Labor and Agriculture Productivity: A Case of Thana, Sakhakot and Palyai Sher Khana of District Malakand

Abstract

Pakistan is an agrarian country and agriculture sector has been remained the main stay for the economy since independence in 1947. There are a number of factors which can affect its productivity in different ways. The present study examines agriculture productivity in district Malakand using a random sample of 56 farmers. A structured questionnaire is developed, and explained to respondents whenever needed. Data gathered is analyzed using descriptive statistics and linear production function of Cobb-Douglas type. The econometric model is estimated using OLS, after testing for all its major assumptions.  The empirical analysis is carried out in two ways: first, simple descriptive statistics has been calculated, and secondly, an econometric model has been estimated. The descriptive analysis reveals that the average agri. Productivity in the sample area is Rs 6.02. The average of labor hours is 25.1875 per day. The use of tractor by a farmer on average is 958.04 hours per year. The average fertilizers used in agriculture productivity is 3245 kilo gram per year. The average level of water used by the farmer is 1.93 times per week. The average pesticides in the sample area 2.34 times per month. As shown in the general theory of production, production depends on a number of factors such as labor (L), Tractor (TRC), Fertilizer (F), Water times (WTUS). The expected coefficients of each variables is expected be positively related to production level under certain assumptions. Labor input is positively related to production of agri. Output. The tractor has smaller and smaller positive effects on productivity. These effects are so small that it is statistically insignificant contribution to productivity. Water and pesticide is an essential input for forming. Many studies have shown that water and pesticide have positive effects on agriculture productivity. . The role of govt. is not very impressive in promotion of know how related to agri. diseases and its medicine. It may be due to this that the impact of pesticide is negative, which is being a small amount in use.