Agriculture and Economic Growth: Evidence from Pakistan

The overarching objective of this study is to make vigorous endeavor to examine the contribution of agriculture sector towards GDP growth rates in Pakistan over the period 1971-2015. Using ARDL approach to co-integration, the empirical results indicate that agriculture sector has significant influence on GDP growth rates of Pakistan. The long-run and short-run coefficients of agriculture are estimated to be 0.31 and 0.27 respectively. Agriculture sector has been playing an important role to enhance economic growth of Pakistan. Therefore, our findings recommended that the Government of Pakistan may introduce novel modern technologies such as mechanization for the improvement of agriculture sector which bring some structural changes and ensure agriculture leading economic growth of Pakistan.