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An Augmented Solow Growth Model: The Role of Agriculture Productivity and Institutional Quality in Pakistan

Author

Listed:
  • Muhammad Azam

    (Ph. D Scholar at Federal Urdu University, Islamabad, Pakistan)

  • Muhammad Irfan Chani

    (Assistant Professor and Head of Economics Department at University of Lahore, Pakpattan, Pakistan)

  • Muhammad Wasif Siddiqi

    (Visiting Professor at GCU, Lahore, Pakistan)

Abstract

This study evaluates the relationship of agriculture productivity and an institutional quality with respect to economic growth in Pakistan using the time series data from 1974 up to 2010.The theoretical model is developed based on augmented Solow model is based on institutional quality and agriculture Productivity variables. The different econometric test were used for that include Phillips-Perron (PP) unit Root Test, Johansen Co integration Test in Pakistan. The results of this study is unique in context of income convergence in Pakistan considering the role of agriculture Productivity as well as institutional quality.The feedback from the study is stronger for policy implication related to agriculture sector as well as Institutional quality for Pakistan.This argued that agriculture Productivity as well as institutional quality are essential for accelerating the economic growth of Pakistan.

Suggested Citation

  • Muhammad Azam & Muhammad Irfan Chani & Muhammad Wasif Siddiqi, 2014. "An Augmented Solow Growth Model: The Role of Agriculture Productivity and Institutional Quality in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 3(2), pages 47-59, June.
    • Handle: RePEc:rfh:bbejor:v:3:y:2014:i:2:p:47-59
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    References listed on IDEAS

    as
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    4. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    5. Shujat Ali, 2004. "Total Factor Productivity Growth in Pakistan’s Agriculture: 1960–1996," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 493-513.
    6. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
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    8. Barro, Robert J & Lee, Jong Wha, 1996. "International Measures of Schooling Years and Schooling Quality," American Economic Review, American Economic Association, vol. 86(2), pages 218-223, May.
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