Unravelling the Complexities of Agricultural Productivity in Pakistan : A Focus on Determinants

Document Type : Research Paper

Authors

1 Center of Economic Planning and Development, Minhaj University, Lahore, Pakistan

2 Faculty of Economics and Finance, Minhaj University, Lahore, Pakistan

3 Department of ICRIE , Minhaj University, Lahore, Pakistan

10.22059/ier.2024.365200.1007808

Abstract

The research seeks to investigate the relationship between rainfall, temperatures, environmental changes agricultural credit and the total factor of production, which impact agricultural productivity in Pakistan from 1990 to 2020. To estimate the data, we use the unit root and investigate the stationarity of the data and it is determined that some variables are at 1(0) and others are at 1(1). Then, the ARDL model examines the long- and short-term outcomes. Our empirical findings indicate that agriculture credit, temperature, and total production factors positively and significantly affect short- and long-term agricultural output, which help to boost the productivity. In addition, rainfall and environmental changes have adverse and significant short- and long-term effects on agricultural productivity. Stability experiments have confirmed the model's stability. The study concluded that it is necessary to introduce seed and crop varieties more resistant to precipitation and environmental changes. In addition, there must be an emphasis on research and development.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 12 February 2024

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