Monetary and fiscal policies' effect on agricultural growth: GMM estimation and simulation analysis
The concept of sustainable economic growth is closely linked with the agricultural growth. This is especially true in the context of under-developed countries. Pakistan is a typical under-developed country that has huge labor force employed in conventional rural economy and more than half of the population relies on agriculture for subsistence. The study examines the agricultural growth through developing a model using the data from agricultural sector of Pakistan for the period 1972–2010. The model is primarily based on input–output reduced form structural equations approach. It is then estimated by GMM, validated and used for deterministic simulation analyses. Finally the validated model is used to critically analyze the impact of fiscal, monetary and energy policies on the agricultural output. We conluded that recent fiscal and monetary policies should be continued, while the energy policy needs to be modified in order to improve the agricultural GDP and reduce the rural poverty situation in the country.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pauw, Karl & Thurlow, James, 2010.
"Agricultural growth, poverty, and nutrition in Tanzania:,"
IFPRI discussion papers
947, International Food Policy Research Institute (IFPRI).
- Pauw, Karl & Thurlow, James, 2011. "Agricultural growth, poverty, and nutrition in Tanzania," Food Policy, Elsevier, vol. 36(6), pages 795-804.
- Pauw, Kalie & Thurlow, James, 2010. "Agricultural Growth, Poverty, and Nutrition in Tanzania," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95974, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
- Aleem, Abdul, 2010. "Transmission mechanism of monetary policy in India," Journal of Asian Economics, Elsevier, vol. 21(2), pages 186-197, April.
- Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331 Elsevier.
- Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
- Babar Shahbaz & Tanvir Ali & Abid Suleri, 2007. "A Critical Analysis of Forest Policies of Pakistan: Implications for Sustainable Livelihoods," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(4), pages 441-453, May.
- Whitney K. Newey & Kenneth D. West, 1986.
"A Simple, Positive Semi-Definite, Heteroskedasticity and AutocorrelationConsistent Covariance Matrix,"
NBER Technical Working Papers
0055, National Bureau of Economic Research, Inc.
- Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
- Newey, Whitney K & West, Kenneth D, 1987. "A Simple, Positive Semi-definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix," Econometrica, Econometric Society, vol. 55(3), pages 703-08, May.
- Douglas Gollin & Stephen Parente & Richard Rogerson, 2002.
"The Role of Agriculture in Development,"
Department of Economics Working Papers
2002-09, Department of Economics, Williams College.
- Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
- Dritsakis, Nikolaos, 2003. "The Agricultural Sector in the Macroeconomic Environment: An Empirical Approach for EU," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 4(1), January.
- Kiminori Matsuyama, 1991.
"Agricultural Productivity, Comparative Advantage and Economic Growth,"
NBER Working Papers
3606, National Bureau of Economic Research, Inc.
- Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
- Kiminori Matsuyama, 1990. "Agricultural Productivity, Comparative Advantage, and Economic Growth," Discussion Papers 934, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Hu, Baiding & McAleer, Michael, 2005. "Estimation of Chinese agricultural production efficiencies with panel data," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 68(5), pages 474-483.
- Wallace E. Huffman & Robert E. Evenson, 2006. "Do Formula or Competitive Grant Funds Have Greater Impacts on State Agricultural Productivity?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 783-798.
- Thirtle, Colin & Lin, Lin & Piesse, Jenifer, 2003.
"The Impact of Research-Led Agricultural Productivity Growth on Poverty Reduction in Africa, Asia and Latin America,"
Elsevier, vol. 31(12), pages 1959-1975, December.
- Thirtle, Colin G. & Lin, Lin & Piesse, Jenifer, 2003. "The Impact Of Research Led Agricultural Productivity Growth On Poverty Reduction In Africa, Asia And Latin America," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25834, International Association of Agricultural Economists.
- 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.
- Hsiao, Cheng, 1997. "Statistical Properties of the Two-Stage Least Squares Estimator under Cointegration," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 385-98, July.
- McCarl, Bruce A. & Villavicencio, Xavier & Wu, Ximing, 2009. "The Effect of Climate Change over Agricultural Factor Productivity: Some Econometric Considerations," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49452, Agricultural and Applied Economics Association.
- Fan, Shenggan & Pardey, Philip G., 1997. "Research, productivity, and output growth in Chinese agriculture," Journal of Development Economics, Elsevier, vol. 53(1), pages 115-137, June.
- Eckstein, Zvi, 1984. "A Rational Expectations Model of Agricultural Supply," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 1-19, February.
- R. Färe & S. Grosskopf & D. Margaritis, 2008. "U.S. productivity in agriculture and R&D," Journal of Productivity Analysis, Springer, vol. 30(1), pages 7-12, August.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:29:y:2012:i:5:p:1909-1920. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.