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Role of Agricultural Research and Extension in Enhancing Agricultural Productivity in Punjab, Pakistan

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  • Nasir nadeem, Dr.
  • khalid Mushtaq, Dr.
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    Abstract

    In this study long run relationship between agricultural research and TFP (total factor productivity) is estimated by using Cointegration technique for 1970-2005. The results of the long run relationship between TFP and agricultural research indicate that agricultural research has a significant and positive impact on TFP. The estimated coefficient of research is 0.571 and it is significant at 1 percent level of significance. Granger-causality tests show a bidirectional relationship between research and productivity. The estimate of marginal internal rate of return (MIRR) to research is found to be 73 percent, indicating that Punjab agricultural research system remained productive.

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    File URL: http://mpra.ub.uni-muenchen.de/27769/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27769.

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    Date of creation: 2010
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    Handle: RePEc:pra:mprapa:27769

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    Keywords: Productivity; TFP; Cointegration; MIRR; Granger Causality.;

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    1. Mullen, John D., 2007. "Productivity Growth and the Returns from Public Investment in R&D in Australian Broadacre Agriculture," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 9451, Australian Agricultural and Resource Economics Society.
    2. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
    3. Araji, A.A. & White, Fred C. & Guenthner, Joseph F., 1995. "Spillovers And The Returns To Agricultural Research For Potatoes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(02), December.
    4. Shenggen Fan, 2000. "Research Investment and the Economic Returns To Chinese Agricultural Research," Journal of Productivity Analysis, Springer, vol. 14(2), pages 163-182, September.
    5. Shujat Ali, 2005. "Total Factor Productivity Growth and Agricultural Research and Extension: An Analysis of Pakistan's Agriculture, 1960-1996," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 729-746.
    6. Julia Hall & Grant M Scobie, 2006. "The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1927 to 2001," Treasury Working Paper Series 06/01, New Zealand Treasury.
    7. Makki, Shiva S. & Thraen, Cameron S. & Tweeten, Luther G., 1999. "Returns to American Agricultural Research: Results from a Cointegration Model," Journal of Policy Modeling, Elsevier, vol. 21(2), pages 185-211, March.
    8. Jorge Fernandez-Cornejo & C. Richard Shumway, 1997. "Research and Productivity in Mexican Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 738-753.
    9. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    10. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
    11. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    12. John Mullen, 2007. "Productivity growth and the returns from public investment in R&D in Australian broadacre agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 359-384, December.
    13. Mullen, John D., 2007. "Productivity growth and the returns from public investment in R&D in Australian broadacre agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), December.
    14. Hendry, David F. & Ericsson, Neil R., 1991. "Modeling the demand for narrow money in the United Kingdom and the United States," European Economic Review, Elsevier, vol. 35(4), pages 833-881, May.
    15. Colin Thirtle & Lin Lin Lin & Jim Holding & Lindie Jenkins & Jenifer Piesse, 2004. "Explaining the Decline in UK Agricultural Productivity Growth," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 343-366.
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