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Title Total Factor Productivity of Agriculture Sector and Economic Growth of Pakistan

Author(s) Abdul Wadood

Abstract ABSTRACT The current research describes the Total Factor Productivity (TPF)of agriculture sector and GDP growth of Pakistan, by utilizing Autoregressive Distributed Lag model from 1980-2018. while constructing of the production function, we were utilized most of the common variables in the production function. In the constructing of productivity and input quantity index, the data of input and output were utilized respectively. The data of GDP, capital used in agriculture, and labor used in agriculture to obtain the agriculture TFP of Pakistan. The time series data from 1980-2018 was taken from various publications or official resources. For this study period the estimated annual average agriculture TFP growth was 2.14 percent and it contribute 58 percent to the overall agriculture output. The findings explain that the TFP of agriculture sector was highest 2.86 from few years and smallest 0.96 in 70s. In 80s as well as in 90s the growing rate of agriculture TFP was 2.24 and 2.46 percent. During the decade of 1970s,1980s,1990s, the TFP growth contributed around 33,53,81 and 81 percent to the agriculture productivity growth. The analysis of TFP of agriculture sector shows a variation in the TFP growth, it is due to the bad weather conditions, public interference and macroeconomics strategies. The important goal of the research is to define the TFP of agriculture sector, and GDP growth of the country. A country like Pakistan, there is a difficulty to get the data of TFP of agriculture sector, it is not available in any approved document. So, the first intention of the research is to obtain the data of TFP of agriculture sector. First, we find out the agricultural sector TFP and then to find the GDP growth of the country, utilizing TFP being as an independent variable while calculating the GDP growth. Augment Dickey Fuller approach is employed to examine, the existence of unit root with variables. If the variables are not at stationary and not at level, then it will made at level by the 1st difference. The economic growth of the country is showing a positive as per the coefficient of the variables, as well as it is substantial in long and short run. Capital stock and labor show a positive impression on the TFP development of the agriculture region. Capital, labor, arable land, agriculture growth shows a clear and substantial impact on the GDP growth of Pakistan. As well as capital, labor and arable land gets a positive impact on the agriculture development, and that is a positive sign for the economic growth of the country. So the findings shows that there is a need to increase capital stock, skill labor, and cultivated land to increase the agriculture growth, and these are the key factors for the betterment of the agricultural TFP of Pakistan.

Type Thesis/Dissertation

Faculty Management Sciences

Department Economics

Language English

Publication Date 2020-05-14

Subject Economics

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