the impact of Agro-Industrial sector on Pakistan's economic growth. Gross domestic product (GDP) per capita is taken as dependent variable while the explanatory variables include; inflation rate, employment of labor force, gross capital formation per worker, trade openness, agriculture value added growth rate and manufacturing value added growth rate. Auto regressive distributed lag (ARDL) model is used as statistical technique to analyze the data. Our result shows that explanatory variables of agriculture and manufacturing sectors have significant impact on dependent variable (gross domestic product (GDP) per capita). In policy recommendations, government must take steps and provide necessary incentive to accelerate growth in both agriculture and manufacturing sectors for economic development of Pakistan.

The objective of this research paper is to study the agriculture productivity and its impact on economic growth of Pakistan. The ADF test was used to check the stationarity among variables. ARDL Model was applied to determine long-run and short-run relationship between agriculture productivity and economic growth, using secondary data from1994 to 2017. Our empirical results show that GCF and inflation rate have negative relationship with economic growth while all other variables have positive relationship with economic growth in short-run and long-run. We suggest that Government should make more investment and introduce new technology in agriculture sector to improve its productivity.