IDEAS home Printed from https://ideas.repec.org/a/adx/journl/v4y2022i2p58-64.html
   My bibliography  Save this article

An Implication of Impulse Response Function in the Perspective of Green Revolution, Credit Disbursement, and Fossil Fuel Utilization in Pakistan

Author

Listed:
  • Saeed Ur Rahman
  • Zia Ur Rahman
  • Aabera Atta
  • Faiza Afzal

Abstract

Recently, credit disbursement and fossil fuel utilization increased to enhance wheat production so peasants could benefit from the green revolution. To look at the impact of credit disbursement, fossil fuel utilization, and the determinants of the green revolution were arranged to investigate the association among them. For this purpose, the study employed the time series in the perspective of Pakistan, spanning 1971 to 2019. Modern econometrics techniques like Johansen cointegration, vector autoregressive and impulse response function were employed along with a number of diagnostics tests. Evidence of the Johansen model shows significant long-run cointegration among the green revolution, credit disbursement, fossil fuel, and total wheat production. The Johansen test elaborates that 1% increase in credit disbursement and fossil fuel increases the total wheat production by 0.57% and 0.04 % respectively. Moreover, the determinants of the green revolution also positively affect wheat production. While the coefficient, residual and stability diagnostic tests are in favor of the study. The findings of the impulse response function state that all the concerned variables positively affect the total wheat production in the coming years. The study suggested that the government and private sector should invest in research and development to introduce the organic chemical and forming to avoid soil fertility and environmental degradation.

Suggested Citation

  • Saeed Ur Rahman & Zia Ur Rahman & Aabera Atta & Faiza Afzal, 2022. "An Implication of Impulse Response Function in the Perspective of Green Revolution, Credit Disbursement, and Fossil Fuel Utilization in Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 58-64.
    • Handle: RePEc:adx:journl:v:4:y:2022:i:2:p:58-64
    DOI: 10.52223/jei4022207
    as

    Download full text from publisher

    File URL: https://doi.org/10.52223/jei4022207
    Download Restriction: no
    File URL: https://libkey.io/10.52223/jei4022207?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tavakkoli, Ali Reza & Oweis, Theib Y., 2004. "The role of supplemental irrigation and nitrogen in producing bread wheat in the highlands of Iran," Agricultural Water Management, Elsevier, vol. 65(3), pages 225-236, March.
    2. Martinson Ankrah Twumasi & Yuansheng Jiang & Monica Owusu Acheampong, 2019. "Capital and credit constraints in the engagement of youth in Ghanaian agriculture," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 80(1), pages 22-37, October.
    3. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    4. Shahbaz, Muhammad & Loganathan, Nanthakumar & Zeshan, Mohammad & Zaman, Khalid, 2015. "Does renewable energy consumption add in economic growth? An application of auto-regressive distributed lag model in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 576-585.
    5. Mamudu Abunga Akudugu, 2016. "Agricultural productivity, credit and farm size nexus in Africa: a case study of Ghana," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(2), pages 288-308, July.
    6. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
    7. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    8. Oweis, Theib & Hachum, Ahmed, 2001. "Reducing peak supplemental irrigation demand by extending sowing dates," Agricultural Water Management, Elsevier, vol. 50(2), pages 109-123, September.
    9. Marrero, Gustavo A., 2010. "Greenhouse gases emissions, growth and the energy mix in Europe," Energy Economics, Elsevier, vol. 32(6), pages 1356-1363, November.
    10. Oweis, Theib & Hachum, Ahmed, 2006. "Water harvesting and supplemental irrigation for improved water productivity of dry farming systems in West Asia and North Africa," Agricultural Water Management, Elsevier, vol. 80(1-3), pages 57-73, February.
    11. Mamudu Abunga Akudugu, 2016. "Agricultural productivity, credit and farm size nexus in Africa: a case study of Ghana," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(2), pages 288-308, July.
    12. Admassie, Assefa & Abebaw, Degnet, 2021. "Ethiopia – Land, energy, climate change, and agricultural development: A study in the Sudano-Sahel Initiative for Regional Development, Jobs, and Food Security," Working Papers 308804, University of Bonn, Center for Development Research (ZEF).
    13. Kanjilal, Kakali & Ghosh, Sajal, 2013. "Environmental Kuznet’s curve for India: Evidence from tests for cointegration with unknown structuralbreaks," Energy Policy, Elsevier, vol. 56(C), pages 509-515.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dang, Le Phuong Xuan & Hoang, Viet-Ngu & Nghiem, Son Hong & Wilson, Clevo, 2023. "Social networks with organisational resource, generalised trust and informal loans: Evidence from rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 388-402.
    2. Doku, James Ntiamoah & Dziwornu, Raymond K. & Agbanyo, Richard & Awuletey, Joyce Owusuaa, 2022. "Loan syndication and cocoa production: Evidence from Ghana," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(2), June.
    3. Sudeshna Ghosh, 2019. "Environmental Pollution, Income Inequality, and Household Energy Consumption: Evidence from the United Kingdom," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-31, June.
    4. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    5. Pata, Ugur Korkut, 2018. "The influence of coal and noncarbohydrate energy consumption on CO2 emissions: Revisiting the environmental Kuznets curve hypothesis for Turkey," Energy, Elsevier, vol. 160(C), pages 1115-1123.
    6. Sajjad Ali & Liu Ying & Tariq Shah & Azam Tariq & Abbas Ali Chandio & Ihsan Ali, 2019. "Analysis of the Nexus of CO 2 Emissions, Economic Growth, Land under Cereal Crops and Agriculture Value-Added in Pakistan Using an ARDL Approach," Energies, MDPI, vol. 12(23), pages 1-18, December.
    7. Evans Sumabe Batung & Kamaldeen Mohammed & Moses Mosonsieyiri Kansanga & Hanson Nyantakyi-Frimpong & Isaac Luginaah, 2023. "Credit access and perceived climate change resilience of smallholder farmers in semi-arid northern Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 321-350, January.
    8. Jaruwan Chontanawat, 2020. "Dynamic Modelling of Causal Relationship between Energy Consumption, CO 2 Emission, and Economic Growth in SE Asian Countries," Energies, MDPI, vol. 13(24), pages 1-27, December.
    9. Hamdi, Helmi & Sbia, Rashid, 2013. "Dynamic relationships between oil revenues, government spending and economic growth in an oil-dependent economy," Economic Modelling, Elsevier, vol. 35(C), pages 118-125.
    10. Bakari, Sayef, 2019. "Do Agricultural Raw Materials Imports Cause Agricultural Growth? Empirical Analysis from North Africa," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 4(2), pages 65-77, December.
    11. Bierens, H.J. & Broersma, L., 1991. "The relation between unemployment and interest rate : some international evidence," Serie Research Memoranda 0112, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    12. Xu, Haifeng & Hamori, Shigeyuki, 2012. "Dynamic linkages of stock prices between the BRICs and the United States: Effects of the 2008–09 financial crisis," Journal of Asian Economics, Elsevier, vol. 23(4), pages 344-352.
    13. Webber, A., 1999. "Newton's Gravity Law and Import Prices in the Asia Pacific," Economics Working Papers WP99-12, School of Economics, University of Wollongong, NSW, Australia.
    14. Pagan, Jose A. & Soydemir, Gokce A., 2001. "Response asymmetries in the Latin American equity markets," International Review of Financial Analysis, Elsevier, vol. 10(2), pages 175-185.
    15. Pawel Milobedzki, 2010. "The Term Structure of the Polish Interbank Rates. A Note on the Symmetry of their Reversion to the Mean," Dynamic Econometric Models, Uniwersytet Mikolaja Kopernika, vol. 10, pages 81-95.
    16. M. T. Alguacil & V. Orts, 2003. "Inward Foreign Direct Investment and Imports in Spain," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 19-38.
    17. Sayef Bakari & Sofien Tiba & Nissar Fakraoui, 2019. "Does Domestic Investment Contribute To Economic Growth In Uruguay? What Did The Empirical Facts Say?," Journal of Smart Economic Growth, , vol. 4(2), pages 53-69, September.
    18. Vicente Meneu & Hipòlit Torró, 2003. "Asymmetric covariance in spot‐futures markets," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 23(11), pages 1019-1046, November.
    19. Muhammad Uzair Ali & Zhimin Gong & Muhammad Ubaid Ali & Fahad Asmi & Rizwanullah Muhammad, 2022. "CO2 emission, economic development, fossil fuel consumption and population density in India, Pakistan and Bangladesh: A panel investigation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 18-31, January.
    20. Felix Nutakor & Sylvestre Bizumuremyi & Jinke Li & Wei Liu, 2020. "Does the Environmental Kuznets Curve for CO 2 Emissions Exist for Rwanda? Evidence from Bootstrapped Rolling-Window Granger Causality Test," Sustainability, MDPI, vol. 12(20), pages 1-11, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adx:journl:v:4:y:2022:i:2:p:58-64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iqbal Javed (email available below). General contact details of provider: https://www.scienceimpactpub.com/journals/index.php .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.