An empirical analysis of agricultural export on economic growth: A case study of Pakistan

This study has focused to analyze the influence of agricultural and non-agricultural export on economic growth in Pakistan obtaining annual time series data from 1972 to 2014. Gross domestic product, labor force, capital formation, agriculture exports, non-agriculture exports, exchange rate and consumer price index are prominent variables of the study. Johansen cointegration, Error Correction Model (ECM) and Granger Causality econometric approaches have employed for empirical analysis of the study. Labor force and exchange rate stationary at 1st difference while all other variables are stationary at level. According to empirical estimates, long run equilibrium exists among agriculture exports and non-agriculture exports. Error correction model estimates have justified the existence of short run equilibrium among variables of the study. Agriculture must have significant importance, increasing productivity through priority policy measures of adequate provision of inputs, infusion of innovative mechanization and minimization of market imperfection. Potential productivity in agriculture more desirable goal and agro-based industries must familiarized in agriculture to export value added goods rather than raw material to increasing foreign exchange earning of country. (c) 2017 The Authors. Published by IASE. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).