Impact of Agriculture Productivity on Economic Growth: A Case Study of Pakistan

Abstract

The present study investigates the impact of agriculture productivity on economic growth. The secondary source of data covering the time series period 1972 to 2012 is employed. We have used the auto regressive distributed lags method (ARDL) to estimate the economic growth. Different variables are used such as real gross domestic production per capita gross capital formation, employed labor force, inflation rate, trade, openness, agriculture value added. The inflation rate has negative effect on economic growth while all other variables are positively related to economic growth. The study concludes that big share of agriculture contribute more in economic growth and suggest that government should enhance employed labor force by increasing the higher education in both agriculture and industrial sector.

Keywords: Agriculture productivity, GDP, ARD, Pakistan