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Title “Exploring the Relationship Between Road Infrastructure and Agricultural Productivity: Evaluating Empirical Evidence of Pakistan Economy”

Author(s) Ms. Farrah Muzaffar

Abstract The present study investigates of the relationship between quality-road infrastructure and agricultural output by using time series data from 1980 to 2020. Present research has three main goals first, the study analyzed the impact of road infrastructure on output of agricultural sector of Pakistan by using time series data from 1980-2020. Secondly, study evaluates the impact of quality roads on output of three main selected crops like wheat, rice, and cotton of Pakistan. The third objective is to analyze the effect of road infrastructures on agricultural productivity at aggregate and disaggregate level of Pakistan. In methodology, two different unit root tests are used to find the order of integration of each series of all models of the study and these two tests are Augmented Dickey Fuller and Phillips-Perron tests. Both tests indicate that some variables are non-stationary at levels while some are stationary at first difference. These findings suggest that there may be cointegration among the variables. In such circumstances Auto Regressive Distributed Lag bound testing approach i is regarded as the most appropriate technique for obtaining short and long run outcomes. Our finding is indicated the test of hypothesis that road infrastructure is not significant impact on agricultural production at both the aggregate and disaggregate levels (rice) except the wheat and cotton production. Accordingly, from the long run result is suggested that quality of road has insignificant impact on total output as well as in short run it is also insignificant. In the form of wheat production, the quality of road has significant impact in long run but in short run effect it is insignificant. But in the form of 2nd food crop rice, the quality of road has not significant effect in long term along with in short term. Lastly, the form of cash crop, quality of road has significant influence on long run but in short run it effect is insignificant. Present study of policy recommendations suggests that there should be more focus on the improvement of rural infrastructure instead of the road infrastructure, also, in future, if more work is done on the farm technology, skilled labor force and capital input, Pakistan’s agricultural sector and overall economy will experience a great improvement. Keywords: Road infrastructure, Agricultural Productivity & Road connectivity, Economic growth

Type Thesis/Dissertation

Faculty Management Sciences

Department Economics

Language English

Publication Date 2023-02-24

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