IDEAS home Printed from https://ideas.repec.org/a/aib/ibtjbs/v15y2019i2p62-74.html
   My bibliography  Save this article

Empirics Of Agricultural Production: Comparison Of Instrumental Variable And Two Stage Least Square Approach

Author

Listed:
  • Asif Warsi

    (Iqra University)

  • Dr.Amena Sibghatullah

    (Dr.Amena Sibghatullah)

  • Dr.Athar Iqbal

    (Iqra University)

Abstract

The study uses datafor a set of 81 countries from World Development Indicators from year 2002 to 2015 while applied 2SLS and Instrumental variable approach to estimate the coefficients associated with standard production function of agricultural production and compares its results with the coefficients obtained through OLS.The argument behind this approach that in the standard form, capital is likely to be endogenous in the production function and if it is true, the coefficients obtained through OLS would be inconsistent.Capital is found to be endogenous in the study.It is also noticed as endogeneity exist in our framework and the causal relationships can be controlled through instrumental variable approach I.V..The coefficients from I.V approach and 2SLS are compared with OLS estimates.I.V and 2SLS coefficients are found to be slightly different however, the obtained coefficients through both approaches are more reliable then the coefficients obtained through OLS.It is suggested therefore that the approaches like I.V approach and 2SLS should be employed in the studies pertaining to this area of research.

Suggested Citation

  • Asif Warsi & Dr.Amena Sibghatullah & Dr.Athar Iqbal, 2019. "Empirics Of Agricultural Production: Comparison Of Instrumental Variable And Two Stage Least Square Approach," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 62-74.
    • Handle: RePEc:aib:ibtjbs:v:15:y:2019:i:2:p:62-74
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2019.152.5
    as

    Download full text from publisher

    File URL: http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/15.2/5.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.46745/ilma.ibtjbs.2019.152.5?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. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    2. Yujiro Hayami, 1969. "Sources of Agricultural Productivity Gap Among Selected Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(3), pages 564-575.
    3. Derek Headey & Mohammad Alauddin & D.S. Prasada Rao, 2010. "Explaining agricultural productivity growth: an international perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 41(1), pages 1-14, January.
    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. Asif Warsi & Dr. Amena Sibghatullah & Dr. Athar Iqbal, 2019. "Empirics Of Agricultural Production: Comparison Of Instrumental Variable And Two Stage Least Square Approach," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 15(2), pages 15-15.
    2. Anup Kumar Bhandari & Vipin V, 2018. "Does Export Intensity Affect Firm Performance? Evidence from Basic Metal Industry in India," Working Papers id:12767, eSocialSciences.
    3. Hu, Yue & Liu, Chang & Peng, Jiangang, 2021. "Financial inclusion and agricultural total factor productivity growth in China," Economic Modelling, Elsevier, vol. 96(C), pages 68-82.
    4. Nikos Chatzistamoulou & Phoebe Koundouri, 2020. "The Economics of Sustainable Development," DEOS Working Papers 2005, Athens University of Economics and Business.
    5. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    6. Thanh Pham Thien Nguyen & Son Hong Nghiem & Eduardo Roca & Parmendra Sharma, 2016. "Efficiency, innovation and competition: evidence from Vietnam, China and India," Empirical Economics, Springer, vol. 51(3), pages 1235-1259, November.
    7. Danilo Đokić & Bojan Matkovski & Marija Jeremić & Ivan Đurić, 2022. "Land Productivity and Agri-Environmental Indicators: A Case Study of Western Balkans," Land, MDPI, vol. 11(12), pages 1-13, December.
    8. Alexakis, Christos & Izzeldin, Marwan & Johnes, Jill & Pappas, Vasileios, 2019. "Performance and productivity in Islamic and conventional banks: Evidence from the global financial crisis," Economic Modelling, Elsevier, vol. 79(C), pages 1-14.
    9. Mozumdar, Lavlu, 2012. "Agricultural productivity and food security in the developing world," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 35(1-2).
    10. Tao Wu & Yuelong Wang, 2015. "Did the Establishment of Poyang Lake Eco-Economic Zone Increase Agricultural Labor Productivity in Jiangxi Province, China?," Sustainability, MDPI, vol. 8(1), pages 1-11, December.
    11. Phuc Trong Ho & Pham Xuan Hung & Nguyen Duc Tien, 2023. "Effects of varieties and seasons on cost efficiency in rice farming: A stochastic metafrontier approach," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 13(2), pages 120-129.
    12. Yung-Hsiang LU & Ku-Hsieh CHEN & Chun-Cheng WU, 2015. "Cross-country analysis of efficiency and productivity in the biotech industry: an application of the generalized metafrontier Malmquist productivity index," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(3), pages 116-134.
    13. Napolitano, Oreste & Foresti, Pasquale & Kounetas, Konstantinos & Spagnolo, Nicola, 2023. "The impact of energy, renewable and CO2 emissions efficiency on countries’ productivity," Energy Economics, Elsevier, vol. 125(C).
    14. He, Yan & Chiu, Yung-ho & Zhang, Bin, 2015. "The impact of corporate governance on state-owned and non-state-owned firms efficiency in China," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 252-277.
    15. Jian-Wen Fang & Yung-ho Chiu, 2017. "Research on Innovation Efficiency and Technology Gap in China Economic Development," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(02), pages 1-22, April.
    16. N�stor A. Le Clech & Carmen Fillat Castej�n, 2017. "Productivity, efficiency and technical change in world agriculture: a f�re-primont index approach," Documentos de Trabajo dt2017-09, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    17. Luiz Chabalgoity & Emerson Marinho & Mauricio Benegas & Paulo de M. Jorge Neto, 2005. "The Impact Of De-Regulamentation On The Brazilian Banking Industry: A Production Metafrontier Approach," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 093, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    18. Hong-Oanh Nguyen & Hong-Son Nghiem & Young-Tae Chang, 2018. "A regional perspective of port performance using metafrontier analysis: the case study of Vietnamese ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(1), pages 112-130, March.
    19. Tanko, Mohammed & Ismaila, Salifu, 2021. "How culture and religion influence the agriculture technology gap in Northern Ghana," World Development Perspectives, Elsevier, vol. 22(C).
    20. Binlei Gong & Robin C. Sickles, 2021. "Resource allocation in multi-divisional multi-product firms," Journal of Productivity Analysis, Springer, vol. 55(2), pages 47-70, April.

    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:aib:ibtjbs:v:15:y:2019:i:2:p:62-74. 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: Syed Kashif Rafi (email available below). General contact details of provider: https://edirc.repec.org/data/fmilmpk.html .

    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.