IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v66y2020i12id252-2020-agricecon.html
   My bibliography  Save this article

Revisiting the effects of relevant factors on Pakistan's agricultural products export

Author

Listed:
  • Zaid Ashiq Khan

    (College of Economics and Management, Northwest A&F University, Yangling, Shaanxi, China)

  • Mansoor Ahmed Koondhar

    (College of Economics and Management, Northwest A&F University, Yangling, Shaanxi, China)

  • Noshaba Aziz

    (College of Economics and Management, Northwest A&F University, Yangling, Shaanxi, China)

  • Uzair Ali

    (College of Economics and Management, Northwest A&F University, Yangling, Shaanxi, China)

  • Liu Tianjun

Abstract

Pakistan is an agriculture-based country, so the agricultural sector is known as the backbone of the national economy. Considering the national economy and the agricultural industry, it is necessary to focus on earnings through agricultural products export to improve the livelihood of local farmers. Therefore, the current study aimed to analyse the short-term and long-term factors affecting agricultural products export. The annual time series of 1976-2016 were collected from World Bank indicators, the Food and Agriculture Organization, and the Statistical Bureau of Pakistan. An autoregressive distributed lag, along with a vector error correction model, was employed. A cointegration test showed long-term associations between the selected variables. While the autoregressive distributed lag model confirmed the short-term correlation between area sown and crop production towards agricultural products export, there is no long-term relationship between the selected variables. In addition, the bidirectional correlation between employment in agriculture and agricultural products export was confirmed by the vector error correction model. Therefore, it is essential to increase agricultural production with the available natural resources to increase foreign earnings.

Suggested Citation

  • Zaid Ashiq Khan & Mansoor Ahmed Koondhar & Noshaba Aziz & Uzair Ali & Liu Tianjun, 2020. "Revisiting the effects of relevant factors on Pakistan's agricultural products export," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(12), pages 527-541.
    • Handle: RePEc:caa:jnlage:v:66:y:2020:i:12:id:252-2020-agricecon
    DOI: 10.17221/252/2020-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/252/2020-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/252/2020-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/252/2020-AGRICECON?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pesaran, M. Hashem & Shin, Yongcheol & Smith, Richard J., 2000. "Structural analysis of vector error correction models with exogenous I(1) variables," Journal of Econometrics, Elsevier, vol. 97(2), pages 293-343, August.
    2. Zulfiqar, Farhad & Thapa, Gopal B., 2017. "Agricultural sustainability assessment at provincial level in Pakistan," Land Use Policy, Elsevier, vol. 68(C), pages 492-502.
    3. Wu, X.D. & Guo, J.L. & Han, M.Y. & Chen, G.Q., 2018. "An overview of arable land use for the world economy: From source to sink via the global supply chain," Land Use Policy, Elsevier, vol. 76(C), pages 201-214.
    4. Alex Bara & Gift Mugano & Pierre Le Roux, 2016. "Financial Reforms and the Finance-Growth Relationship in the Southern African Development Community (SADC) Region," Working Papers 90, Economic Research Southern Africa.
    5. Ullah, Ayat & Arshad, Muhammad & Kächele, Harald & Khan, Ayesha & Mahmood, Nasir & Müller, Klaus, 2020. "Information asymmetry, input markets, adoption of innovations and agricultural land use in Khyber Pakhtunkhwa, Pakistan," Land Use Policy, Elsevier, vol. 90(C).
    6. Bakari, Sayef & Sofien, Tiba, 2019. "Does Agricultural Trade promote Chinese economic growth? ARDL Approach," MPRA Paper 94614, University Library of Munich, Germany.
    7. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    8. Salam, Abdul, 2012. "Review of input and output policies for cereals production in Pakistan:," IFPRI discussion papers 1223, International Food Policy Research Institute (IFPRI).
    9. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    10. Alfred A. Haug, 2002. "Temporal Aggregation and the Power of Cointegration Tests: a Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(4), pages 399-412, September.
    11. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    12. A. Hatemi-J & R. S. Hacker, 2009. "Can the LR test be helpful in choosing the optimal lag order in the VAR model when information criteria suggest different lag orders?," Applied Economics, Taylor & Francis Journals, vol. 41(9), pages 1121-1125.
    13. Ploberger, Werner & Kramer, Walter, 1992. "The CUSUM Test with OLS Residuals," Econometrica, Econometric Society, vol. 60(2), pages 271-285, March.
    14. Han, Mengyao & Chen, Guoqian, 2018. "Global arable land transfers embodied in Mainland China’s foreign trade," Land Use Policy, Elsevier, vol. 70(C), pages 521-534.
    15. Msuya, Elibariki, 2007. "The Impact of Foreign Direct Investment on Agricultural Productivity and Poverty Reduction in Tanzania," MPRA Paper 3671, University Library of Munich, Germany.
    16. Jungho Baek & Won W. Koo, 2009. "Assessing the Exchange Rate Sensitivity of U.S. Bilateral Agricultural Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 187-203, June.
    17. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
    18. Habib A. Zuberi, 1989. "Production Function, Institutional Credit and Agricultural Development in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 28(1), pages 43-56.
    19. Jeremiás Máté Balogh & Attila Jámbor, 2020. "The Environmental Impacts of Agricultural Trade: A Systematic Literature Review," Sustainability, MDPI, vol. 12(3), pages 1-16, February.
    20. Nawaz AHMAD, 2011. "Impact of Institutional Credit on Agricultural Output: A Case Study of Pakistan," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(10(563)), pages 99-120, October.
    21. Rao Muhammad Atif & Liu Haiyun & Haider Mahmood, 2017. "Pakistan's agricultural exports, determinants and its potential: an application of stochastic frontier gravity model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(3), pages 257-276, April.
    22. Muhammad Iqbal & Munir Ahmad & Kalbe Abbas, 2003. "The Impact of Institutional Credit on Agricultural Production in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 469-485.
    23. Mansoor Ahmed KOONDHAR & Lingling QIU & Houjian LI & Weiwei LIU & Ge HE, 2018. "A nexus between air pollution, energy consumption and growth of economy: A comparative study between the USA and China-based on the ARDL bound testing approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(6), pages 265-276.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghulam Mustafa & Saqib Hussain, 2023. "What are the Factors Making Pakistan’s Exports Stagnant? Insight from Literature Review," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 62(3), pages 449-460.
    2. Radovan Kastratović, 2023. "Exporting decision of agricultural firms: The role of foreign direct investment," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 960-984, October.

    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. Muhammad Shahbaz & Mete Feridun, 2012. "Electricity consumption and economic growth empirical evidence from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(5), pages 1583-1599, August.
    2. Syed Ali Raza & Muhammad Shahbaz & Sudharshan Reddy Paramati, 2017. "Dynamics of Military Expenditure and Income Inequality in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1035-1055, April.
    3. Abbas Ali Chandio & Abdul Rauf & Yuansheng Jiang & Ilhan Ozturk & Fayyaz Ahmad, 2019. "Cointegration and Causality Analysis of Dynamic Linkage between Industrial Energy Consumption and Economic Growth in Pakistan," Sustainability, MDPI, vol. 11(17), pages 1-18, August.
    4. Muhammad Shahbaz & Faridul Islam & Naveed Aamir, 2012. "Is devaluation contractionary? Empirical evidence for Pakistan," Economic Change and Restructuring, Springer, vol. 45(4), pages 299-316, November.
    5. Farooq, Abdul & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2013. "Does corruption impede economic growth in Pakistan?," Economic Modelling, Elsevier, vol. 35(C), pages 622-633.
    6. Md. Samsul Alam & Syed Ali Raza & Muhammad Shahbaz & Qaisar Abbas, 2016. "Accounting for Contribution of Trade Openness and Foreign Direct Investment in Life Expectancy: The Long-Run and Short-Run Analysis in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(3), pages 1155-1170, December.
    7. Muhammad SHAHBAZ, 2009. "On Nominal and Real Devaluations Relation: An Econometric Evidence for Pakistan," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
    8. Shahbaz, Muhammad, 2013. "Linkages between inflation, economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 32(C), pages 496-506.
    9. Brini, Riadh & Amara, Mohamed & Jemmali, Hatem, 2017. "Renewable energy consumption, International trade, oil price and economic growth inter-linkages: The case of Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 620-627.
    10. Fakhri J. Hasanov & Muhammad Javid & Frederick L. Joutz, 2022. "Saudi Non-Oil Exports before and after COVID-19: Historical Impacts of Determinants and Scenario Analysis," Sustainability, MDPI, vol. 14(4), pages 1-38, February.
    11. Abbas Ali Chandio & Yuansheng Jiang & Abdul Rauf & Fayyaz Ahmad & Waqas Amin & Khurram Shehzad, 2020. "Assessment of Formal Credit and Climate Change Impact on Agricultural Production in Pakistan: A Time Series ARDL Modeling Approach," Sustainability, MDPI, vol. 12(13), pages 1-21, June.
    12. Sebastian Kripfganz & Daniel C. Schneider, 2020. "Response Surface Regressions for Critical Value Bounds and Approximate p‐values in Equilibrium Correction Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(6), pages 1456-1481, December.
    13. Shahbaz, Muhammad & Solarin, Sakiru Adebola & Mahmood, Haider & Arouri, Mohamed, 2013. "Does financial development reduce CO2 emissions in Malaysian economy? A time series analysis," Economic Modelling, Elsevier, vol. 35(C), pages 145-152.
    14. Shahbaz, Muhammad & Ur Rehman, Ijaz & Zainudin, Rozaimah, 2013. "Macroeconomic Determinants of Stock Market Capitalization in Pakistan:Fresh Evidence from Cointegration with unknown Structural breaks," MPRA Paper 52490, University Library of Munich, Germany, revised 24 Dec 2013.
    15. Muhammad Shahbaz & Ijaz Rehman & Nurul Mahdzan, 2014. "Linkages between income inequality, international remittances and economic growth in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1511-1535, May.
    16. Enrique Martínez García & Yixiang Zhang, 2024. "The Contribution of Foreign Holdings of U.S. Treasury Securities to the U.S. Long-Term Interest Rate: An Empirical Investigation of the Impact of the Zero Lower Bound," Globalization Institute Working Papers 430, Federal Reserve Bank of Dallas.
    17. Bibhuti Ranjan Mishra & Asit Mohanty, 2017. "An Empirical Analysis of Aggregate Import Demand Function for India," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(4), pages 1-12, December.
    18. Bibhuti Sarker & Farid Khan, 2020. "Nexus between foreign direct investment and economic growth in Bangladesh: an augmented autoregressive distributed lag bounds testing approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-18, December.
    19. Shahbaz, Muhammad & Shabbir, Muhammad Shahbaz & Malik, Muhammad Nasir & Wolters, Mark Edward, 2013. "An analysis of a causal relationship between economic growth and terrorism in Pakistan," Economic Modelling, Elsevier, vol. 35(C), pages 21-29.
    20. Muzammil, Muhammad, 2015. "Impact of Financial Development on Trade Balance: An ARDL Cointegration and Causality Approach for Pakistan," MPRA Paper 68587, University Library of Munich, Germany.

    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:caa:jnlage:v:66:y:2020:i:12:id:252-2020-agricecon. 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: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    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.