IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v65y2019i6id314-2017-agricecon.html
   My bibliography  Save this article

Sectoral growth linkages of agricultural sector: Implications for food security in Pakistan

Author

Listed:
  • Hafiz Asim

    (Department of Economics and Business Administration, University of Education, Lower Mall Campus, Lahore, Pakistan)

  • Muhammad Akbar

    (Department of Mathematics and Statistics, International Islamic University, Islamabad, Pakistan)

Abstract

Does the growth in non-agricultural sectors spill over to the agricultural sector of an economy? There is limited evidence available on the issue for the developing world, especially for Pakistan which has undergone large structural changes since its independence. This study examined the impact of sectoral growth linkages on agricultural output of Pakistan for the period of 1960-2016. We have estimated an econometric model which incorporates inter-sectoral linkages of Pakistan economy using a Vector Error Correction Model (VECM). Our analysis revealed that the economy of Pakistan has shifted from an agricultural dominant economy to services-based economy during the past six decades. Results of VECM show that the industrial sector has a negative impact on the performance of agricultural output whereas services sector is influencing the output of agriculture sector positively in the long run. Short run results show that industrial sector is affecting the performance of agricultural output positively whereas services sector is influencing the output of agriculture sector negatively. Negative impacts of industry in the long run and services in the short run imply that agricultural sector should be given its due share in public investment and the role of middle man should be minimised at the time of sale of agricultural production in the markets.

Suggested Citation

  • Hafiz Asim & Muhammad Akbar, 2019. "Sectoral growth linkages of agricultural sector: Implications for food security in Pakistan," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(6), pages 278-288.
    • Handle: RePEc:caa:jnlage:v:65:y:2019:i:6:id:314-2017-agricecon
    DOI: 10.17221/314/2017-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/314/2017-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/314/2017-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/314/2017-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Johnston, Bruce F, 1970. "Agriculture and Structural Transformation in Developing Countries: A Survey of Research," Journal of Economic Literature, American Economic Association, vol. 8(2), pages 369-404, June.
    2. N. Gemmell & T. A. Lloyd & M. Mathew, 2000. "Agricultural Growth and Inter‐Sectoral Linkages in a Developing Economy," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(3), pages 353-370, September.
    3. Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, vol. 101(405), pages 263-275, March.
    4. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969, April.
    5. Robert Engle & Clive Granger, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    6. Johansen, Søren & Juselius, Katarina, 1992. "Testing structural hypotheses in a multivariate cointegration analysis of the PPP and the UIP for UK," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 211-244.
    7. Anthony Thirlwall, 1995. "The Terms of Trade, Debt and Development: with Particular Reference to Africa," African Development Review, African Development Bank, vol. 7(1), pages 1-34.
    8. Henneberry, Shida Rastegari & Khan, Muhhamad Ehsan & Piewthongngam, Kullapapruk, 2000. "An analysis of industrial-agricultural interactions: a case study in Pakistan," Agricultural Economics, Blackwell, vol. 22(1), pages 17-27, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. İbrahim Bozkurt & M. Veysel Kaya, 2021. "Agricultural production index: International comparison," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(6), pages 236-245.
    2. Md Shajedur Rahaman & Mohammad Chhiddikur Rahman & Md Abdur Rouf Sarkar & Mohammad Ariful Islam, 2023. "Contribution of agriculture subsectors on economic growth in Bangladesh: An application of the ARDL method," Economics Bulletin, AccessEcon, vol. 43(1), pages 245-264.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joao Gaspar & Gilson Pina & Marta Simoes, 2014. "Agriculture in Portugal: linkages with industry and services," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 95(4), pages 437-471.
    2. Hasanov, Fakhri J. & Shannak, Sa'd, 2020. "Electricity incentives for agriculture in Saudi Arabia. Is that relevant to remove them?," Energy Policy, Elsevier, vol. 144(C).
    3. Abda Emam & Egbal Elmsaad, 2025. "Do Non-Agricultural Sectors Affect Food Security in Saudi Arabia?," Sustainability, MDPI, vol. 17(10), pages 1-17, May.
    4. Levent, Korap, 2007. "Modeling purchasing power parity using co-integration: evidence from Turkey," MPRA Paper 19584, University Library of Munich, Germany.
    5. Mr. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 2004/194, International Monetary Fund.
    6. M. T. Alguacil & V. Orts, 2003. "Inward Foreign Direct Investment and Imports in Spain," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 19-38.
    7. M. Hashem Pesaran & Yongcheol Shin, 2002. "Long-Run Structural Modelling," Econometric Reviews, Taylor & Francis Journals, vol. 21(1), pages 49-87.
    8. Perles-Ribes, José Francisco & Ramón-Rodríguez, Ana Belén & Rubia, Antonio & Moreno-Izquierdo, Luis, 2017. "Is the tourism-led growth hypothesis valid after the global economic and financial crisis? The case of Spain 1957–2014," Tourism Management, Elsevier, vol. 61(C), pages 96-109.
    9. María Lorena Marí Del Cristo & Marta Gómez-Puig, 2013. "Fiscal dynamics in a dollarized, oil-exporting country: Ecuador," Working Papers 13-06, Asociación Española de Economía y Finanzas Internacionales.
    10. Urbain, Jean-Pierre, 1995. "Partial versus full system modelling of cointegrated systems an empirical illustration," Journal of Econometrics, Elsevier, vol. 69(1), pages 177-210, September.
    11. Song, Chi-Young, 1997. "The Real Exchange Rate and the Current Account Balance in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 11(2), pages 143-184, June.
    12. Martin Schmidt, 2003. "Monetary dynamics: a market approach," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 139-152.
    13. Ingrid Groessl & Artur Tarassow, 2015. "A Microfounded Model of Money Demand Under Uncertainty, and some Empirical Evidence," Macroeconomics and Finance Series 201504, University of Hamburg, Department of Socioeconomics, revised Jan 2018.
    14. Usman Qamar Sheikh & Muhammad Zafar Iqbal & Hafiz Khalil Ahmad, 2016. "The Impact of Foreign Aid, Energy Production and Human Capital on Income Inequality: A Case Study of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(1), pages 1-9, March.
    15. Graciela Moguillansky, 1995. "¿Existe una Brecha Respecto del Sendero de Equilibrio Cambiario en el Perú? Un Análisis Empírico para el Período 1980-1994," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 32(97), pages 379-410.
    16. Badry Hechmy, 2019. "Testing for VECM Granger Causality and Cointegration Between Economic Growth and Renewable Energy: Evidence from MENA Net Energy Importing Countries," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 4(2), pages 111-131, December.
    17. repec:cty:dpaper:10.11130/jei.2005.20.2.383 is not listed on IDEAS
    18. Levent KORAP, 2008. "Exchange Rate Determination Of Tl/Us$:A Co-Integration Approach," Istanbul University Econometrics and Statistics e-Journal, Department of Econometrics, Faculty of Economics, Istanbul University, vol. 7(1), pages 24-50, May.
    19. Kargbo, Joseph M., 2003. "Cointegration Tests of Purchasing Power Parity in Africa," World Development, Elsevier, vol. 31(10), pages 1673-1685, October.
    20. repec:ebl:ecbull:v:15:y:2002:i:9:p:1-6 is not listed on IDEAS
    21. Boswijk, H. Peter & Franses, Philip Hans & van Dijk, Dick, 2010. "Cointegration in a historical perspective," Journal of Econometrics, Elsevier, vol. 158(1), pages 156-159, September.
    22. Alexander Schätz, 2010. "Macroeconomic Effects on Emerging Market Sector Indices," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 9(2), pages 131-169, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:65:y:2019:i:6:id:314-2017-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.