Impact of agricultural output on economic development and policymaking in Pakistan
Keywords:
FDI, ARDL, Economic development, Economic policy, Agricultural productivity, Agriculture rector reforms, Agriculture output, Human capital, Labour forceAbstract
This research aims to investigate the impact of agricultural output on Pakistan's economic development and policymaking using secondary data from 1973-2020. Based on the data's behaviour, this study employed the ARDL systems for estimation. This study found that the FDI inflow, agricultural output (later on AGRI), gross fixed capital formation (later on GFCF), and human capital and labour force participation (later on LFP) are positive and significant. In contrast, the inflation rate (later on INF) has an undesirable and noteworthy effect on Pakistan's economic development in the long run. This study also found that FDI inflow, agricultural output, gross fixed capital formation, human capital and LFP have a positive and noteworthy effect. In contrast, the inflation rate has an insignificant impact on Pakistan's economic development in the short term. Furthermore, this analysis discovered that the variables had long-term co-integration and a 51 percent level of adjustment. This study concluded that the agricultural output has significantly influenced Pakistan's economic development and public policy making. The study recommends that the government ensure policymakers focus on devising long-term policies to improve agricultural productivity and enhance Pakistan's economic growth and development.
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