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Macro Determinants of Total Factor Productivity Growth of Agriculture in Pakistan

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Listed:
  • Asghar Ali*
  • Khalid Mushtaq**
  • Muhammad Ashfaq***
  • Abedullah****
  • P.J.Dawson*****

Abstract

The role of productivity in accelerating the pace of economic growth is well recognized in the literature. With continual population growth, a diminishing supply of arable land, limits to further expansion of cultivated land and slowing returns to further input intensification, there is a growing need for productivity growth to expand food supply. The present study investigated the impact of different macro variables on Total Factor Productivity (TFP) of agriculture in Pakistan by employing cointegration analysis for the period from 1971 to 2006. The results indicated that human capital, infrastructure development and credit resources are positively associated with TFP of agriculture. Openness of the agricultural economy had a significant positive impact on productivity. Macroeconomic instability influenced TFP growth negatively and significantly. Real per capita income had a positive but insignificant relationship with productivity growth. Strong two way Granger-causality was observed between productivity and human capital development; and infrastructural development. Overall the results implied that policies which promote human capital, increase credit resources in agriculture, improve infrastructure development, facilitate openness of the agricultural economy, will improve the productivity and competitiveness of Pakistan agriculture

Suggested Citation

  • Asghar Ali* & Khalid Mushtaq** & Muhammad Ashfaq*** & Abedullah**** & P.J.Dawson*****, 2012. "Macro Determinants of Total Factor Productivity Growth of Agriculture in Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 22, pages 1-18.
    • Handle: RePEc:pje:journl:article12v
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    Cited by:

    1. Miguel Martín-Retortillo & Vicente Pinilla, 2019. "The fundamental causes of economic growth: a comparative analysis of the total factor productivity growth of European agriculture, 1950-2005," Documentos de Trabajo (DT-AEHE) 1912, Asociación Española de Historia Económica.
    2. Eita, Joel Hinaunye & Pedro, Marcio Jose, 2020. "Modelling total factor productivity in a developing economy: evidence from Angola," MPRA Paper 101304, University Library of Munich, Germany, revised 30 Apr 2020.
    3. Soumitra CHATTERJEE & Saurav GUPTA, 2013. "Extent of technological change in rice cultivation over four decades in West Bengal, India," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(6), pages 281-291.
    4. Khumbuzile C. Mosoma & Renee van Eyden & Heinrich R. Bohlmann, 2023. "Measuring Total Factor Productivity in the South African Agricultural Sector Using a Growth Accounting Framework," Working Papers 202306, University of Pretoria, Department of Economics.
    5. Phillip Akanni Olomola & Tolulope Temilola Osinubi, 2018. "Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)," Emerging Economy Studies, International Management Institute, vol. 4(2), pages 192-217, November.

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